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

To: Hassell Anderson who wrote (15917)	8/18/2000 5:20:16 PM
From: Maurice Winn	Respond to of 29987

Hassell, the spectrum is only worth something if sold to a subscriber. For the next 5 years, Globalstar, by any stretch of the imagination, will be a voice system, with some handy data add-ons, with 10 billion minutes to sell [and maybe double that if some of the terrestrial capacity gains are applicable to Globalstar and I'm sure some will be]. Because the spectrum will NOT be stretched for quite a few years, and in any event, is not for the exclusive use of Globalstar but was to be shared with a few other companies, which happily are defunct [for the most part and it was good to see that Gregg, one of very few, recognizes that Iridium [and ICO] going bust is good for Globalstar in the long run], there is no 'premium' available as subscribers compete for access to spectrum and WWeb applications. We are awash in minutes and spectrum! Even when we reach capacity, because of the high cost of providing service compared with dense terrestrial systems, the minutes aren't going to be as cheap as terrestrial eat-all-you like capacity [for $30 a month]. If Globalstar goes bust, the bond holders won't be able to sell the spectrum to the highest bidder. It will simply lapse and a new company will have to apply for a beauty contest licence. Easy to win since there will only be one contender and the governments issuing the licences will see that there is not much to sell. I suspect the South African holdup is a holdup. You know, a shakedown. "You're money or your life!" When some money changes hands, then the licence will be issued - pure conjecture there on my part, but something has to be the reason for the huge delay and it isn't that Martians have landed and taken over South Africa. Don't mention this to the authorities, but G! is doing a stealth attack on spectrum. By the time it dawns on anyone that G! is a stupendous success and "Hey! They are getting away with all that spectrum", G! will have existing use rights or at least the inside track on using it. If any one country pulled the spectrum, G! could just pull the minutes, overfly them and sell the minutes elsewhere. All good fun! Our fear should be that governments will lobby WARC for reallocation of G! spectrum to terrestrial 3G where the pressure is obviously on [to the tune of $80 billion in Germany and UK]. We need to sell minutes quickly to forestall this. Mqurice