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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT
GSAT 59.47-1.6%Nov 19 3:59 PM EST

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To: John Stichnoth who wrote (3996)4/20/1999 4:49:00 PM
From: Rocket Scientist  Read Replies (1) of 29987
 
John Stichnoth, a few thoughts on interesting questions you raise:

Regarding potential users, you left out a big market, which will be governments; I bet that several 100Ks of potential users are within various national, state, and local government bureaucracies and law enforcement organizations. Anyway, I hope that G* already knew what Iridium's learning: the initial market for this service is vertical organizations, Gov't and commercial. My ideal would be: get the phone production line going with these users, then lower the price and adjust the marketing strategy to attract small businesses and rural communities, then individual users.

I like your point about a monthly access/user terminal charge as an attractive way to defray the system cost and allow cheaper $/minute.

As to G* revenue potential, if it can sustain the 35-50 cent per minute wholesale rate, it should make 3-5B$/year when it's fully booked.

Best regards,

RS
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