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

To: Selectric II who wrote (15760)	8/15/2000 2:18:21 AM
From: Maurice Winn	Respond to of 29987

In bankruptcy, Vodafone would lose their contractual rights with GlobalstarLP. If the contract includes a non-performance clause which gives ownership back to Globalstar [perhaps with some compensation] then the gateway would also go into the assets to be sold off to the highest bidder by the creditors. Vodafone would have no particular rights to the available minutes. Nor would any other service provider. If a particular service provider had exclusive rights in a country [such as China] thanks to government edict, then yes, unless the new owner came to terms with them, the new owner wouldn't sell minutes in that country. But not all countries take such a myopic view on business. Those countries could be ignored - left without Globalstar service unless they agreed to favourable new terms. The new, cheap minutes would be gobbled up by other more co-operative countries at bargain prices. There is no way that Vodafone would have exclusive rights in countries like Australia. I believe the international agreement did not allocate spectrum solely to Globalstar, but was to be shared with other satellite systems, so there would be others in most countries who could claim the right to use Globalstar spectrum. Neighbouring gateways could supply service if a particular gateway was unavailable for some reason [if the country in question agreed, which most would do - most countries don't have their own gateway even in the current plan]. A new owner of the constellation could have a booming business in weeks, not years. Service Providers could be in for a good deal, or out if they prefer that. The good deal might be 10c a minute wholesale price provided the retailer charged no more than 20c a minute. I guess there'd be some takers! Mqurice