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


To: dwight martin who wrote (6273)8/1/1999 3:26:00 PM
From: Rocket Scientist  Read Replies (1) | Respond to of 29987
 
<doesn't each minute cost GSTRF only $0.14 to provide?>

IMO, it will cost G* about 0.8-1B$/year to run the system, allowing about 300M for debt service 300-400M$ for depreciation and 200-300M$ for operations. These numbers are pretty consistent with mgmt claim that the system capacity of 10B call minutes per year has breakeven near or a little below 10 cents per minute. But of course the GW operators and retailers add costs and margins to whatever G* charges, and G* won't be selling 10B min/year no matter the price for much more than a year, IMO, as that sell rate requires a full set of gateways and several million user terminals.