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

To: Rocket Scientist who wrote (4882)	5/24/1999 10:55:00 PM
From: Maurice Winn	Respond to of 29987

True enough RS, 20% discount on Iridium prices [old or new] will be enough to get most customers to choose Globalstar, but my central theme is that to generate the millions of subscribers needed, we need to compete with price elasticity equations, not Iridium. Iridium is technically a competitor but has such a limited system that it is not significant, having just over 1 bn minutes per year available compared with 30bn from Globalstar and ICO alone. Then add in the Hughes and other systems and Iridium minutes pale further into background noise. Globalstar needs to price minutes to optimize revenue, which means selling billions and billions of minutes, even if there are NO satellite competitors. That means cutting the price to generate sales and give Service Providers some serious incentive to wake up. For example, in New Zealand, no Service Provider is currently ready to build a gateway. With the right minute price for a year or two, the gateway would be ordered tomorrow. But no, Globalstar would rather keep the gateway back in the warehouse and the minutes flying over the top, unused, generating zero revenue. It doesn't sound like Feral Marketing to me. Maurice