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

To: brian h who wrote (11272)	3/27/2000 1:15:00 AM
From: Jon Koplik	Read Replies (2) \| Respond to of 29987

Hey ! WSJ article on G* planning price cuts. March 27, 2000 Globalstar Plans Price Cuts to Bolster Demand for Its Global Phone Service By ANDY PASZTOR Staff Reporter of THE WALL STREET JOURNAL Globalstar Telecommunications LP and its partners, seeking to boost demand for satellite-based telephone services, are expected to slash the purchase prices for their telephones and announce cuts in certain calling charges, according to Globalstar officials. The marketing push, scheduled to be announced during the next few days, comes four weeks after the company launched a major international advertising campaign and in the wake of the slower-than-expected rollout of its services in certain areas due to a lack of telephones and other problems. Bernard Schwartz, Globalstar's chairman and chief executive, maintained the cuts in retail prices of handsets had been part of the company's marketing strategy from its inception, adding that there is "lots of anecdotal evidence" to indicate the project is garnering consumer support. "Where it has been rolled out, we're getting positive feedback from the users ... The early indications affirm there is a market," Mr. Schwartz said. The moves are expected to reduce retail prices for the handheld phones, currently about $1,500, by 25% or more in many markets in conjunction with promotional packages requiring minimum monthly usage and special calling charges. Mr. Schwartz said the price cuts for the equipment will be shared between telephone manufacturers and distributors, with Globalstar assuming a relatively small portion of the financial burden. Analysts during the past few weeks have expressed concern that Globalstar has been attracting too few customers for its global satellite-based services. The San Jose, Calif., company hasn't released specific figures for subscriber sign-ups and isn't expected to do so until it announces results for the fiscal first quarter ending March 31, according to Mr. Schwartz. Globalstar's stock, which has taken a beating recently, was down $1.9375, or 11%, to $15.4375 in Nasdaq Stock Market trading at 4 p.m. Friday. The global-services project, which involves a fleet of 48 satellites managed and controlled by Loral Space & Communications Ltd., is being closely watched by analysts and satellite-industry officials because its debut follows the collapse of two much-publicized global-telephone projects. ICO Global Communications Ltd. and LLC failed in their early phases. Iridium has ceased operations and is being liquidated, while ICO is striving to emerge from bankruptcy-court protection with a financial transfusion from a group headed by cellular-phone pioneer Craig McCaw. As part of its marketing efforts, Globalstar is working with U.S. and Canadian government officials to line up additional orders. In addition, various incentives either have been or are about to be announced that will offer rebates to Iridium customers who agree to sign up with Globalstar. Copyright ¸ 2000 Dow Jones & Company, Inc. All Rights Reserved.