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

To: Leslie G. Pell who wrote (593)	3/29/1998 5:16:00 PM
From: Maurice Winn	Read Replies (1) \| Respond to of 29987

Fair enough Leslie - maybe they aren't depending on the global business traveller if they say they aren't. But why not? I have read a lot of stuff on Globalstar and I can't recall anything which suggested they won't sell to business people. Their emphasis has been that there is a huge unserved market in the third world and they plan for that to provide a lot of income. Not that the business world wouldn't also be interested. Do you have a url or annual report reference or somewhere which actually says they won't supply service to business people [who of course can disguise themselves as poor people, farmers etc if they want the service] or is this really just an urban myth which has been deduced, incorrectly, from the emphasis on the third world? You cite the Washington Post site. I didn't sight this, but take your point that prices are coming down slowly for the international legs of calls. But we need to think about 4 years from now, when Globalstar really hits paydirt in terms of subscriber numbers. By then, much of the terrestrial pricing and carrying mess will be sorted out and because the long run marginal cost of another call is near zero, that is where prices are heading. Profits will incite competition on long distance. That means reduced prices. Which are already down 80% [here anyway] from just a few years ago. With drops continuing. My ex-neighbour [neighbor = USA speling] was International Sales Manager for Telecom New Zealand. He said their problem was "to manage prices down". Avoiding collapse, while holding the line more or less against competitors. To see where prices will go - check the costs of fibre, switching etc and the increasing level of competition. Just my insight, Maurice

To: Leslie G. Pell who wrote (593)	3/30/1998 8:04:00 AM
From: Leslie G. Pell	Read Replies (2) \| Respond to of 29987

Maurice: You are absolutely correct. All cost elements of the switched telephony minute are decreasing. some faster than others. You are also correct in saying that long distance rates are coming down. But, this does not apply to international rates. I agree that Globalstar will target the business sector, just not the business person who travels extensively across borders. At least initially. After 2 years of great fixed service adoption, and average mobile adoption, it is my bet that Globalstar would change strategies and go after the mindless executive who has never seen a phone bill, and never wants to.