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

To: djane who wrote (3198)	2/27/1999 9:37:00 PM
From: Maurice Winn	Read Replies (1) \| Respond to of 29987

Well, since you posted it, let's see if we should panic. 12 bn minutes x 10 cents per minute = $1.2bn per year. Operating costs are small, so we get $1bn per year profit. Capital cost of the whole kaboodle might be $4bn including interest over the next year or two. $1bn profit looks okay for a $4bn investment. Then we launch Constellation2, 3 and 4. Revenue zooms up to 50 bn minutes x 10 cents = $5bn per year. Operating costs are not much bigger, so we get nearly $5bn per year profit. Constellation2, 3 and 4 will be less than Constellation1 to build. Gateway costs will be way down per satellite as they become mass produced. Same for satellites. Total capital will be about $10bn so we make $5bn on $10bn invested. I guess I can live with that too! Okay, deduct a bit for depreciation as the satellites only last 7 years. 10 cents a minute is CHEAP!!! We might even have to put the price up a bit to keep demand manageable. We might optimize profits by reducing the price to 5c per minute to stimulate demand to crazy levels so we then launch swarms of satellites at 600 km and take over from terrestrial services. Looks okay to me. Meanwhile, I'll be raking it in from Qualcomm too, because they'll be selling HEAPS of handsets. Especially as nobody will want the silly GSM/Globalstar models when GSM is replaced with WWeb CDMA networks and Ericy isn't licensed to produce the CDMA models. Not much anger and desperation here! Sure, we need to add Service Provider charges to the 10c per minute as well as 'tail' charges to carry the call around the world through fibre. So total call prices might be 22c per minute to the subscriber. I think that will get a LOT of takers. Especially since Europeans are paying over 40c per minute for GSM terrestrial service with holes everywhere. Maurice PS: Europe won't cut prices to stop us getting a bit of business!

To: djane who wrote (3198)	2/28/1999 12:02:00 AM
From: djane	Read Replies (1) \| Respond to of 29987

Couple nice responses to short on yahoo thread [Okay, who wrote it, c'mon on...] Top > Business and Finance > Stocks > Services > Communications Services > GSTRF (Globalstar Telecommun.) LAST VISIT TO THE TEENS! by: MACROTIME 4490 of 4490 It is hard to believe that anyone, with even a minimal understanding of the evolutionary process, really thinks that satellites are not going to produce the next wave in telecommunications. The only reason G* needed its strategic cellular partners was due to political and liscensing considerations - the backing could have come from elsewhere. The cell companies know full well that a company like G, over a ten year period, could strike a knock-out blow. Imagine a phone that works anywhere on the planet - no interruptions period. Terresterial cellular networks cannot be expected to compete with that over the long run, so of course they want to be partners, and the combination of Vodafone and Airtouch is a powerful one. As for Irridium, they were the pioneers, but their vision of satellite to satellite communications was just a little ahead of its time, although that may very well be the standard in twenty years. In the mean time, G, using relatively cheap satellites as a simple "bent-pipe" and a gateway as a way to recieve the signals, can service very large areas with relatively few gateways. G's gateways are accessible for repairs - Iridiums satellites are not. The G plan, with the CDMA technology is brillant, the execution to date has been flawed but that has now been corrected and soon the stock price will reflect the huge potential of this system. While voice telephony will be its main business through mobile and fixed phones there will also be paging, facsimile, messaging and other data services, remote monitering, position location and who knows what else will evolve. The danger at the price the stock is currently trading at is not owning it - the potential is amazing! Posted: Feb 27 1999 11:28PM EST as a reply to: Msg 1 by YahooFinance ____________________________________________________________ Top > Business and Finance > Stocks > Services > Communications Services > GSTRF (Globalstar Telecommun.) DoDoFeaster by: bbigtim 4489 of 4490 You claim to have been shown detailed plans for a fiber-based alternative to GSTRF. But since GSTRF is based on a "bent pipe" configuration, which uses multiple ground-based gateways and can take advantage of fiber whenever and wherever it is available, the key idea behind your concept that GSTRF is not cost-effective is the buildout of cheap ground-based wireless in those areas served by fiber. I don't agree with your premise that fiber will be built out sufficiently to approach many of GSTRF's target markets during its anticipated lifetime. But I would like to understand the technologies you believe will be used to introduce cheap ground-based wireless where a fiber connection is available. Can you elaborate on this. How can this work in thinly populated or mountainess areas? Also, since many facilities as opposed to a few gateways will be required, what will protect the fragile infrastructure from theft and vandalism? Electrical fences? Armed guards? I greatly doubt you are right about GSTRF (IRIDF is already moribund in my view), but since my positions in IIXC, WMB, and GBLX are in the aggregate much larger than my positions in GSTRF and LOR I am reasonably well hedged against your scenario anyway. That is, unless the current bargain prices tempt me to expand my GSTRF position further. Posted: Feb 27 1999 10:14PM EST as a reply to: Msg 4487 by launch_nerves