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

To: David Wiggins who wrote (3130)	2/25/1999 2:21:00 PM
From: mmeggs	Read Replies (3) \| Respond to of 29987

Bullish release from G*: By Steve Rhinds PARIS (Dow Jones)--U.S.-based Globalstar Telecommunications Ltd. (GSTRF) expects to break even in its first year of operation, and remains on track to begin commercial operation of its satellite network in October 1999, company officials said Thursday. "We expect to reach the break-even point in the first year of service," said Globalstar spokesman John Cunningham, adding that the company will launch its digital communications service in the key revenue territories of North America, Latin America and Europe. He declined to give any detailed figures. Globalstar Field Director for European Markets Frank Guinard confirmed that by October, Globalstar will have between 40 and 42 of its 48 satellites in place, offering a worldwide digital communications service, despite losing 12 satellites in September 1998 when a rocket failed during a launch. Guinard said the rocket failure pushed back the start-up date for the network to autumn from summer as originally scheduled, and estimated the subsequent loss of revenue at $700 million. The cost of the satellites - valued at $15 million each - was covered by insurance. He said funding for the $3.26 billion start-up cost of the satellite network is now fully in place, but the company will need additional funding to cover the first year of operation. This will be covered partly by the sale of $350 million of preferred stock, and Guinard said 42%-shareholder Loral Space & Communications Ltd. (LOR) will return to the market to raise a further $575 million. Globalstar is aiming to have 3 million subscribers by 2002. Exclusive rights to the Globalstar service are held by different distributors worldwide which then sign agreements with local telecom companies. In Europe, Elsacom - a unit of Italy's Finmeccanica (I.MEC) - is the authorized distributor for Central Europe and Scandinavia, while France's Tesam - 51%-owned by France Telecom (FTE) and 49%-held by telecoms equipment supplier Alcatel SA (ALA) - covers France and Belgium, and also holds the Globalstar distribution rights for Latin America, excluding Brazil. Vodafone Group PLC (VOD) holds the rights for the U.K., South Africa, Greece and Australia. Potential Market Of 30 Million Subscribers Guinard estimated the total potential market for satellite-based phone services at 30 million subscribers, but said Globalstar is currently only targeting 10% of this market. Its main competitors are Iridium World Communications Ltd. (IRIDF) and ICO Global Communications Holdings Ltd. (ICOGF). Together, Guinard said, the three companies' combined capacity would only cover 50% of the potential market. "I think the market is big enough for three satellite companies," he said. Between now and the October launch, Guinard said Globalstar will be concentrating on plugging the few license holes that remain in its worldwide network - notably Libya, Algeria and some parts of Africa - and carrying out market test demonstrations. Globalstar is a partnership of several telecoms service providers and equipment makers including Qualcom Inc. (QCOM), Alcatel, China Telecom Ltd. (CHL), Dacom Corp., Daimler-Benz AG (G.DAI), France Telecom, Hyundai, Vodafone, and Loral Space & Communications. -By Steve Rhinds +33 (0) 1-53-00-03-10; srhinds@ap.org (END) DOW JONES NEWS 02-25-99 12:20 PM

To: David Wiggins who wrote (3130)	2/25/1999 10:33:00 PM
From: brian h	Respond to of 29987

David, Count me in to support G. I am in at the last moment again today. FCC Votes for Speedier Approval of Satellite Phones (Update1)* FCC Votes for Speedier Approval of Satellite Phones (Update1) (Adds background in paragraph 5; updates share price.) Washington, Feb. 25 (Bloomberg) -- The U.S. Federal Communications Commission voted to approve a plan to help satellite-phone companies get the international regulatory approvals they need to do business worldwide. Companies such as Iridium World Communications Ltd., Teledesic LLC and Globalstar Telecommunications Ltd. are building global satellite networks so customers can make international phone calls from anywhere in the world. Satellite-phone manufacturers such as Motorola Corp. increasingly need quick regulatory approvals to compete in international markets. Dozens of countries, including the U.S., the European Union countries and Japan, have agreed to automatic approval of satellite phones that have been cleared by another nation that's part of the agreement. The FCC's proposal would allow the U.S. to give the automatic approvals and helps ensure that international travelers won't be fined or have their satellite phones confiscated by customs agents. ''This is a very major step forward in trying to make global communications work for the consumer,'' FCC Commissioner Susan Ness said. The plan would be subject to public comment before becoming final. Iridium's shares fell 1 1/8 to 27 7/16 in early afternoon trading and Globalstar's shares fell 11/16 to 14/12. Separately, the FCC postponed consideration of a proposal to begin auctioning radio airwave licenses that companies like Boeing Co., the world's biggest aircraft maker, use for internal communications systems -- a network used by workers in a particular factory, for example. Brian H.