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Nothing that has happened in Korea today has affected the commitments to roll out 1X (CDMA200) in October of this year and HDR by mid-2001 within existing licensed spectrum.
Any move to WCDMA in Korea is for future spectrum. Posit a possibility here. What if the 1X (CDMA 2000) coupled with HDR service within existing spectrum is successful (it has been in development for years and the Q has stated that it is workable within months) and WCDMA is not up to speed within two or three years for whatever reason , i.e., lack of a workable set of ASICs, unresolved IPR litigation with Q, rollout problems due to undeveloped technology, etc., then do you think WCDMA will be significant in Korea? Not an icicle's chance in Hell.
This needs to be seen for what it apparently is: A shrewd yet transparent move by the Koreans to arm-twist Q, who holds the preeminent 3G time-to-market advantage, so that they can get better rates on Q's products.
The ban on subsidies and the announcement that the Korean government intends to have Korean manufacturers self-sufficient in CDMA products are all part of an integrated strategy whose purpose is obvious. Like NOK, the Koreans don't like the hold that Q has on them, and are responding appropriately if probably ineffectively. Personally, I hope Dr. J. sticks to his guns, short term stock price be damned. |
