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Technology Stocks : Loral Space & Communications -- Ignore unavailable to you. Want to Upgrade?

To: JMD who wrote (2463)	4/3/1998 4:02:00 PM
From: dougjn	Respond to of 10852

I think the market read on second generation constellations is a bit more complicated than you've laid out. Esp. for I*. I imagine that what with CDMA increasing capacity through better coding and power efficiency, Mot figures its second gen. system will be much cheaper per minute in costs than their first. Also, probably for both, a lot of the sunk R&D of the first system, while needing to be augmented and refined (to get costs down as far as possible), it will not have to be completely reduplicated. Everyone knows there is a lot of demand for universal number sat com service, if it is cheap enough. The debate comes with what is cheap enough. I guess what I am trying to say is that if mot sees a way of decreasing its second generation costs enough, that could make that generation compelling even if the first one is loosing money hand over fist. (And they may just want to get the ball rolling as early as possible, esp. if the market were to later turn bearish on Mot's demand at the price.) Doug