All great questions and yes agreed, so many factors that we...

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firehound

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22/05/18

20:02

Post #: 33258513
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Originally posted by craigvn ↑

So I re-read the announcement again to see if I could read into it in the same way you were. I came to the conclusion that I was looking for something that was not there.

If anything I think Mr Palacios is saying that the full constellation will be a force to be reckoned with in the market.

The idea of chipping in some coin is cool though, but at what expense. I think the negotiations are going to be tough. I think SAS well want both the 10% of the un-serviced market as well as a slice of GlobalSats existing IOT/M2M market. GlobalSat will obviously want to expand their markets but will have a balancing act to follow considering their seemingly close ties with Inmarsat and leosat. There is definitely some overlap. Inmarsat could also start putting some pressure on Globalsat.

There also needs to be a fair amount of discussion on how to expand into the un-serviced market. Does SAS just say here is the data now you find the clients, or will SAS play a more active roll as hinted with beeptool.

Does SAS have the opportunity to secure some up front payments or a minimum data and device purchase per year?

Is there some sort of discounting scheme for volume of data/devices.

So many factors, probably more than my simple mind can cater for.

What ever the deal, I do hope they are able to provide some sort of numbers for us measure against.

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All great questions and yes agreed, so many factors that we probably won't find out. I will be interested to see if the deal was like the last two how the market reacts or if it will be different in some way.

I think some more information regarding funding to alleviate our fears would be good.

I'm wondering how much negotiating power SAS has now in terms of the future value of the product they will have once the pearls are up. I think at the moment I hold negative sentiment around our minimal funding and whether this is a crutch or just a me percieving it this way for any negotiations we have I.e. We are in a corner or not. Or the future value of the product is that of everyone will want a piece of the pie and SAS can be stubborn and say we can go it alone if they don't get a favourable deal or someone else will jump in.

SAS Price at posting: 10.5¢ Sentiment: Hold Disclosure: Held
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0 Great analysis

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