To: John Stichnoth who wrote (7647 ) 9/29/1999 11:43:00 AM From: Jim Parkinson Read Replies (1) | Respond to of 29987
John, I agree with your assessment. I guess it is fair to say that many are confused and frustrated with the speed of the rollout, apparent lack of handsets, and lack of flashy ads and pr. But it is true that G* is now becoming the manufacturer and the SP's are becoming the retailers who will incorporate this new product amongst their existing product lines. They will do this very carefully which I now understand better and feel is the right approach. They want to be sure that the product will in fact perform up to expectations. That is what Dan from AirTouch told me as well as Jeanette from Loral. That is the right approach especially in light of Iridium. It is not unlike opening a restaurant, something I am somewhat familiar with. It is very easy to put 2 or 3 mil into a facility and open it with searchlights and fanfare with guest coming in the front door as the carpet layer is heading out the back. Tons of guest show up but unless the crew is well trained in all facets of the restaurant's operation (kinda hard to do when the carpet layer is still present), they will initially execute poorly in both food and service and the honeymoon will be short lived. I have made this mistake early in my career and see it repeated over and and over again today. Fortunetely I did learn from my mistake as I think our SP's have learned from Iridium and subsequent openings were slow, deliberate and expensive, but I am still in business. In fact those restuarants opened properly are thriving after 10 years. Perhaps this a parallel, perhaps not. On handsets, it seems the industry practices the just-in-time approach and sometimes misjudges the demand. I suspect the handset manufacturers wanted to be sure that at least 32 sats were up and running before cranking up production. That didn't happen until July, less than 90 days ago. The Q's own production gets into trouble from time to time. 2 months ago I needed a replacement for my Q-820 handset and had it within 3 days. Last night I found out I needed to replace my wife's because our teen ran over it (another story), and was told they were 2 to 4 wks backordered. Finally, there is no question our stock price would be higher with a speedier rollout but after reflecting, I think what they are doing is the right thing. Am I worried about demand? Absolutely not! I think Ir would have sold a bunch of bricks if they worked as advertised and had they had motivated retailers. The demand is there. Go back and read post 4941. I do on occasion and find it to be quite comforting.