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


To: Geoff Goodfellow who wrote (28561)4/18/2012 8:32:39 AM
From: Jeff Vayda1 Recommendation  Read Replies (2) | Respond to of 29987
 
Way back when, during the Bernie years, one of the exciting ideas for G* (for me alone as it seems) was the ability to plop a base station (phone booth per se) down in a drastically rural area and serve the entire community. Easy peazy no need to wire the whole countryside. I thought India alone could prove the business model. Besides the tandem of the absolutely incredibly corrupt nature of Indian Telecom, and the obvious need for ice water in hell – what could derail the idea? Well twenty years on, looks like the third rail for G* has been identified

From TMF Associates MSS blog

tmfassociates.com

“Remarkably, in the last six months of 2011, an all-time record 26,465 cell sites were added in the US (an increase of more than 10% in just 6 months) despite the fact that wireless capital investment by the carriers during 2011 was up only 1.7% on 2010. Thus it seems pretty clear that deployment of new (small, lower cost?) cell sites for capacity enhancement is working very well to accommodate increasing amounts of data traffic, without imposing any significant burden on the wireless operators. Indeed, with the operators apparently able to include on-net WiFi traffic in the data they report to CTIA, as AT&T is probably doing, the need for more licensed spectrum may be reduced even further.”

The only way for G* to survive and prosper is to under cut the rates of the majors – significantly! They are drinking the ice water and peeing on the rail if they think they can charge comparable rates as the cellcos.