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


To: Maurice Winn who wrote (15680)8/13/2000 9:07:54 PM
From: literaryfx  Read Replies (1) | Respond to of 29987
 
>> Those problems should have been fixed first. But simultaneously, since they haven't been
>> and time is running out, the minute price should be set at a market-clearing price which
>> would stimulate demand and salesperson interest and learning and stir things up and make
>> it happen faster.

I feel the flaw in this approach is that the stock market would incorrectly perceive a
second price cut, on the heels of the bundled Freedom Plan (which was a sharp move), as
a clearance sale indicative of a terminal execution/demand problem, especially with the
current negative mood towards the satellite communications industry. The shorts would
have us longs for lunch.

>> Yes, it's been bad management.

I would rather say there have been mistakes and unforeseeable problems, but G* will be the
first company to get it done right.

>> Bad market research too. There are NOT 40 million people lined up waiting for the
>> Globalstar phones at $2 a minute and $1500 a handset with a $40 a month charge plus
>> a connection fee, plus a big bundle for a car kit...

I agree 100%.

Ken



To: Maurice Winn who wrote (15680)8/14/2000 3:25:43 AM
From: hiker90  Respond to of 29987
 
I found this interesting marketing plan summary while trying to better understand what type of competition ASIA Cellular Satellite (ACeS, GSM + 1 GEO sat) will present G* when it comes on line next year. From the ACeS newsletter, July 1999, Volume 4, Mr. Ashutosh, VP of Business Development had the following to say about marketing (http://www.aces.co.id/menu.htm):
" The single largest challenge that is being / will be faced
by the 5 operators after successful launch and integration of the systems will be marketing and distribution. The early adopters of new technology are either those consumers who have an immediate perceived need or those who will purchase the first of any new technology introduced.

It has been demonstrated that the cost of the hardware (hand-sets)is not a deterrent for a consumer. It is the recurring cost of airtime that needs to be handled with consumers.

Pricing for satellite communications will need to be similar to cellular prices. Peak, Standard and Off-Peak prices will have to be fixed. Current consumer perception is that satellite phones should be priced at levels simi-lar
to that of existing terrestrial phones."

The above leads to what does cellular service in China cost? Brian H do you know? My understanding is that G* is counting on the China market to purchase significant G* minutes. RS would you clarify this and re-post predictions from the last published "plan". Also, it is my understanding that China is exactly the type of market that G* was relying on to increase average MOUs via fixed site terminals. Anyhow, G*'s head start in China will end some time next year as ACeS will also offer handhelds, car kits, fixed site terminals, and data capabilities. Handhelds and data capabilities were demonstrated by the K2 climbing team. Digital photos were relayed back through the handheld connected to a portable computer.