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

To: Pierre who wrote (20714)	1/1/2001 6:34:40 PM
From: pcstel	Read Replies (2) \| Respond to of 29987

<<Me thinks you over state the problem. Transferring or re-establishing should be relatively easy now that it's been done. We're talking knowledge and expertise here.>> Of course it could be transferred easily.. IF they buyer of the constellation were to have the approval of L/Q Licensee.. BEFORE they purchased GLP in BK.. If not.. They would have to set off on their "endless enigma" with the FCC.. sec.gov "The Globalstar System requires regulatory authorization for two pairs of frequencies: user links (from the user to the satellites, and vice versa) and feeder links (from the gateways to the satellites, and vice versa). On January 31, 1995, the FCC authorized the construction, launch and operation of the Globalstar System and assigned bands of the radio frequency spectrum for the user links. A modification of this authorization on November 19, 1996 assigned feeder link frequencies. This license is held by L/Q Licensee, a subsidiary of Loral Qualcomm Partnership, L.P. ("LQP") which has agreed to use the FCC license exclusively for the benefit of Globalstar." The other major problem is getting a license to use Qualcomm patented technology for use on the "New Globalstar System".. Now typically, Qualcomms' licenses are not directly transfeerable without the consent of Qualcomm.. This was the case when Intel bought DSP Co. , and when Phillips bought VLSI.. In both of these cases.. The transfer of the CDMA license had to be "APPROVED" by Qualcomm.. From the 10K... "Qualcomm has agreed that Globalstar will be the only provider of mobile satellite services to which it will license its patented CDMA technology." Let's look at the hurdles an "unfriendly" purchaser of GLP in Bankruptcy would have to over come to operate the system.. 1. Purchase the assets of GLP 2. Acquire Regulatory Approval for the Constellation (could take 6-9 months) 3. Build Gateways without the help of Qualcomm or Loral (old GLP employees). (could take years) 4. Update Uninstalled Gateways in the Boxes with new Software/Hardware without help from Qualcomm.(could take years) 5. Probably Acquire CDMA license agreement from Qualcomm. (Which Qualcomm could just deny). 6. Acquire Regulatory Authority for Gateway Operation 7. Acquire Regulatory Authority for User Terminal Operation 8. Find manufacture that has the CDMA license and desire to build/design User Terminals/Modems etc for Globalstar System (They would want alot of money up front). 9. Find company to maintain the Constellation.. (Loral would not do it). These were the hurdles that a buyer of Iridium had to overcome that did not meet Motorola's criteria.. Motorola was in charge of finding a buyer for the Iridium constellation because without the help/cooperation of Motorola.. Iridium was VALUELESS!! And the same stands true for Globalstar LP. It is Valueless to a company that does not have the FULL CO-OPERATION of Loral and Qualcomm.. Therefore, It is Valueless to the Bondholders or most any other company.. The assets owned by GLP are VALUELESS UNLESS the company that were to purchase it had the complete co-oporation of Loral/Loral controlled Service Providers, TESAM, Vodaphone, Qualcomm.. Period... End of Story.. There is no Value in the GLP assets without all the pieces in place.. And the complex web of regulatory approvals, Gateway ownership, Technology licenses, are DESIGNED to be that way!!! PCSTEL