Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Valueman who wrote (322)	2/4/1998 1:40:00 AM
From: Maurice Winn	Respond to of 29987

"Claims by another poster on another board about "pricing", the free market, and G* not having an adequate grasp of how to fashion its call structure is also nonsense. Poster states "market prices calls"-- like he is the only one who knows this." Quoth Readware. Well, that is not very powerful analysis. I wonder if he actually has any evidence that they do know how to price calls and handsets. I guess he doesn't think he needs to justify or explain their inflexible "Kremlin" based pricing system. Any AOL acolytes out there want to see if Readware actually has any basis for his assertion? I've made a lot of points on the issue and given lots of explanation. John Cuthbertson has given the only basis for objection, namely that USA requires price plans to be submitted and approved. Fair enough objection; if they decide to they can make Globalstar pricing whatever rate they like, set Janet Reno onto the Globalstar cdmaOne monopoly in space a la Microsoft and force them to do anything they like. But they aren't really likely to do that. So at present it remains the case, on the eve of the launch of the first satellites, that pricing, in my well-reasoned, intricately explained way is up the booeye. A technical term meaning they have used a military analyst's approach to pricing instead of a customer-led [to use some jargon which makes me feel ill but might make them feel comfy] approach. It's really lucky that they have a huge lead over other competitors, that they are likely to find massive demand, and that Iridium won't have the wit to compete effectively. It sounds as though what I've been saying is total nonsense, so it should be really, really easy to point out my errors. I'm waiting. The gratuitous comment that "...he is the only way who knows this" is not much of an answer. What I know, don't know, stupid or ugly, live or die is irrelevant to Globalstar. He needs to explain Globalstar, not me! Meanwhile, I have other things to do. Back in a few days [well, I'll be here until Sunday]. By the way Bennett, I'm also in the camp which thinks that demand and profits are going to be beyond nearly everyone's expectations. I don't really think they'll have a half-used system half-way through satellite life as per their slothful business plan given their announced pricing intentions. I think like the rabid analysts, that the demand will blow Globalstar's socks off and handsets will be rationed or the price will go up. Or they'll put their per minute price up. At least it is better to have an embarrassment of riches than an empty system. But they are going to have the problem then of telling people - "Oh yes, we did sell you a phone, but sorry, the satellite batteries are flat or demand exceeds the wiring available so we have to leave you disconnected or drop your calls. Thanks for buying the handset though. Oh, your boat is sinking? Bummer!". Unlike terrestrial systems, they can't just plug in a bit more capacity [see the details I posted on that issue]. Maurice