SK welcomes possible delay in 3G service; But Korea Telecom says a delay of more 6 months is unacceptable
The recent indication by the Ministry of Information and Communication that the
3G (third-generation mobile telecom) service here could be delayed has met with
varied responses from the three wireless operators that are bidding for 3G licenses.
SK Telecom, the dominant wireless carrier in the current 2G market which
stands to gain from deferring investment in 3G, welcomed the news. "The delay
would give equipment makers time to develop W-CDMA (wideband code division
multiple access) systems. There is no need for early deployment of IMT-2000
which requires huge investments, particularly at this point when the economy is
experiencing a downturn," said SKT spokesperson.
With all operators claiming they would deploy a W-CDMA network, local
equipment makers have been arguing that a 3G service launch in May 2002, in time
for the 2002 World Cup Soccer, would rely heavily on imported systems. Leading
equipment makers such as Samsung Electronics and Hyundai Electronics Industries
argue that they will not be able to develop W-CDMA products to meet that
deployment schedule.
The IS95-C service which will be introduced here next month should be able to
provide services very similar to 3G in the meantime, according to SKT.
At Korea Telecom (KT), the response is more cautious. "Delays of less than six
months could be acceptable if domestic equipment can be developed within that
time frame," said a high-ranking KT official. Six months should be sufficient for local
equipment makers to catch up in developing W-CDMA systems, he projected,
indicating that a delay of more than six months would be unacceptable for the
service provider.
LG, which claims to have reached advanced stages of W-CDMA system
development, wants the 3G service to kick off as originally planned.
Meantime, it remains to be seen if the ministry will actually set the 3G deployment
date, pushing it back from May 2002. Information and Communication Minister
Ahn Byung-yub recently said, "There has never been a firm date," hinting that 3G
service could come later than 2002.
Updated: 09/27/2000
by Kim Hoo-ran Staff reporter
koreaherald.co.kr |
