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

To: Valueman who wrote (629)	3/30/1998 6:11:00 PM
From: Larry L	Read Replies (2) \| Respond to of 29987

Valueman: Come on, you can do better than that. That article was for pricing by Iridium Japan only. It in no way reflects cost or pricing by other service providers. Iridium Japan recently projected a breakeven date of early 1999, much earlier than originally anticipated. Perhaps this much higher price reflects greater demand rather than cost?

To: Valueman who wrote (629)	3/30/1998 7:06:00 PM
From: dougjn	Respond to of 29987

I think the NYTimes article was misleading on the pricing differences between G* and I. Here's why. I assume for the moment that the article was absolutely accurate on current indications of the I and G* prices which it discussed. The trouble is the example chosen. Call from Kazakstan to NYC at peak calling times. That represents, essentially, a peak long distance price for G* (which came in only a bit lower, "before retail markup") and a generally applicable price per minute for I. Which is to say that the long distance add on for the G gateway to NYC link are very high here. But very many mobile phone calls are local calls, or at least regional calls. Even when outside well served areas. One calls to confirm meeting times. One calls local colleagues to co-ordinate. One calls to make reservations for things, etc. One also calls back to the office and back to the home. But the point is there is a mix. And that is for the most long distance intensvie market, which the Times article highlighted. The traveling exec., and the expat doing business with the rest of the world. Doug