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To: marginmike who wrote (30040)5/14/1999 10:46:00 AM
From: DanD  Read Replies (2) | Respond to of 152472
 
Don't you think MOT will bend over super backwards to avoid bankrupcey of IRID. That would be a huge public relation feasco, and face loosing experience.
Dan D



To: marginmike who wrote (30040)5/14/1999 1:01:00 PM
From: Gregg Powers  Read Replies (5) | Respond to of 152472
 
Marginmike:

You are being too simplistic with you bankruptcy assumption. What needs to be understood is whether Iridium's problems derive from a short-term financing/liquidity issue, i.e. they ran out of money before they could ramp the service sufficiently to achieve self-sustaining operating cash flow OR a structurally flawed business model. The business model is dependent on the cost of service delivery, the quality of the service, the cost of network support, operating and maintenance and the overall demand for such services. Technology is a significant factor.

GSTRF has a different business model and is a lower cost service, so...as I have often commented with regard to ATT Wireless...what would you pay for the world's most INefficient minute factory? If Iridium has a material and structural fully-loaded cost-per-minute disadvantage versus GSTRF (and others) it may be toast regardless of capitalization.

All the best,

Gregg



To: marginmike who wrote (30040)5/15/1999 12:11:00 PM
From: JGoren  Read Replies (2) | Respond to of 152472
 
marginmike, you are exactly right. I have been posting for months (Lor and G* threads) that the thread to G* is a restructuring-bankruptcy of I* by which its cost structure is reduced and it can compete favorably with G*.

But, the big question is what Gregg posed. Given the technology, etc. can it compete regardless of whether it's debt is reduced or eliminated.


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