To: rhkohnen who wrote (21388 ) 1/21/2001 9:20:31 PM From: Maurice Winn Respond to of 29987 <Is the elephant starting to move? > I think the answer is no. Vodafone Australia has been using those advertisements for over half a year. Their pricing hasn't changed for half a year They still have the same old. "GREAT NEW $30 and $50 Plans!" on their "Pricing - Call Plans" page. globalstar.com.au Look at their prices!! A$3,000 [A$2,964] for the Ericsson phone PLUS A$30 per month PLUS A$2.84 per minute for both outgoing AND incoming calls within Australia. Call overseas and they sting you more!! There have been arguments made that price per minute is of little relevance [Tero Kuittinen, Gregg Powers, and others]. If that's true, how come GlobalstarUSA offers cheaper rates for lots of calls and how come they offer Time or Money discounts? If a discount isn't a motivator, why cut the price? Why did Globalstar LP give a discount way back in early 2000 if price per minute doesn't matter? Why does GlobalstarUSA offer 'special' pricing at all? Price per minute matters. The shape of the price elasticity curve matters and we are obviously far from the price which will fill the system quickly. Many, many people have thought Globalstar sounded good, then gone "Yikes!" when told the prices. Jon Koplik has said how he phones somebody on the terrestrial phone, then calls them back on the Globalstar phone, if he wants to talk to them on the Globalstar phone [presumably to show them the call quality]. He does that to save money or he would simply phone on the Globalstar phone and if they aren't there, simply hang up. Right Jon? That means the price per minute matters. Mqurice PS: Vodafone staff [Darwin and Sydney] were saying that CDMA means Can't Dial Me Anywhere. Vodafone is trying to sell GSM and Globalstar. But not trying very hard at all to sell Globalstar, even though their margins on Globalstar are MUCH bigger than with their GSM system and they have a huge advantage over competitors thanks to their complete national coverage. Australians tell me they see no Globalstar advertising. They tell me that there are no Globalstar displays in Vodafone shops. The phones [or single phone] are kept out the back. Maybe that's changed but it's top secret if it has.