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

To: Geoff Goodfellow who wrote (11541)	4/6/2000 5:13:00 PM
From: Tarken Winn	Respond to of 29986

"Inmarsat hasn't published demand projections, but at current rates of growth the number of customers would rise from a mere 183,000 at the end of last year to about 500,000 four years hence. If each customer spends the same amount in 2003 that he spends now ($2,200), revenues would increase from $406 million in 1999 to $1.1 billion." If Globalstar users also spend $2,200 annually, we actually reach 1 million users in the relatively near future (2001 NOT 2003!), and Globalstar receives 30% ($1/min retail, = $0.30/min wholesale) of that (retail) $2,200, we will be profitable. (That would be revenue of $2.2bn*0.3=$660mln. vs expenses of approximately $500 million) Globalstar phones are much cheaper ($1500 for Globalstar handset vs $2895 for Inmarsat's Nera worldphone - according to GMPCS-US.COM website), have much better voice quality (although admittedly I haven't tried the Inmarsat phone) and their usage is similarly priced (20 minute Inmarsat debit calling cards cost $56.65 each from gmpcs-us.com), so one would expect Globalstar's growth to be more rapid than that of Inmarsat. Just thinking out loud. Tarken