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

To: Jeff Vayda who wrote (8621)	12/9/1999 6:50:00 PM
From: Maurice Winn	Read Replies (2) \| Respond to of 29987

*Service Providers and handsets* < The manufacturers are unable, even if demand warrants, to increase capacity until around June, at which point they can go to 80,000 per month; BS sees this capacity problem as to why the SPs aren't placing large orders because the SPs don't want to pay for the phones until the manufacturers are able to ramp up; BS sees the initial 300,000 order lasting until May or June, at which point he sees a surge in phone production / orders; 650,000 phones delivered by 12/31 > This doesn't make sense. The service providers don't want to pay for phones until the manufacturers are able to ramp up. But of course the manufacturers won't ramp up until they have fixed contracts. The pretence that the problem is with the handset makers, [namely Qualcomm, because Ericky and Telit are still unable to produce phones that work well], is an excuse. The delay now is that of the service providers and their governments. The FBI seems to be the problem in the USA - costing many lives by their delay whereas they should be saving lives and protecting property. Some service providers might be stalling until the constellation is complete and but they have nearly run out of reasons for delay before the clock starts ticking on their exclusivity agreements. The answer to the alleged handset shortage is simple. Order 1 million handsets now, with a fixed contract with delivery dates and penalties for late delivery all set out, with cash on delivery for each delivery. Then the handset maker will have guaranteed sales at set prices. The service providers will have all the handsets they want with no financial risk. The real reason for the handset delay is that the service providers are not the great marketers they pretend they are and they have no idea how many handsets and minutes they can sell at $1200 a handset and $1.50 a minute in June. They want to suck it and see if it's a lemon and leave the financial risk to others. Well, the rubber is now on the road. So far, there is NO squealing of tyres and acceleration with smoke pouring out the back. There is not even acceleration. The drivers have not even climbed into the driver's seat. But they are calling to the pit crew to refill the tank with gas?!! "We'll pay you later, really". 125 phones in France already? This is a joke. This is not a mass market. We need to be talking millions of phones, not 10s of phones. 400 friendly users in the USA? Well, Bernie would have one. Irwin has one. That's two. Then the President would have one, that's three. Some of the technical people at Globalstar and Qualcomm would have them, so that must be 50. Then Craig Farrill and some of the GlobalstarUSA people would have some. That's about 100. Then there are distributors, lots of other people in Globalstar/Qualcomm/AirTouch the FBI test crew and hangers on. This is a month after the 'hard launch'. This is not good. But at least it's all going according to plan which IS good. Hmmm, maybe I'll start a commodity market in Qualcomm Globalstar handsets. Order 500,000 now for delivery 100,000 per month, 25,000 per week, 5,000 per day, from May to September. COD. With late delivery discounts of 5% per week delay, 20% for one month delay, 40% for two months, 60% for three months, 80% for four months, 100% for five months. Something like that. Then, when service providers can't get handsets, they'll have to come to me! Boy, will I sting them! They'll pay, since they will be getting $1.50 per minute which is $1 per minute profit as well as attracting new terrestrial customers. They are planning on making a fortune. Well, they'll have to hand a big chunk over to me! Now, just how fast can these production lines be ramped up? Looks like a safe bet if it takes until June to ramp up, even if demand is high. That's a 6 month lead time. Maurice Here's that url again for easy clicking... gmpcs-us.com