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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT
GSAT 62.25+6.2%Dec 19 9:30 AM EST

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To: Maurice Winn who wrote (4707)5/19/1999 11:18:00 AM
From: John Stichnoth  Read Replies (2) of 29987
 
Maurice, Valueman was the first I saw (in the last 1000 or so posts) to point out the problem with lack of handsets. And they are the problem with your scenario of low prices. Yes, it would be great to fill up the time. But, that can't be done at any price until there is something to fill up the time with. No handsets, no minutes. Not enough handsets, not enough minutes. People aren't going to pass around the limited number of handsets to make sure the minutes get filled up, no matter what the price.

You are right that the SP's interests are fairly closely aligned with G's. In addition to your reasoning, there is the discount for volume they will receive. They make more money per minute the more minutes they use.

And a question: Someone a couple of days ago stated that the gateway providers' reliance on the local terrestrial network would make their call quality be as bad as the weakest link. (If you're trying to call from Mexico, your call will sound like it's coming from Mexico). I don't think this is quite accurate, but need confirmation.

The local gateways will be switched directly into the international trunk lines, for international calls, won't they? So, international calls from the foreign country would be dependent on the quality of the international line from the gateway's country. And that's a lot different from relying on local telephone lines within that country. (Of course, the terrestrial line receiving the call will still be dependent on its local line quality, but this is a variable for all the providers). Do you agree?

Best,
John
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