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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED

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To: Dealer who wrote (9430)10/24/2000 8:46:25 AM
From: Dealer  Read Replies (1) of 65232
 
QCOM--Korea not to force telcos on 3G technology -paper
SEOUL, Oct 24 (Reuters) - South Korea will not force telecom companies to adopt technology developed by U.S. Qualcomm (NasdaqNM:QCOM - news) for third-generation mobile services, a local daily reported on Tuesday.

The Maeil Business Newspaper said in its early Wednesday edition that the Ministry of Information and Communication has given up pushing bidders to switch their preference to Qualcomm's cdma2000 from W-CDMA developed by Nokia and Ericsson .

Information Minister Ahn Byung-yub last week met the representatives of three telecom companies expected to bid for 3G licences, but failed to persuade them to adopt cdma2000, it said.

Ministry officials said they could not confirm the report.

``It's too early to say the ministry has given up offering Qualcomm's version for telecom firms as nobody knows which standard they would opt for in the end,'' a ministry official in charge of the 3G licensing process told Reuters.

The ministry recently demanded that two competing platforms be adopted for the 3G service in the face of strong protests from local telecom equipment manufacturers, including Samsung Electronics .

Korean equipment makers are keen on supplying cdma2000 handsets, based on models they already produce.

But the three carriers -- SK Telecom , Korea Telecom and LG Telecom -- all said they preferred W-CDMA, which has a larger global subscriber base.

The three companies are expected to submit their applications favouring W-CDMA beginning Wednesday through October 31.

Minister Ahn earlier said only two carriers would be allowed to adopt W-CDMA if they chose in the 3G screening due at yearend, but the government would then hold a follow-up auction to find a cdma2000 carrier, probably by next March.
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