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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT -- Ignore unavailable to you. Want to Upgrade?

To: Maurice Winn who wrote (5112)	6/8/1999 12:23:00 AM
From: Veiko Herne	Read Replies (1) \| Respond to of 29987

Thanks I hope, this price has been calculated by expected number of usage, not to 100% capacity. As I see, pricing a call depends a market. If You want to use a SAT phone to announce, that You reach to Mount Everest or use it for reporting news in catastrophe or war zones, where other telecommunication is broken, it can be priced anywhere up to $10-$25 minute. This is, what Iridum marketed it. The number of customers, who want to use it are very limited. If You want to use it for long distances, global phonenumber and something to be proud of, I think current Globarstar pricing is right. In Estonia there is still monopoly in telecommunication and long distance to US costs $3.5/ minute. However, I can use a callback service for 44c / minute, which is unlegal. I don't know yet, will the Globalstar phone here be unlegal. Veiko P.S. I'm not in telecommunication business. I have a business software firm - financials98.com

To: Maurice Winn who wrote (5112)	6/14/1999 10:53:00 AM
From: Rajala	Read Replies (2) \| Respond to of 29987

So, Maurice, you didn't calculate the break even point, huh? >I didn't calculate the breakeven prices for Globalstar and >Iridium, the companies and others did it.I'm just reporting it. >Globalstar says they have a breakeven around 8c per minute. >Iridium's is about $1.20 per minute [but that will be rising as >their unpaid interest bills mount]. Hmmm... the main cost for satellite ventures is the capital cost. So is the capital cost of I* 15 x that of G*? Of course not. So where does the difference, calculated by the "companies and others", come from? It comes from much higher amount of traffic assumed. Project larger volume of traffic and you can project cheaper per minute price, which leads to even larger projected traffic, which results in cheaper projected minute price etc etc ad infinitum. Very nice indeed. If you believe in this sort of business modelling. - rajala