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.

Technology Stocks : Loral Space & Communications -- Ignore unavailable to you. Want to Upgrade?

To: Jeff Vayda who wrote (6861)	10/12/1999 1:01:00 PM
From: Rocket Scientist	Read Replies (1) \| Respond to of 10852

I've been thinking about the interest of McCaw & Gates in buying into an existing LEO/MEO system to jump start Teledesic. Of the three options (IRID, ICO, G) I conclude ICO is by far their best move. IRID, as we know, is a very low capacity system with all the assets already in space, so all Tdesic could get out of it would be a limited technology demonstration. IRID has the advantage though of being instantly available and is supported by T's choice of prime contractor Motorola. G presumably isn't for sale at a bargain price. ICO, designed from the beginning with large (voice) capacity and with all the space assets still on the ground could presumably be tweaked to fit Tdesic's needs. A logical possibility would be to condo-ize the ICO s/c so, for example, ICO could lease half it's capacity to T, use the remaining for it's own mobile voice biz. Seems to me this might be a very good scenario for Loral investors: (1) All those HS601s that are half built for ICO are going to be sold to somebody eventually; it's better for Loral and the industry at large to get them sold to ICO/Teledesic than to have them sitting around waiting for another buyer. (2)Lor and G* stock price could benefit if ICO goes forward with reduced capacity as opposed to just dieing altogether. Being a monopoly in an "industry" that doesn't really exist yet makes me nervous. Offsetting this somewhat would be potential damage to Skybridge's prospects, but I don't think Loral's share price contains much imputed value for SBridge anyway.