Globalstar Telecommunications Limited GSAT Message Board

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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT

GSAT 59.91

+4.0%

Nov 11 3:59 PM EST

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To: Maurice Winn who wrote (4187)	4/27/1999 1:46:00 AM
From: John Stichnoth	Read Replies (1) of 29987

Maurice: On pricing. My understanding is that G* doesn't have direct control over pricing at the retail level. They can make their charges to the local service provider, who then sets his own rate schedule. A service provider might charge $2 per minute while offering a plan that includes unlimited free global calling as part of a "one-rate" plan. Bell Atlantic charges something like 15 cents a minute for their basic cellular plan (200 minutes, $30?--I don't have the advert in front of me). They have plans up to maybe 800 minutes, perhaps. As a super-premium plan they might offer some great number of minutes for a fixed price on G*. Which, I think, is about what you have been saying. It is not Globalstar signing up the customers, however. It is the local service provider. Sometimes, there is an interim company in between Globalstar and the SP, for instance Tesam or Elsacom. Globalstar suggests this setup gives them a distinct marketing advantage. From our exchange last week, I can see they have a point. Australia seems to be much more laissez-faire on pricing than America. We here still harken back to the oil shock in the 70's, when gas stations were accused of price gouging and Nixon imposed price freezes. Nowadays, when Supply/Demand gets out of whack and someone wants to raise prices suddenly, there is a great hue and cry. Different pricing and marketing policies would be absolutely appropriate Down Under and up here. Under the Globalstar setup that is not only possible, it is almost assured.

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