QCOM--Korea extends 3G licence deadline to end-October
SEOUL, Sept 14 (Reuters) - South Korea will extend the deadline for third generation (3G) mobile service licence applications by one month until the end of October due to a dispute over technology standards, the Ministry of Information and Communication said on Thursday.
Analysts said a dispute was mounting as three top mobile operators have expressed interest in adopting a W-CDMA system for next-generation service.
They said the government was expected to urge at least one operator to stay with Qualcomm Inc's (NasdaqNM:QCOM - news) cdma2000 system upon which Korea's current mobile system is largely based.
W-CDMA technology is being developed by Nokia and Ericsson and is attractive to operators because it is based on a technology that now commands about 80 percent of the world's mobile market.
Last month, Samsung Electronics and other major mobile equipment makers, which have focused on Qualcomm's standard, urged carriers to adopt cdma2000, stoking dispute over the technology standard.
``The delay is to give time for potential candidates to discuss which standard would benefit the country most, not their own commercial interest,'' a ministry spokesman told Reuters.
``The ministry maintains a basic principle of seeking a dual standard and will encourage carriers and manufacturers to hammer out their differences,'' he said.
The official said the ministry held a meeting with mobile carriers and major telecom equipment manufacturers on Thursday afternoon and decided to extend the deadline.
The ministry said it would hold to its target of awarding three licences by year-end.
Bidders for the 3G licences, which promise new revenues from fast mobile Internet and multimedia services, are expected to include consortia led by SK Telecom , Korea Telecom , and unlisted LG Telecom.
South Korea has one of the highest mobile phone user rates in the world and more wireless phones than land lines.
The government has set a bid ceiling of 1.3 trillion won ($1.17 billion) and a floor of one trillion won for the three spectrum licences, vowing to select winners based on their technology, experience and financial strength. |
