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

To: TMann who wrote (20960)	1/6/2001 12:13:19 PM
From: pcstel	Read Replies (3) \| Respond to of 29987

TMann: <<But that's the way its structured. They have to meet their contractural obligations and I believe they are reimbursing G*/Q/Lor when gateways are accepted and phones sold. Do you have indications that they are not???>> Why is it structured that way? After all. The reason that the Service Providers were to get "The Lions Share" of the Revenue is that they were the Retailer.. It was their reward for Buying, Installing, Licensing the Gateways, and setting up the retail marketing.. So it only made sense.. They were going to have to fund the Advertising/Marketing.. GLP was just a Wholesaler. GLP was going to set back. Collect royalties on UT's and Gateways, and collect their .47 cents a minute.. That's about it!! Now GLP has to provide Vendor Financing for Gateways and User Terminals, Provide Co-op advertising, and hire their own "direct sales" force in order to try and make the Company work.. In light of that.. They had to already discount their already low "wholesale" rate to the Service Providers by another 20%.. And even after all this.. The Service Providers sit around with their hand extended waiting for some more cash/financing from GLP!! Am I the only one who sees this as "problematic"? Does VOD mind if GLP does this.. Not at all.. Let GLP hire a "direct sales force", and do their own marketing at GLP's expense.. All the better for the VOD.. Because they still get their $1 per minute.. And still get the monthly service charge even if ZERO minutes are used on a account, and GLP gets ZERO dollars in revenue from the subscriber.. As far as indications as to whether they are paying for their Gateways etc.. Just look at the 10Q's.. ASSETS: Production gateways and user terminals.... March 1998 NO ENTRY FOR THIS CATAGORY June 1998 63,205 Sept. 1998 $ 88,331 Dec 1998 $145,509 <Gateway delivery complete from Qualcomm>. March 1999 $ 142,879 June 1999 $135,313 September 1999 $126,733 December 1999 $ 114,980 March 2000 $126,453 <UT deliveries recorded> June 2000 $165,676 <More UT's delivered (unsold)> Don't get me wrong.. Gateways have been paid for! So excuse me when I took an exception to your post stating that Loral should discount FSS revenue to customers who purchase Globalstar airtime so that the Service Providers get yet another handout from [Globalstar's [Founding Fathers]]. The other interesting thing that Washington Post Article that NO ONE seems to have brought up is the following.. "Our planned test site in the Mojave Desert had no roads for cars; we could reach the Valley of Fire State Park only by all-terrain vehicle. A guide at ATV Action Tours assured us there were areas in the mountainous region that no cellular signal could reach. We smiled and told him to take us there. About halfway into our four-hour expedition to the cellular dead zone, reviewer Carlos A. Soto's four-wheeler blew a tire on jagged rocks. While our guide fixed the tire, we conducted our first test. We extended the Qualcomm satellite antenna to the sky, where Globalstar has 48 satellites in low Earth orbit. The phone had also worked indoors, but we found the satellite signal was not as robust as a cellular signal and could not penetrate walls or ceilings very well. The phone worked best near a window. In the wasteland, however, the satellite signal was strong. I called someone in Washington and we spoke for several minutes before I revealed I was talking via satellite. The connection was crystal clear. Meanwhile, a few of our cellular phones also eked out a signal." A four hour expedition into the "Badlands" of the Mojave Desert with no roads for cars to reach a cellular "Dead Spot".. And even half way into this 4 hour journey.. There was still a Cellular Signal?? PCSTEL