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

To: Geoff Goodfellow who wrote (7941)	10/21/1999 3:14:00 PM
From: Rocket Scientist	Read Replies (5) \| Respond to of 29986

Geoff, I'd like to commend you for making the most articulate bearish argument on G* I've ever read. Time doesn't permit me to respond as fully as I'd like, but a few counterpoints: AMSC and INMARSAT h/w is "luggable" but not really mobile and h/w costs are at least 2X what G's suggested retail price for a handset; as a GEO based provider they have latency effects that can't be eliminated. Inmarsat's price of 3$ (I've never seen anything less than that, btw) is substantially higher than G for the types of (regional) calls that G* expects to be by far the most common. If the 1.50 price you mention is really available from INMARSAT, fully terminated, then I suppose for international calls it may be cheaper than G, but how often do people make international calls on their cellular phones? The other important question: how much does Inmarsat charge it's distributors (i.e., how much profit incentive/pricing flexibility do they have). In G's case we know that the difference in G*'s price to the GWs and the suggested retail price to consumers is about 1$ (to be split between GW and retailer). Out of that 1$, 0.7-0.8 is almost certainly pure profit. Message: the retailers and GW operators will have plenty of incentive to push the service, and room to reduce rates if necessary to attract customers. Regards, RS

To: Geoff Goodfellow who wrote (7941)	10/21/1999 4:21:00 PM
From: Jim Parkinson	Read Replies (2) \| Respond to of 29986

Geoff, thank you for the thorough response. As RS stated, yours is certainly one of the most articulate bearish arguments on G* I have seen. It is very thought provoking to say the least. I just finished reading Globalstar's latest promo piece I assume was handed out at the conference and, as expected, makes very compelling argumemts. One cannot help but be impressed by the plans for Australia alone. The fixed terminal options soon to be available are also very compelling. But, as you eloquently point out, if the market only adds up to about 50K paying telephone subs a year from now, it will be Iridiumstar. I can assure you that I and many others will be watching the roll out very closely for answers to the demand question. Thanks again.

To: Geoff Goodfellow who wrote (7941)	10/22/1999 5:24:00 PM
From: arun gera	Read Replies (1) \| Respond to of 29986

Geoff: How would you classify the 300,000 Omnitracs (combination of satellite and terrestrial service)users with respect to Globalstar? Arun

To: Geoff Goodfellow who wrote (7941)	10/23/1999 10:43:00 PM
From: Jon Koplik	Read Replies (2) \| Respond to of 29986

Geoff - Yes, you are articulate. But allow me to give my thoughts as to why you are wrong ... I will use myself as an example. I never had a cell phone (and never even thought about having one) until about a year and a half ago, when ... I decided to get one solely because I was starting to accumulate a meaningful position in Qualcomm stock, and wanted to be forced to experience the realities of using a cell phone, dealing with customer service at a wireless carrier, etc. As time passed, my wife and I started doing exactly what all those clever people at Qualcomm (and Sprint PCS and ...) figured we would -- we started using the cell phone a lot more than we ever imagined. We eventually upgraded mine to a Thin Phone. We also got my wife a separate phone number and another Thin Phone. We also both got text messaging (AND -- we pay for the plan that allows 500 messages per month (each)). Also -- we started to notice places where there is NO COVERAGE. Since I earn my living trading commodity futures for my own account, the prospect of paying the occasional $1.50 a minute does not seem like a big deal (and, I bet the $1.50 will remain constant or decline over time). We will get a Globalstar phone ! Another important detail -- I never once in my life heard about the existence of satellite telephones for people like me until I heard about Iridium and Globalstar. Your comments about : X number of people signed up for Inmarsat, etc. are not relevant to predicting G* subscribers. How many "mere mortals" had an advertising insert for a satellite phone stuffed with their monthly phone bill ? I would predict you will be absolutely stunned at the excellent subscriber numbers and growth rate for Globalstar. We shall see ... Jon.