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

To: Jeff Vayda who wrote (15575)	8/11/2000 9:23:41 AM
From: literaryfx	Read Replies (2) \| Respond to of 29987

Maybe lowering the price per minute is not the point. G* will have a captive market with a near monopoly. Its the same as cable TV before satellite TV. Cable TV companies had regional geographic monopolies and their monthly bills periodically increased. They never decreased. The only marketing deals offered were 1/2 off or free installation (equivalent to lowering the cost of the sat phone) and maybe one or two months free service during the summer off season. People had a choice between free broadcast TV or cable TV with a monthly bill. Cable TV flourished. The same will happen with G*. Another example is Microsoft's pricing of its operating systems. Again, they have a captive market with a near monopoly. In short, monopolies, or near monopolies, do not appear to need price elasticity. Ken