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

To: Investartist who wrote (15620)	8/11/2000 7:57:36 PM
From: hiker90	Read Replies (1) \| Respond to of 29987

Thanks for the clarification. I searched the ACeS web site and found no discussion of prices. Is your source on the web? FWIW, entertain this simple math. Their sat, Garuda, has a 5.78 billion minutes a year capacity and a 12 year lifetime. Now assuming sat, launch, and gateway costs were $1 billion, capital costs spread out over the 12 years would be 1.4 cent per minute. G* wins in all market segments if ACeS charges more. However, ACeS could secure significant share in the fixed site market if its prices are low enough. It will be interesting to see how well the ACeS carkits perform. If they perform well, the the CDMA path diversity advantage held by G* might not be significant. Bottom line: due to its inferior technology, ACeS has to compete on price and should have the room to do so due to its lower capital costs. G* will have to respond and be price competitive. best regards.