KOREA ECONOMIC WEEKLY/ IMT2000 technology standard will be left to service carriers
July 5, 2000
e-topics.com
Asia Intelligence Wire via NewsEdge Corporation : The government policy on IMT2000 standard is leaning toward leaving everything up to the service carriers.
The Information and Communication Minister Ahn Byoung-yeop said on June 26 during the National Assembly of Science Technology Information Communication Committee meeting, "The government policy on IMT2000 technology standard will be announced along with the service carrier selection criteria in the beginning of next month."
He continued on and said, "Even if telecom companies all decide to adopt asynchronous system, the government will not employ administrative guidance or pressure and force specific companies to choose synchronous system."
Ahn also said that the abolition of the upper limit for the frequency allotment price, which had been brought up by some parties concerned, means an auction system, which is out of line with the purpose of legislation, and therefore will not be considered.
Ahn's remark showed a change in the government's policy, because the government had been adhering to the asynchronous system so far.
MIC is scheduled to announce the service carrier selection criteria, including its intent to leave technology standard up to service carriers in the beginning of July.
The minister Ahn said regarding the level of domestic asynchronous technology development, "Electronics and Telecommunications Research Institute says development of asynchronous technology would take some more time, but we believe that once telecom companies are selected, private manufacturers will certainly be able to supply the products on time."
He added that while exchanging technology with foreign countries, domestic companies will be able to develop asynchronous system as well.
The minister also said that since some small to mid-sized companies join Korea IMT2000 consortium with the aim of increasing capital by rising stock prices, the Ministry is considering raising frequency allotment price.
As the minister of Information and Communication announced that IMT2000 technology standard will be completely left to service carriers, IMT2000 standard issue that had been stirring the public has settled for the time being.
Accordingly, Korea Telecom, SK Telecom, and LG Telecom who had been preparing for the launching of IMT2000 service have now taken a load off from their mind regarding technology standard.
Industry experts said that the government decision seems to have been influenced by the public opinion, which expressed that government intervention on technology standard is undesirable.
However, Ahn said, "synchronous system is also approved by International Telecommunications Union(ITU) as one of the IMT2000 standards, and its commercialization is faster than asynchronous system," still hoping that at least one company will adhere to synchronous system even when the decision is left to service carriers.
The related industry welcomed the minister's statement on technology standard, saying that the government gave a resolute decision, although it seems rather late.
However, regarding Ahn's remark on raising frequency allotment price to prevent new companies from entering the market, Korea IMT2000 insisted that the government should let new companies enter the IMT2000 consortium for competitiveness and prevention of monopolization.
In the meantime, several members of the standing committee criticized the MIC for maintaining a noncommittal attitute on technology standard.
<<Asia Intelligence Wire -- 07-03-00>> |
