Samsung and LG in fierce competition for 2.5G, 3G mobile telecom system orders
By Lee, Eun-yong
Tuesday, June 26, 2001
Samsung Electronics and LG Electronics are intensifying the competition for
2.5G (generation) and 3G mobile telecom system orders.
In particular, the two companies are prodding each other to work harder as
Samsung Electronics is speeding up the development of the asynchronous 3G
system while LG Electronics is reinforcing sales operations for the synchronous
2.5G system.
* Samsung Electronics leading asynchronous 3G
A source from SK IMT, who toured the sites of telecom system makers for
next-generation (IMT2000) equipment development, said, "Samsung Electronics
seems to have shorten the development time for the asynchronous IMT2000
system." "It is even likely that the company might catch up with LG Electronics,"
he added.
The electronics maker is making all-out efforts to complete the development of
the asynchronous 3G commercial system by October next year, for instance, by
hiring experts in a large number.
In a response, LG Electronics said emphasizing the competitive advantage, "It is
a well-known fact that we are moving fastest in the asynchronous 3G system
development among domestic makers."
The first round of the asynchronous 3G competition between the two will decide
a winner throughout their bids for KTIcom equipment orders. The telecom
operator plans to soon pick up 4 system providers (2 at home and 2 abroad) for
its equipment performance tests and select final 2 (1 at home and 1 abroad).
In this regard, the two companies are poised to engage in keen competition for
the single domestic spot.
* LG Electronics strikes back with synchronous 2.5G
Samsung Electronics has won synchronous 2.5G (cdma2000 1x) system orders
from SK Telecom and KTF, except LG Telecom. LG Electronics has failed to win
orders from the two telecom operators since it is the largest shareholder
(33.1%) of LG Telecom.
However, the circumstance has recently changed. As the 2.5G equipment
supply to SK Telecom has delayed, LG Electronics might be able to enter the
scene as an alternative.
And the company has started courting SK Telecom to win 200 billion won-worth
synchronous 2.5G system orders for the telecom operator's service in the
Gyeongnam region. It also works in favor of the company that SK Telecom and
KTF are gearing up to enhance its adma2000 1x service.
So far, it has beefed up synchronous 2.5G sales operations, supplying
cdma2000 1x equipment to the North American market following a failure in
China. And it draws keen attention whether such efforts will bear fruits by taking
over Samsung Electronics who is leading far ahead.
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