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

To: Dragonfly who wrote (4298)	4/29/1999 5:54:00 PM
From: John Stichnoth	Read Replies (1) \| Respond to of 29987

The $1.50 retail G roaming charge is an airtime charge* Yes, I thought I made that clear. The G* charge is comparable to the cellular charge. My point is that the comparison shouldn't necessarily be between the two air time charges, but between the two all-in charges. I.e., 20 cents cellular vs. $1.50 gstrf is not the right comparison. Instead, $2.20 cellular plus long distance (international) vs. $3.50 gstrf plus international. If we recognize how willing people are to pay $2.20 to call overseas, it is much easier to accept that a portion of them would be willing to pay $3.50. To take it a step further--If someone is willing to pay $2.20 to call overseas, won't they also be willing to pay that same amount for a call domestically (absent convenient alternatives)? To state the issue another way: What is the perceived value added, from the customer's point of view, of being able to make a call (vs. not being able to make the call at all)? I'd suggest that the utility (to use the economists' term) is at least as high as being able to make international calls. Thus, the $2.00 airtime charge is justified in the customer's mind. There is no reason to be scared of a $2-3.00 per minute charge. People are already paying it quite commonly--On their international calls. BTW. What is the comparable Irid charge? I think $7 to Japan is an all-in rate, yes? (I.e., you'd get just one bill, from irid for their stated tariff).