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

To: Robert Scott who wrote (3800)	4/8/1999 4:25:00 AM
From: Maurice Winn	Read Replies (1) \| Respond to of 29987

* Globalstar capacity * Check out the Gilder thread 127.0.0.1:3456/SI/~wsapi/investor/reply-8771649 over the past week, it is full of Globalstar [and Qualcomm]. They'll be getting sick of it. Gilder is interested in Qualcomm especially and hopefully he'll comment, but he isn't writing much. Meanwhile Globalstar has about 12 billion minutes a year to sell, but because of inefficient management, they'll never get near selling that many. They'll not get past 50% capacity without a good minute management plan. Old hands can read in the "CURRENT PRICE IS ..." diatribe here. Globalstar figures they can have about 6 million subscribers. But that will be a very approximate figure depending on the proportions of fixed and mobile terminals and the pricing they set. They can increase capacity really easily. Firstly, they can manage the minutes, which will increase the capacity and the profits as well as customer satisfaction. All that would take is a bit of software. This will be hard for them to accept because it involves relinquishing control from the HQ 6 Star Generals and the Five Year Plan and going to Peripheral Processing [TM] which will take some conceptualization as it is not normal - even though most people seem to understand how the stock market works. It is not a 'military' or 'big company' way of thinking. New things don't go down well with either. Capacity would be increased because customers would defer their non-urgent calls for a while if they were peaking at a high price. If we think of 'capacity' as how many satisfied customer-minutes are sold instead of instantaneous capacity we'll get nearer what we are really looking for. Minute management via Peripheral Processing is the best way to handle increased demand. Once they've done that, they can also increase capacity with new satellites. Of course first of all they can plug more gizzards into gateways, but let's assume they've done that [Valueman gave the numbers a couple of posts ago]. They can just launch another constellation at a lower level without worrying about spectrum. Because of the clever soft handoff from Mighty Q! the satellites will just agree among themselves, the gateways and handsets as to which Babe will handle which call. Handsets will be turned down in transmit power because they won't have to transmit so far. This will boost capacity too by reducing the noise level which allows more handsets to operate in a given amount of spectrum and allows handsets far away or with an attenuated signal to make contact. "Babe" = the name of the Gateway base stations. More gateways would increase capacity too by reducing average propagation lengths and therefore handset output, which reduces noise as mentioned, which is a capacity limiting problem. Capacity is no worry. CDMA by Q! is highly scalable [I think that's the jargon and it's nothing to do with hagfish, which have hide and slime, not scales]. As Globalstar capacity increases with new constellations, the cost per minute will reduce substantially - maybe by 50%. Those crazy ICO people better take note of that before they get overly excited about launching some more satellites. Launching is fun, but it doesn't make money. But I guess they don't care about that. The government employees just want their jobs as does the prime contractor. If they can get sucker shareholders and lenders to finance it, then it is a great boondoggle. They say there's one born every minute, so maybe they'll get their funding. But they better plan on getting about 5 cents per minute because Globalstar will be selling their minutes at whatever it takes to move them and Constellation2 will be that cheap [if necessary to get the customers]. Maurice PS: I don't know about WCOM. They can't have my shares. But they can buy some handsets from me.