Globalstar Telecommunications Limited GSAT Message Board

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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT

GSAT 62.88

-0.5%

Nov 14 9:30 AM EST

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To: Rocket Scientist who wrote (4336)	4/30/1999 12:16:00 PM
From: John Stichnoth	Read Replies (1) of 29987

The costs for the gateway operators is more difficult to estimate, I think one of the G* execs has stated that the gateways are on the order of a central office in scale, and can be placed to piggyback with existing CO operations, needing some incremental staffing but not a completely new staffing infrastructure. I'd be very surprised if direct operating costs were close to the depreciation and financing costs of the gateway. Those are somewhat under $2MM per year per gateway. That translates to 5MM minutes at 40 cents (retail markup). Or, 200MM minutes to cover 40 gateway costs at 40 cents. Or, less than 2% of system capacity.

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