Announcement on Method for Selecting IMT-2000 Service Providers
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by Kim Jung-wook
(6/26/2000)
It appears that service providers for the next-generation image mobile telephone (IMT-2000) will be selected through a combination of business proposal deliberations with aspects of an auction.
On June 26, Information and Communication Minister Ahn Byung-yub disclosed at a meeting with the ruling party and following this a standing committee meeting of the National Assembly, "Industry insiders prefer three operators for IMT-2000 service, and for the method of awarding licenses they lean toward a review of their business proposal and the elimination of the ceiling for the research and development cost." He went on to say, "Many service providers demand that multiple standards be adopted to include both the CDMA (code division multiple access) used in North America and the W-CDMA (wideband CDMA) used in Europe."
The information and telecommunication sector has been against a spectrum auction and the repeal of the research and development ceiling in fear of rising expenses. In 1996 when they were selecting PCS service providers, the ceiling for research and development was 110 billion won ($98 million).
Rep. Kim Hee-sun of the Millennium Democratic Party said, "Most industry insiders want W-CDMA, but the Ministry of Information and Communication seems to cling to the CDMA, which has so far been the standard promoted by the government. Is this because of pressure from Qualcomm and the United States?"
Rep. Kim Hyung-o of the Grand National Party (GNP) said, "Eliminating the ceiling will have the same effect as the government's move to introduce a spectrum auction. It is a move being made for certain conglomerates which have a large cache of cash on hand, and the cost is likely to be past on to subscribers later on."
Rep. Kim Young-chun of the GNP said, "It looks like the selection of IMT-2000 service providers, a pending state-level issue, is being rushed. I believe it is necessary to take the needed time before making a decision in consideration that the 16th National Assembly has just opened."
Rep. Lee Sang-hee (GNP), chairman of the standing committee, said, "The government plans to hold only one hearing before making a decision, but we will push for the holding of a hearing after we form a new subcommittee in the National Assembly." |
