To: Jeff Vayda who wrote (6293 ) 8/3/1999 4:31:00 PM From: Maurice Winn Read Replies (1) | Respond to of 29987
*Iridium/ICO/Globalstar* This could be the best outcome of all: Iridium continues in service with heavily discounted minutes, which provides worldwide coverage. Therefore, there is no need for ICO. Globalstar can start service and provide the cheap regional coverage with high quality minutes and no latency [which GEOs and MEOs cause]. ICO shareholders go and do something useful and stop losing their money. After 3 or 4 years, Globalstar could launch an orthogonal 10,000km system, such as ICO's planned one, to fill in the gaps so that a totally Global Globalstar system could be offered based on high quality CDMA. Globalstar would have the customers by then to justify it and Iridium would be nearing the end of its life so those subscribers could swap to Globalstar. Also, Globalstar Constellation2 could be launched about 2004 and maybe only 700km high to increase capacity, coverage and upgrade data rates etc, enable small handsets, small aerials on handsets, WWeb access or links to Skybridge and happier customers. Iridium only has 1.3bn minutes to sell, so it's not as big a competitor as ICO which would have 15bn minutes which would really put a big surplus of minutes in space with the resulting effect on minute prices of slashing them to the bone. So, let's hope Iridium doesn't fail. Maybe Globalstar should slip a few hundred million $$ into Iridium to keep it operating and fend off ICO. It all looks like a no-lose situation. It wouldn't be good if both Iridium and ICO failed because there would then be no service to places like Hawaii, Tahiti, Fiji, New Zealand [where a Globalstar gateway is uneconomic unless cheap minutes are offered to the service provider or there are millions of G* subscribers elsewhere providing roaming revenue during visits.] For a reasonable shareholding in Iridium, it would be worth Globalstar funding continuing Iridium operations to ensure ICO stays out of the market and to provide service where Globalstar can't. I'm sure Bernie Schwartz will be on to that one. Heck, Globalstar might just buy the whole of Iridium as a going concern. That would be better than letting Motorola have a free hand at taking it over. Maurice