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

To: DoctorEvil who wrote (4890)	5/26/1999 1:49:00 AM
From: Maurice Winn	Read Replies (2) \| Respond to of 29987

DEvil, thanks for a good find! A shame that Globalstar/Qualcomm are dragging rather than leading. They have the absolutely perfect product to do it [auction pricing to maximize revenue and profit]. They have an instantly perishable product [minutes] with a personal computer attached to those minutes with a central link, the gateway, as the pricing computer. There is no better candidate than Globalstar for this pricing method. What is amazing is that the wireless industry seems unable to figure it out other than some coarse peak/off peak deals or bundled minutes. I put it down to decades of Telecom monopoly culture [for many of them], defence and aerospace government and systems type backgrounds with no real, 'wrestle them in the mud' Feral Marketing experience, plus being on average 65 years old. They could make a fortune but are thinking in terms of a nearly decade old business plan with a very, very gradual buildup of customers with the price set on a centrally planned economy basis with a Five Year Plan [probably stolen from Russia by the CIA spies who missed noticing the Chinese Embassy]. There will be about 10,9,8,7,6,5,4,3,2,1 bn minutes spill to waste in the first few years of operation. That's 50 or 60 bn minutes, with a street value of about $20bn at only 50c per minute retail price. Quite a large opportunity cost if you ask me. Not that anyone has. All it would take is a pricing algorithm for each gateway and the software in the handset to run it. I'm sure some software engineers could battle with the concept and figure it out. Airlines, Operas and others have a nightmare job to price their stuff because there are real things to cart around, delays built in and to perfectly price it is near impossible. Such a problem doesn't exist with Globalstar which could be perfectly priced always. Starting from now. They don't need market research to calculate price elasticity. Their gateway demand will tell them what's happening and the algorithms can be adjusted accordingly. Thanks again, Maurice PS: On reflection, to sell the minutes really fast would take lower retail prices than 50c retail, so let's cut the opportunity cost to about $10bn, which is easier to remember too. But then, the system would be full after only 4 years, so the market price would zoom back up to 'the invisible hand' pricing level, so I guess it might be a $40bn opportunity cost. Well, somewhere in that range. Somebody with a spread sheet and graph paper can work it out.