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

To: waitwatchwander who wrote (25480)	4/2/2003 11:06:22 PM
From: cfoe	Respond to of 29986

The following thought occurred to me. QCOM was once interested in acquiring G. I wonder if the problem uncovered during their due diligence was what Loral wanted out of the deal. What is happening now might be the final (or near-final) act of the drama. Loral thought they could get what they wanted by going around QCOM and QCOM just showed them that two can play "hard-ball." In fact, I wonder if QCOM wouldn't still be interested in G at the right price.

To: waitwatchwander who wrote (25480)	4/3/2003 9:42:47 PM
From: verdad	Respond to of 29986

Don't forget the fact that QCOM somehow negotiated a cost-plus COMMERCIAL contract in the private sector and essentially loaned themselves money to do R&D. It's been pointed out that the IS-95 switches in G* gateways were of the same design that QCOM used in their first terrestrial networks. So, essentially, some speculate that QCOM was doing switch development for their terrestrial networks under the G* contract and billing G. Might explain why there were sizeable* cost over-runs. Nothing illegal, just creative. Why would G* put up with it? Guess it was that old CDMA magic and the belief that there was a sizeable market for a LEO voice network. Legally, their hands may have been tied. The increased revenues definitely made both companies appear to be growing and temporarily helped boost equity prices. But the overruns may have become contentious and helped further erode relations between the companies as the market never materialized. Verizon meanwhile, did not want to take on the cost of promoting a product that did not show sufficient subscriber usage patterns to justify costs of customer care. Basically, no one wanted to pay for marketing when it appeared all previous entrants into the marketplace had failed. It's those agreements people make, knowingly or unknowingly that makes these large contracts unwieldy.