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

To: Maurice Winn who wrote (583)	3/27/1998 5:27:00 PM
From: Valueman	Respond to of 29987

You took the words right out of my mouth Maurice. As international long distance rates fall, G* gets a bigger and bigger advantage. Even as it stands now, G* has a nice advantage.

To: Maurice Winn who wrote (583)	3/28/1998 11:24:00 AM
From: Leslie G. Pell	Read Replies (2) \| Respond to of 29987

As far as the target market statement is concerned, my source is Loral's head of Investor Relations, and Treasurer. Both people have gone on record in a number of settings as saying that Globalstar is not trying to attract the global business traveller. Now, of course, it is entirely up to the local service provider as to which customers they target. But the Globalstar board of Service Providers has an overseer mission to ensure that the vision, and long term goals of the business are upheld. Blah, blah, blah! The Service Providers will ultimately do whatever they want. If they feel like they get the largest bang for the buck (or whatever currency) from the jet-setting executive, that is who they will target. But not according to Globalstar. In terms of long distance pricing, I site an article from the Washington Post from March 16th, "Phone Home: You make the Call". The article asserts that International calling rates are not coming down as fast as MCI or AT&T's pricing promotional advertisements would have you believe. The accounting rate system is still an antiquated mess that is desperately in need of replacement. Until that happens, companies like AT&T, KDD of Japan, BT, etc. have to establish multi-lateral pricing agreements to provide the cheapest route possible for an cross-border call. Tariffs are only part of the story. While they appear to be coming down, in reality the lost usage revenue is being supplemented by surcharges, and time of day and destination restrictions. These are all huge concerns for any telephony carrier hoping to target a cross-border telecom market.