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

To: CMon who wrote (7601)	9/28/1999 8:43:00 AM
From: Jeff Vayda	Read Replies (2) \| Respond to of 29987

Cmon: to paraphrase a famous quote: "A billion phones here and a billion phones there and pretty soon you are talking about some real money for Globalstar." True: small numbers of marginal users will not add much to the G* bottom line. However, if there are enough marginal users the MOUs eventually are increased to the point of impacting G* and generating some bucks. But herein lies the root of the problem I have been complaining about: Globalstar's (and our as shareholders) interests and the Service Providers are divergent during system rollout. Every MOU is advantageous to G, but the for the SPs, there is a break even MOU, below which, the customer is not worth the trouble. What is that level? For each SP it is different. They certainly enjoy some economies of scale. I dont think their market projections have shown enough of a demand to warrant the effort to reach the volume numbers which make the marginal customer cost effective and accretive to Globalstar. That is why the SPs are not making huge noises. They view G as an added premium feature to their network. If it works, fine, if not well that is no big deal to them either - so long as they dont get bad PR from saying it was suppose to be the best thing since sliced bread. We will not hear much from the SPs. It is not in their interest to march up and down the street singing the praises of Globalstar. Jeff Vayda