To: Jim Parkinson who wrote (6249 ) 7/30/1999 12:18:00 PM From: Maurice Winn Respond to of 29987
Jim, yes, Airtouch and other service providers have minimum minute goals and discounts for exceeding target, so they have incentive to move minutes. But once they are certain of their minimum minutes, they can make money wherever they get most. Since they are certain of selling their minimum, they might as well maximize their profits by selling some expensive 'security' handsets. On the shareholding they have in Globalstar as an incentive, they only get a small portion of that profit whereas they get all the terrestrial profit. GLP profit is a small incentive to put minutes through Globalstar, but the big profit will be the difference between 50c and $1.50 if they can pull it off. At most they'll make about 3c profit from their share of GLP. I see more pressure on p-----g building. Ericy with their GPRS is talking no charge if no data moving. Minute pricing seems destined to go the way of the dodo. Packets will be paid for and delivery date urgency will determine p-----g. That'll be a long time coming to Globalstar, but when the pressure goes on a limited supply of minutes [only 12bn for sale] there will be a scramble to get access to them and prices will rise. Management of minute pricing by GLP will be vital to spread load and maximize profit. The third generation of G* handsets better have a pricing display [CURRENT PRICE IS ...]. Maurice PS: Mr Miethe, come out of hiding. Rajala is not THAT offensive and anyway, shouldn't be able to annoy people so much that they instead of he leave town! Heck, Rajala probably has some good points. For example, ummm, well, there was something. Heck, even Tero is complimenting me on being balanced - so balanced that he couldn't believe I am me. Okay, maybe I annoyed you somehow, so sorry, but please come out. You have good stuff to say.