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Im making a few assumptions here. But obviously the cost of...

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hcp123

91 Posts.

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27/07/18

09:00

Post #: 34587342
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Originally posted by aniesbaswedan ↑

“Its been unprofitable to provide services to these areas up til now. I think the point you are missing is that SAS can provide such a low cost system that it changes the game.”

What makes you think that it is profitable now? The same people are still without connections because local telcos never see them as profitable enough to provide services to. SAS has no capability to change the game at all because SAS is absolutely reliant on those same telcos to run their services through the nano-satellites in order to generate any significant revenue. If those telcos do that then they would have to pay extra fee to SAS that would then make the whole venture even more unprofitable. Voice and text messages are not profitable anymore and all the profit comes from growing data usage and demand. Something that the pearls would no doubt be incapable of being commercially viable at.

It needs to be reiterated that the pearls would be nothing more that virtual mobile comm. towers in space. Think, terrestrial mobile comm. towers operators, how do they get revenue? When telcos run connections through them. Telcos then pay fee per whatever quantitative measurement agreed upon. SAS has no ground network nor any spectrum. So what happen if SAS could not secure any commercial contract with local telcos? NO REVENUE.

“In the bigger cities basically everyone has a mobile phone. Connecting the rest of these countries with phone and text services has huge potential alone. Plus the IoT applications.”

It seems that people are confused as to what IoT is. It absolutely requires connections to the internet and that is why it is even called “internet” of things. IoT is all about devices connected to each other and interact with one another using the internet. The process is very simple in that a device uploads data into a hub, server or other intermediary VIA THE INTERNET, which can then be downloaded and interacted with by another devices, the changes then get reuploaded and so on. All of that needs the internet with no chance of bypassing the use of it. No internet connection, pearls = space junk and for that reason SAS MUST, MANDATORY, have commercial agreements with telcos that OWN THE SPECTRUM and the ground network.

In the bigger city everyone has phones? Absolutely. They are already well served and SAS would be absolutely useless there, which is why impoverished communities is the only option for its customer base.

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Im making a few assumptions here. But obviously the cost of putting up towers all over the country that will service a few local towns and villages each is not cost effective.

SAS will have a system that covers quite a large area. I havent looked but it must be 20, 30, 40 countries? If the cost of the system is shared accross 30 different countries (just a round number for an example) and even just one telco in each country, then the cost to each country or area is quite low and why they can open up new markets. This is how I understand it. If Im wrong I would definitely like to be corrected please.

SAS Price at posting: 7.9¢ Sentiment: Hold Disclosure: Held
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