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

To: Jeff Vayda who wrote (7835)	10/13/1999 9:43:00 AM
From: slacker711	Respond to of 29987

Another take on Globalstar....$1.50 for national calls, $3.00 for global roaming. wirelessgeneva.com Globalstar gives out numbers Globalstar chairman makes predictions on take-up, revenue and pricing Globalstar yesterday made a rash of predictions about subscriber figures and pricing to mark the launch of its mobile satellite services. When Iridium filed for Chapter 11 in summer this year, amid a frenzy of press attention, Globalstar's Peter Bacon suggested that in giving out so many high profile statements about take-up, the troubled operator had done little more than give detractors a stick to beat it with. He added that Globalstar would, by contrast, make no such predictions. If he was attending the Globalstar press conference yesterday Bacon have been surprised to hear his chairman, Bernard Schwartz, making bold statements about expected handst sales, revenues and subscriber numbers. A soft launch, with friendly, non paying trial subscribers in a limited number of regions would mean that take up would be slowed but nonetheless the numbers being bandied about were fairly aggressive. Globalstar is unfazed by its competitors troubles, said Schwartz, citing independent research which has identified a global MSS market of some 40 million subscribers. By the end of next year, he predicted, Globalstar would have attracted one million of these, generating $5-600 million of revenue and a cashflow in the region of $200 million. Come the end of 2002, Schwartz indicated he expects 3 million subscribers, generating revenues of $2.8 billion and a cashflow of $2.1 billion. Globalstar had brought along representatives of several of its service providers, most of whom were none too keen to discuss business plans. A rough idea of pricing was given, however, with figures of $1.50 per minute for national calls and $2.99 per minute for global roaming calling forth a consensual murmur from the service providers. Swartz elaborated, indicating that Globalstar's share of the loot would amount to $0.47 per minute and that the average user is expected to generate 160 minutes of usage each month. Handsets will sell for $880-1500 depending on the provider, and fixed wireless units can be expected to cost up to $2000. Initial orders of 300,000 units have been placed with the three handset suppliers; Ericsson, Qualcomm and Telital, and so far 10,00 units have been delivered to the service providers. Technically, Globalstar claimed to be very happy with its constellation of satellites, with Schwartz announcing that the intial 7 year lifespan expectation has now been extended to 10 years.