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

To: Rono who wrote (21301)	1/18/2001 4:55:07 PM
From: Maurice Winn	Read Replies (1) \| Respond to of 29987

Ron, I think are right in this one. I suspect NextWave entered a high-stakes game of poker in the hopes of getting $$ billions written off their debt. They came close [with one court supporting them]. The end result was a mess. I am wondering whether Vodafone is similarly playing a very high stakes game of poker with Globalstar. It would be better to assume they are stupid like a fox than simply incompetent in marketing. Incompetent would have explained the first 6 months of failure, but simply continuing the 'money or your life' marketing seems to mean there might be more to it. Maybe they really do think that they will be the high bidder in an asset auction and since they control Exit 1, they can see off Sprint, Boeing or others and pick up Globalstar for little cost. Maybe QUALCOMM and China Telecom will do a joint bid, which would sit well with the authorities in Beijing. Or maybe QUALCOMM, Loral, China Telecom [Bernie sold them solder and how to solder so they must be buddies] will do a bid and use the Russian, Mexican, Brazil, China gateways to sell billions of minutes at 10c a minute through fixed phones [and mobiles]. Vodafone won't have a clear run, if that's what they are thinking. QUALCOMM and buddies will sell minutes to Vodafone, so Vodafone would maintain continuous supply. This is a LOT of fun. Meanwhile, the NZ 3G spectrum auctions has finally ended with cheap prices, being US$60 million for all the 3G spectrum plus a lot of 2G plus a lot of other stuff. The minister, who obviously doesn't know how things work, claimed that the cheap spectrum will mean cheap 3G for subscribers. No it won't. The price of the 3G services will reflect the capacity of the spectrum. If the demand is huge, then prices will be high. If demand is small, prices will be high [due to capital costs being spread over fewer bits and bytes and few competitors in many areas]. If demand is just right, we'll get cheap 3G as competitors compete on price for many customers which will result in low unit costs for the equipment, land, fibre and stuff. The cheap 3G spectrum in New Zealand might simply mean huge profits for the owners of that spectrum instead of the government if demand is bigger than expected and prices are increased to keep demand within spectrum capacity. It's amazing how around the world, people think cheap 3G spectrum will mean cheaper services to subscribers. It will NOT mean that! Demand for spectrum will set the price, not the 3G auctions or giving it to companies [as in Korea etc where 'beauty contests' are held]. Blue skies, sunny, warm. Corn as high as an elephant's eye. Mqurice