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 (7209)	9/5/1999 1:42:00 AM
From: djane	Respond to of 29987

Banker Savvides on Climate for Satellite Financing: Comment (via I* yahoo thread) Bloomberg News September 3, 1999, 9:23 a.m. PT Paris, Sept. 3 (Bloomberg) -- Following are comments by Savvakis C. Savvides, manager of project financing at the Cyprus Development Bank Ltd. in Cyprus, on satellites companies raising money in the wake of bankruptcy filings by Iridium LLC and ICO Global, both of which were seeking to build global satellite- telephone networks. ``The answer is yes: Iridium's and ICO's troubles are going to affect the financing of new projects. But in a positive manner, it's going to make new satellites companies think more about the real issues -- the fundamentals of their marketing propositions and their products. ``Until recently, a lot of other companies were comparing themselves with Iridium, an Iridium's pricing (of telephone handsets) and considering themselves by comparison to be better, but it doesn't work like that. You have to look at the marketing fundamentals' of any proposed satellites project. ``I do think that providers of global satellite-telephone networks have something to offer -- global coverage is a benefit would be acknowledged by any potential customer, but the question is how you take this to the customer and at what cost. If someone finds a way to integrate this customer benefit into existing benefits that they get from terrestrial services, then I think that would be a wining proposition. ``As it is now, it's a question of standards. Do they expect people to carry two phones with them, wherever they go? One cellular phone, one satellite-based phone to fill in the gaps left by cellular coverage.' The banker said that given the problems encountered by Iridium and ICO, he believes Globalstar, which is also proposing to offer satellite-based phone services by year end, will be under pressure to prove its business case within the next six months. ``I think that with the situation and anxiety that exists in the market, people will be looking in the short term for them to prove themselves. And that's unfair as they're likely to have some teething problems, just like other systems. ``But probably after six months people will become impatient to see results, and I think that'll be too soon.' Globalstar is a joint project -- led by Loral Space & Communications Ltd. and owned by Qualcomm, AirTouch Communications Inc., and France Telecom SA -- which aims to create an operational staellite network with data transmission, fax and position location services.