Globalstar Telecommunications Limited GSAT Message Board

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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT

GSAT 66.66

+6.9%

3:59 PM EST

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To: Tarken Winn who wrote (4453)	5/4/1999 9:03:00 PM
From: JGoren	Read Replies (4) of 29987

Maurice, let me respond with a thought. If G* priced its minutes too low at the beginning, it would have too many users and the customers would be disappointed by bad service. This occurred, to some extent, with the cell phone users; Sprint had a lot of bad-mouthing when it entered the mass market at lower prices. If the high-end folks buy and are happy, others will follow. I guess my thought is there is as big a danger in "overselling" the service and having disappointed users at the beginning while the company gets its act together from the customers' perspective. As long as G* is the low-cost service provider in its market, it should do well; prices will decline, I think, as the customer base enlarges. Indeed, phone customers have come to expect this; it would seem that you would like a marketing-pricing strategy that is counterintuitive to what the market has come to expect. One of the reasons, as previously stated, I believe Iridium is doing so poorly is that potential customers know that a better deal in handset prices and minute prices is soon to be available. [I am waiting to be blasted. :) ]

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