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

To: Pierre who wrote (2775)	2/4/1999 1:22:00 AM
From: Maurice Winn	Respond to of 29987

Pierre, Globalstar has indeed off-loaded, devolved and otherwise peripheralized the marketing of minutes and handsets to the regional carrier partners. I don't think that the local provider guarantees to buy a certain number of minutes so if few minutes are sold, Globalstar won't get money. Globalstar also leaves it to the regional providers to build gateways. So the risk is carried my more than Globalstar whereas Iridium carries the lot. But Iridium makes all the profits too, if profits occur, whereas Globalstar only gets the 45 cent wholesale minute money [more or less depending on discounts etc]. The Globalstar wholesaling approach also makes sense in that people like to have just one account. They would like local calls, cellphone calls and Globalstar calls all on one account with one piece of equipment [if it isn't too big]. If there is a problem with something - they know who to blame! As you say, there is already terrestrial marketing, so piggy-back on that - send out a Globalstar service offering to all cellular accounts with more than $1000 a month in calls, or something like that. The marketing cost in getting a new customer is serious stuff. To set up parallel marketing networks as Iridium is doing is expensive. I think you have it spot on! Maurice