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: Timothy R. Tierney who wrote (4745)	5/20/1999 1:16:00 AM
From: Maurice Winn	Read Replies (1) \| Respond to of 29987

IF G* is a distributor to the telcos and they lower their price per minute from 50 cents to, lets say, 30 cents, what is to prevent the telcos from scooping up the difference by not lowering their price to the consumer? Isn't it the telcos that control price and not globalstar? G* has to have a somewhat attractive price in order to encourage the telcos to promote it. But ultimately its the telcos that raise or lower rates. Timothy, true enough, but the Service Providers are competing with each other for the available minutes, so if one of them leaves their price high, they'll sell fewer minutes and gain fewer customers. Then, in a couple of years when Globalstar puts the price up to match supply with demand, the slow Service Provider be left high and dry with few customers. The other Service Providers will have the customers and the profits. If ALL the Service Providers leave their prices high, they won't sell many minutes and neither will Globalstar, but the Service Providers will lose their exclusivity on the region. Globalstar can't lose by cutting the price. There you have it! Maurice