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To: Maurice Winn who wrote (15970)8/20/2000 12:27:57 AM
From: rhkohnen  Read Replies (1) | Respond to of 29987
 
With CDMA, a minute of user time, which is billed, does not correspond to a minute of satellite time or bandwidth. CDMA has the ability to steal unused minutes, which means that if their is a quiet period, CDMA can fill it in with another user. Same principle as cycle stealing in programming. This is transparent to the user. For example, in the HDR white paper QCOM pointed out that 29 continuous users could translate into 290 average users. G* would charge for th 290 users while only bandwidth for 29 users. The ratio vary depending upon usage. The efficiencies are probably best for internet surfers. While the Internet surfer is typing, G* would be supplying data to another user. CDMA make this possible. With TDMA, which Iridium used, the bandwidth is always used even if the internet surfer is reading a post.<GG> CDMA gives G* scalability that cannot be projected at this time.

Also, from what I can tell G* is using the L-band (0.5-2GHz) for the cell phone to send to the satellite, S-band (2-4GHZ) for the satellite to send to the phone and C-band (4-8GHz) for the satellite to send to the Gateway. There is a a Ku-band (10.9-17GHz) and Ka-band (18-31GHz) that can eventually be tapped into. The Ka-band is what the 3G auction is about. I figure that is what the second constellation will provide.

After all this, I guess I am saying that you cold be very conservative in your projection.<GG>



To: Maurice Winn who wrote (15970)8/20/2000 10:08:00 PM
From: Alan Norton  Respond to of 29987
 
Re: Total Expenses

Maurice, The total expense number of $1B was derived from the following recurring expenses for the latest quarter from the 10-Q filed August 11, 2000:

Interest expense $80.994M
Operations $36.415M
Marketing & GA $15.237M
Depreciation & Amortization $80.850M
------------
Total $213.496M

* 4 = Yearly Expenses = $853.984M

To be conservative, and because I would expect expenses to rise, I used the $1B number.