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

To: pcstel who wrote (20929)	1/5/2001 9:18:44 PM
From: TMann	Read Replies (1) \| Respond to of 29987

Who pays?? The entity getting the monthly fees which would be the service provider and G* to some degree. Why? because they are recuperating the subsidy by requiring a 2-3 yr. contract. This is very simple. One only needs to look at Charlie Ergan and DISH to see how this is done. Is DISH showing earnings? No, deep losses but the revenue line is outstanding, and eventually it will fall to the bottom line, thus the stock keeps moving higher and higher. 5 million subs by now; thats roughly a million a year since the launch. The cost to acquire subs is inversely proportional to the number of subs. If we have 1 subscriber the cost is $4B. If we have 10 million subs, the cost is $400 per sub plus perhaps some small marketing expense. Maurice is right, the big cost has already been incurred; might as well get some revenue. Run camels run.