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

To: ML who wrote (4125)	4/24/1999 12:54:00 AM
From: Maurice Winn	Read Replies (1) \| Respond to of 29987

ML, I don't think Iridium will replace satellites. The system will be used until the satellites die and then be scrapped. Maybe they'll replace a few critical ones to get it to the design life if it fails, but won't fire up another full constellation. Cancel advertising, sack management reduce operations. Operating costs are actually very low. These LEOs are nearly all capital. Yes, of course you'd have to add the tail charges and service provider fees to the price per minute, but these are no more for Iridium than other calls. It's all a bit irrelevant to Globalstar really because there are so few Iridium minutes available and they won't be carrying on to another constellation. This one will be milked by Motorola for what little cash flow they can get and unceremoniously ditched. Maurice PS: I don't get the higher initial price then lower it later. It seems to me it should be the reverse. When the system is empty, cut the price. As it fills, raise it. Then, years from now with Constellation2, lower it again. I listened to all of the conference call and I got the impression Bernie was aware of pricing flexibility they have due to their low costs which implied to me that if need be, they'd cut prices. If need be, means if customers are not rolling up fast enough.