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Technology Stocks : IRID - Iridium World Communications IPO Announced! -- Ignore unavailable to you. Want to Upgrade?

To: haler who wrote (339)	1/4/1998 12:02:00 PM
From: Valueman	Read Replies (2) \| Respond to of 2693

I feel I would be shirking responsibility if I didn't chime in here also. The wholesale rates charged by G* will average $.47, while Iridium will average $2.50. This is because the switching that normally occurs on the ground with a regular call will occur in the satellites with Iridium. With G, the subscriber makes the call, gets hooked into the regular long distance lines via a gateway located within 1000 miles and the rest of the call occurs as if it was a long distance call, including the long distance charges. Iridium believes that they are skipping a number of these charges and thus can charge more. Still, G will cost about 37% less than Iridium, who must also tack on a variety of country tail charges, gateway operator markups, and service provider markups. The $1.00 price you see for G* per minute would apply only to the case where a person is calling regionally, say from one point in the US to another. In this regional case, G* will be about 45% cheaper than Iridium. Another point--as international charges get cheaper, G* stands to benefit more than Iridium, making the price differential even greater. It also squeezes margins for Iridium gateway operators. Satellite life must be taken into account also. Minimum life for G* is 7 1/2 years, Iridium is 5 years. That is a 33% difference--that is significant. Realize that once Iridium turns on service, some of the satellites will already be 20% used. They must immediately start on the next generation, which will eat into cash flow. G* has less pressure to do so.

To: haler who wrote (339)	1/5/1998 9:56:00 AM
From: Larry L	Read Replies (1) \| Respond to of 2693

Haler: Well okay, but only because you are insisting 1.) At this point I will give you the CDMA over TDMA. 2.) I's technical equipment being in the air is actually an advantage for defense department purposes (Less prone to sabotage). This could be an inroad to other government contracts. 3.) I has also announced several alliances with established telcos. I believe that I have pointed this out several times. 4.) I* has never officially announced what their price per minute will be. However, they have hinted at prices as low as $1.50 per minute. 5.) Yes G's handset will be much cheaper. 6.) Without the chips how will G overcome the problem of different systems? I wholly agree with your wisdom in investing in both. However, I am hanging on to both for the long term because regardless of how thoroughly we may have studied these companies and how strongly we may feel that one or the other is much better there is still no telling what the uneducated masses will do. At that point it comes down to who markets it best.

To: haler who wrote (339)	1/6/1998 2:35:00 PM
From: Fledermaus	Respond to of 2693

Haler, Here are some questions on your list in answer to Jon's request. Point 1: CDMA has better quality, yet I always heard it uses more energy than TDMA, is that correct? Point 2: Will the equipment on the ground not be much more prone to "nationalization" by poor countries, than a system in the air? Point 3: If that strategy really speeds up licenses, why does G* have so few licenses so far? Point 4: In Brazil we say that's comparing "garlic with barlic" - two differente prices. Aren't you fooling yourself? Because I dont think I was fooled. Folks in this discussion list seem clever and well informed... Point 5 - We will only know the final price when the product is on the market. I think both companies are trying to fool each other. In Brazil, at least, everybody would buy the 3.000 handset - "the most expensive is always the best". Is it not like that in the US? Point 6 - As a frequent traveler, I would rather change chips than not talk at all with the local system... I am still trying to find out through this list why I should buy Globalstar. I own only Iridium. And buying more.