Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: RMiethe who wrote (4409)	5/1/1999 10:27:00 PM
From: Maurice Winn	Read Replies (2) \| Respond to of 29987

RMiethe, underlying your discussion is the concept that Globalstar will 'go after' certain customer types. The concept that Globalstar will decide which customers to 'get'. I'm uncomfortable with that concept. Sure, the marketing approach needs to fit the expected customers so that the most likely customers think 'Hay, you bet I need the Flying Doctor and cattle helicopters on the end of the phone - I can't shout at the bloody things. I'm a starter'. Or, 'Damn straight, when I'm cuttin' an El Segundo deal then cruisin' to Las Vegas I gotta be Da Man and I NEED that SpaceStation phone. Tha's wassup nigga'. Or, 'Cruising to Fiji on the yacht with that aerial on the canopy will be so out-of-it cool. Phone home anytime. GPS on tap. Mayday rescue a moment away. Yep, ship it on over'. But all the hardware is designed and done; the satellites, gateways, phone designs [handset, car, marine and fixed phone box]. There will be a mix of subscribers. We all mention China all the time, and that is fair enough since they have got a rapidly rising GNP per person. As you say, it's a wild card. But they do want phones and they have got a lot of money, so it isn't that wild. We don't want particular customer 'types'. We want customers who will pay the most for the phones and minutes. The only way to find out who will pay the most is to ask them. We don't need 'waiting lists' for handsets. We need sales to the high bidder. If Globalstar has bought the handsets and is going to onsell to the service providers, sell them to the highest bidder. None of this waiting list nonsense. Dell sells a lot of stuff at high margins and they do it on the Web. There is no need for ANY waiting list for handsets. Anyone who wants one should be able to buy one immediately. They would just have to offer the most money. We make money from being paid, not from organizing waiting lists. You said: //Globalstar is not going after the relatively well-off (as opposed to the super rich)--unless by relatively well-off you mean income of, American dollars, $57,000/year. For that is the user base income profile of the average waiting list individual for a Globalstar phone.// Do away with waiting lists! It seems that Globalstar marketing is already off on the wrong track. 'Choosing' customers, building waiting lists, losing money by letting tomatoes rot in space, letting ICO and Ellipso think they have a chance. All subscribers are good subscribers. All we want is the high bidder. Sure, advertize in the right place to ensure the high bidder knows to bid! Offer a variety of price plans [call them service plans if you like] such as; Free handset, $200 per month, 10c per minute. $1000 handset, $50 per month, $1 per minute. Spot price handset, no monthly fee, spot price minutes. [Just by way of examples - numbers not real!] Free Trade, Open Markets, What the Market Will Bear, Clear the Market. Maurice

To: RMiethe who wrote (4409)	5/1/1999 10:50:00 PM
From: Andmoreagain	Read Replies (2) \| Respond to of 29987

RMiethe: You have made a number of assertions, including one about your large holdings in Globalstar. You also say you have not verified some of these assertions. Fair enough. But let me ask: How many shares do "you" own? And how seriously should we take assertions based only on "gut"?

To: RMiethe who wrote (4409)	5/1/1999 11:52:00 PM
From: Mr. Adrenaline	Respond to of 29987

Not to be nit picky, but I would say $57K is relatively well off. It's above the mean income of just about any US or world population per household income. But I do agree with your thesis. Mr A

To: RMiethe who wrote (4409)	5/2/1999 12:13:00 AM
From: Valueman	Respond to of 29987

Those government mandates for rural service are present in Canada and Brazil as well, and most likely many other nations. Airtouch will tell you that they are providing service to Canadians under this mandate.

To: RMiethe who wrote (4409)	5/2/1999 7:25:00 PM
From: A.J. Mullen	Read Replies (1) \| Respond to of 29987

Mr(?) Miethe, Excessive formality is often hand-in-hand with thinly veiled offensiveness, don't you think? If you don't think $57K is relatively well-off, then travel a little. Your learning curve will be steeper than at graduate school.

To: RMiethe who wrote (4409)	5/2/1999 8:03:00 PM
From: kitterykid	Respond to of 29987

Well put. I view Globalstar as targeting a barbelled market - the high end (also served, god willing, by Iridium which can ONLY serve the high end) and the low end - the non and underserved markets around the world. It's true that this low end doesn't have a lot of money - some of them may try to stuff a goat into the coin slot - but do remember the HUGE political implications of governments providing initial phone service for tens if not hundreds of thousands of people. Just as the Mexican government subsidizes the tortilla market it will most likely subsidize phone service. It is the fixed phone booth type service that will provide the bread and butter to Globalstar. The high end global roamer will be the honey!