Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: djane who wrote (7049)	8/31/1999 12:08:00 PM
From: djane	Read Replies (1) \| Respond to of 29987

Tero, another question before you disappear. Do you agree with my belief that Globalstar paradoxically benefits from the 3G wireless data build-out and growing competition among the wireless service/equipment providers in the major urban areas. As they have to spend their limited resources on this very expensive 3G upgrade over the next 3-5 years, there will be less than expected build-out and fill-in of cell coverage gaps outside the urban core and more rural areas and, thus, increase the potential market for Globalstar's voice service. Again, this issue is separate from the Globalstar mobile satellite telephony coverage in geographical areas (e.g., vast portions of China, Brazil, Russia, etc.) in which there is not now and will not be cellular coverage at least in the next 10 years. djane

To: djane who wrote (7049)	8/31/1999 12:26:00 PM
From: tero kuittinen	Read Replies (1) \| Respond to of 29987

I wish I could figure out where the operators stand on this. Obviously, if Voda decided to give a big push to Globalstar, they might turn it into a success. Major commitment like subsidizing the handsets to 500 dollars and call rates to 50 cents would probably make me buy one! The concept is just so cool, no matter what the handsets are like. But where's that commitment? All European operators I contacted shut me out very rudely. Airtouch cited the 1'250 handset price and 1.50 domestic call rate. They said that these are the prices; end of discussion. When I asked about USA-Europe call rates I got some very testy stonewalling. This looks like total lack of commitment. Nothing is stopping the operators from reversing their stance. They could decide on lower rates tomorrow. Why haven't they already done so if they are committed? Why are the European operators so icily distant? You can't advertize satellite phones hard without drawing attention to the shortcomings of the terrestrial networks. Vodafone is locked into a bitter struggle with three other operators in England alone. At least one of them is pushing GSM-900/1900 roaming for all it's worth. If Vodafone now starts a big advertizing push talking about "handset that allows you to overcome the major shortcomings of our digital network" what's the message to the consumers going to be? Maybe Voda has an equity stake in GSTRF - but I bet that's not worth losing even 1% of the European mobile phone market share. Can we at least agree on the target consumers: that people have to pull at least 40 000 bucks a year to be able afford this service at the announced rates? Now - how many people with that sort of income live in areas with no coverage or visit them several times a year? In places like China, all the wealth is in Guangdong, Shanghai and other economic hot spots. Anyone who has any initiative or ambition has already moved into the coastal regions or at least regional capitals. In Russia, Moscow and St. Petersburg hold vast majority of the national wealth. There's a funky nightclub in Moscow called Upstairs, Downstairs or something. A glass of champaign costs 100 dollars there. Obviously there's plenty of wealth in Brazil, Russia and China - but not in the pampas or the steppe. Unlike Morgan Stanley experts, I've visited a typical outhouse in the Russian countryside. Let me tell you, that wasn't the highpoint of my life. I'd think that indoor plumbing is the first priority in the rural areas. On the 3G - I don't see any massive investments yet. European operators are making out like bandits on their networks, which have mostly paid for themselves by now. The money is plowed into international expansion (Eastern Europe, Northern Africa, Asia) and a tentative investments in "2,5G" - meaning GPRS, WAP and other relatively cheap ways of delivering data better. Everybody talks big about 3G - nobody's showing the money yet. That can change at any time, though. Tero