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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting
QCOM 177.78-2.2%Jan 9 9:30 AM EST
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To: Ramsey Su who started this subject9/1/2000 12:32:49 PM
From: foundation  Read Replies (1) of 197155
 
Regarding SK Telecom's halt of handset shipment -

"While SKT explained that it was forced to take the drastic course of action after its attempts to drop market share failed to yield results, the measure invited immediate opposition from Samsung Electronics, Korea Telecom Freetel (KTF), Korea Telecom M.Com and LG TeleCom (LGT)."

"The four companies do not regard the latest move as simply part of an attempt to reduce market share. Industry officials here interpret SKT's move as an effort to resist pressure from equipment manufacturers to adopt cdma2000 (code division multiple access 2000) as its IMT-2000 standard..."

"One day after SKT's announcement, Samsung Electronics issued a statement saying that SKT was abusing its position as a dominant market player and that the shipment of wireless handsets should be resumed immediately."

Industry sources here view the latest controversy created by SKT on its market share as serving a dual purpose. First, it is an attempt by SKT to exert more influence over the IMT-2000 standard issue by dealing a stern warning to Samsung Electronics which has been actively lobbying the industry and the government to adopt cdma2000 technology..."

"However, industry officials here predict that SKT's plan could backfire as while demonstrating its power as a market dominant player, it also demonstrated clearly how the market is vulnerable to abuses by a dominant power."

koreaherald.co.kr
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