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


To: KyrosL who wrote (21358)1/20/2001 8:24:45 AM
From: rf_hombre  Respond to of 29987
 
Kyros, Maybe there is a reason why Loral hesitates to drop minute prices to very low levels to attract huge numbers of customers

If Loral is hesitant to drop minute prices to the very low levels necessary to attract huge customers then we may conclude that they cannot for (and I hate to say this)...technical reasons.

A G* Gateway typically supports 4 CDMA frequencies, is composed of 16 subbeams and its service area is Pi*1800^2. Finally, each subbeam on each frequency can support 55 more or less subs...that equates to 450 square kilometers for 220 subs at any given instant. (assuming best case, with no soft handoff overhead)

Now, if I look outside my window here in eastern Berlin, I can see 10 artsy types on their "handys" and that's within a 50m apartement block.

220 subs per 450 km^2, maybe that explains Globalstar's reluctance to significantly reduce MOU's: If the price was right, the system would be filled to capacity very very quickly. That may terrorize G* folks getting caught with their pants down as they reach for the cookie jar. Sure, that would be a bit of a PR setback but I would say that's a nice problem to have, particularly in light of our predicament. At any rate, prices could always be increased should the constellation encounter this problem. G* may not see how this situation can be addressed "dynamically". They take a monolithic, static view, IMO.

rf_hombre