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

To: pcstel who wrote (26988)	5/8/2009 5:39:53 PM
From: Maurice Winn	1 Recommendation Read Replies (1) \| Respond to of 29987

That is largely true commentary, but there is a correction required: <In Globalstar's case. They had to largely subsidize gateways, and all the user terminals to enable revenue generation. > Paying for the gateways was understandable, though unnecessary. I was happy to buy a gateway for NZ and buy thousands of handsets too. But the gateways, aka Exit 1, should have been owned and built by Globalstar. There was a condition to me buying a gateway which was that I get free minutes/megabytes until the satellites were full. Globalstar was NOT interested in that idea. I would have sold the handsets for $3000 or at auction in cyberspace for what the market would bear, and given free minutes/megabytes to subscribers. It was simple economics = managing supply and demand. There was a shortage of handsets and a huge surplus of minutes/megabytes. The traditional way to solve a supply and demand problem, going back thousands of years, is by auction in a market with the top bidder getting the next available item. If there is a glut of perishable tomatoes [minutes/megabytes], the bids are low and people gobble thousands of them. If there is a shortage, people bid high and have them as a delicacy. The same situation will apply to the new constellation. Make the money on the devices, give away the minutes/megabytes free. When the satellites and gateways are getting too busy, start raising the price until supply and demand are happily balanced. Then, if the balancing price shows it's a great business, start launching rockets one a month until the sky is full or the megabyte price drops enough that no more satellites are needed. People are right now ready and able to buy SPOT, transducers, cyberphones [with Skype pre-loaded] and they'll do it on TradeMe, eBay, Amazon etc. Millions of people are ready and waiting for the right price, cash on hand. Mqurice