Conflict Over IMT-2000 Technology Standard Escalating
hk.co.kr
By Yang Sung-jin
Staff Reporter
With the final licensing procedure just a week away,
the IMT-2000 technology standard issue veered
into a smoky area as mobile phone service providers
remain secretive about their preference.
The Ministry of Information and Communication
announced it would reveal the specifics about the
number of licensees, screening method and
technology standard on July 10.
The final procedure will be consulted with industry
experts and policy makers earlier next week before
the formal announcement, fueling a number of
speculations.
The center of contention is the technology standard
for the third generation wireless communication.
A top ministry official said the government is likely
to favor a free choice for the bidders, letting them to
decide their own standards suited for business plans
and marketing strategy.
``Although the free choice is a mainstream idea, I
don't think all the bidders will choose the European
GSM mode as suggested by the media,'' said Sok
Ho-ick, director of the Telecommunication
Business Promotion Bureau.
Korea Telecom, a state-run telecom giant
competing with rivals for the license, stressed it
would select the standard for 3G service which will
bring the biggest benefit to the country, Sok noted.
Sok's remark is viewed as a subtle indication that
Korea Telecom, whose largest shareholder is the
government, may opt for the Qualcomm-led
multicarrier mode of IMT-2000 rather than the
European mode.
The controversy flared as SK Telecom, the nation's
largest mobile carrier, made known its intention to
adopt the GSM-based direct spread type for 3G
service.
To reshape the market structure, Korea Telecom
and LG Group, another bidder for the IMT-2000
license, are known to be pushing for a standard
different from SK Telecom, the dominant player
which took over Shinsegi Telecomm earlier this
year.
If SK Telecom embraces the GSM mode
spearheaded by European solutions providers,
Korea Telecom and LG Group may go in an
opposite direction to adopt cdma2000, an extension
of today's CDMA technology developed by
Qualcomm.
However, it is also possible that SK Telecom and
Korea Telecom would choose Qualcomm's
standard. Then, LG Group would be expected to
follow suit since it could not create a viable market
alone.
The scenario hinges partly on the government's
awkward position in relation to CDMA royalties,
with a huge sum of money transferred to the
accounts of Qualcomm, a San Dieo-based
company whose shares hit a new low after the
Korean government scrapped handset subsidies and
forced chipset demand down.
The ministry has repeated its ``let-it-be'' policy,
saying that if the free choice option is adopted, the
government will not force bidders to choose a
specific standard.
Service providers, of course, question the policy,
citing the uncertainty shrouding Korea Telecom's
final choice and possible U.S. trade pressure once
Qualcomm's technology is forced out of the market.
Earlier, Information and Communication Minister
Ahn Byung-yub said the government may play an
intermediary for royalties negotiations if it sets the
technology standard and asks license bidders to
follow, but such interference may not occur if the
bidders are given a free choice.
Ahn's remark was interpreted to suggest that the
government will not help IMT license holders to cut
down on royalty rates if all of them opt for the
European mode.
The government appears worried about the
possibility that U.S.-led CDMA technology will lose
its momentum. Minister Ahn also said the
underlying dilemma for Korea is the mobile phone
history which relied solely on Qualcomm's
technology.
Moreover, manufacturers which have poured into
CDMA technologies might lose the domestic
market overnight if all the 3G licensees favor the
European mode.
Sources familiar with the issue said all three major
bidders are trying to get out of the monopolistic
influence of Samsung Electronics, a dominant
supplier of Qualcomm's IMT-2000 systems and
handsets.
·âú¶«Çøœ 2000/06/29 17:18
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