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

To: literaryfx who wrote (15577)	8/11/2000 10:25:50 AM
From: Jeff Vayda	Read Replies (2) \| Respond to of 29987

Ken: All fine and dandy to have a monopoly and force what the market will bear. But right now we have financial obligations to bear in mind. The clock is running and the due date is bearing down on us. It would be a real bear if they default on those obligations cause it would cause me significant pain. (Something I have been bearing to date but do not wish to bear infinitely.) Bearing in mind I will be a bear if they try to push me out and pick up the pieces later at a discount. Bottom line: drop the price. Fill the system now. Prove people want it and will use it. Then increase the price. Jeff Vayda

To: literaryfx who wrote (15577)	8/11/2000 1:01:20 PM
From: hiker90	Read Replies (1) \| Respond to of 29987

Hi Ken, G* does not and will never have a near monopoly. There is always Inmarsat telephones and data terminals for worldwide coverage. In other locales, mining and timber companies in western US use Motorola radio networks: the ones that use repeater stations. An electrician brother of a colleague partly makes a living servicing the radios for timber companies in Idaho. I would guess that Motorola has these networks in the southeast US companies (more on this later). Yacht owners can buy single sideband (SSB) radios for $3k and have complete coverage in all oceans according to a G* reseller who serves the yachting community here in the Clear Lake area, south of Houston, TX. Shipping and barge companies of course also have access to SSB and Inmarsat. Telephone connection via SSB costs $5/minute and Inmarsat rates are roughly $2.70/minute. Finally, the salesman or other business type travelling through sparse cellular coverage can simply wait until cell connection is established in the next town unless they find a lonely roadside gas station first. One anecdote to illustrate that G* is trying to get people to change habits. My good friend owns a mobile car repair business here in Houston. He fixes your vehicle at your location. When he first started he installed Motorola radios in his truck and his house where his wife answered the business line (phone). About two years into the service at the time of his contract renewal, Motorola raised some prices and made the contract a bit more inflexible. A quick trip to the cell phone store showed that it would be cheaper to sign up for the 1500 minute/month plan than to continue with the radios. That was not the case when he first started his business. The added benefits are also a plus: direct contact with the customer, direct contact with the nearby parts store saved his valuable time when searching for the right part, simpler contract, and voicemail for the times he was out of cellular range. My contention is unless G* prices accordingly (low), old habits are hard to change. BTW, I don't think Motorola actually owns the referred networks. I think they sell only the infrastructure.