Korea Telecom Fires 1st Salvo in IMT 2000
Battlefield
2000/10/25(Wed) 17:46
Korea Telecom Fires 1st Salvo in IMT 2000 Battlefield
Following the government's announcement of its receipt of the IMT- 2000 licensing
application, Korea Telecom, the largest fixed-line telephone service provider in
Korea, has geared up to secure an advantageous beachhead in a three-way battle for
the most lucrative telecommunication trophy _ International Mobile
Telecommunication (IMT) 2000.
Korea Telecom president Lee Kye-chul announced yesterday that the company is
planning to submit its bidding notification for IMT-2000 business, having
asynchronous mode as its technology standard.
Prior to his appearance before the National Assembly's science, technology and
information committee, Lee said that the company will soon complete its blueprint for
becoming the asynchronous mode operator of the next-generation
telecommunications service.
His public remark is the first one made by the head of a bidding company, which
represents the leading telecom company's confidence in the battle ahead.
The problem is not which of the three bidders will win the license, but who will be
selected as an operator of asynchronous mode or WCDMA.
From what has been seen until now, the three bidders have so far stuck to an
asynchronous mode.
The asynchronous mode or Wideband Code Division Multiple Access (WCDMA),
which is compatible with Europe's Global System for Mobile Communication (GSM),
is a third generation telecommunication standard backed by Japan and Europe and
most popular cellular standards in the world.
Industrial watchers said that WCDMA's market share was estimated at nearly 80
percent last year.
Due to this large portion of existing market share, three bidders _ Korea Telecom,
SK Telecom and LG Telecom _ have made proposals to adopt the asynchronous
mode or WCDMA for IMT-2000 operation, the next-generation telecommunication
service which enables users to access high-speed Internet service and
videoconferencing through mobile devices.
On the contrary, the synchronous mode or cdma2000, U.S.- based Qualcomm's
third-generation standard which offers Internet access at 2 megabits per second, has
gained a technological advantage in the United States and South Korea.
According to the Information and Communication Ministry, which has the
responsibility of supervising the biding process, it will select three types of operators :
One that adopts a synchronous mode, another that adopts an asynchronous mode and
one more that can adopt either of the two modes.
Despite the ministry's guidelines, some troubles are expected in the identification of
specific issues covered in the bid and assessment process.
If the three bidders adhere to an asynchronous mode in the final stage, the ministry
has a plan to reject one bidder and additionally select a new applicant which will
adopt a synchronous mode next year.
As a result, industrial watchers forecasted that it would cause a huge and severe
backlash against the entire telecommunication marketplace in Korea.
After a one-week application period, the ministry will evaluate applicants through an
internal deliberation committee and finally select the next-generation mobile phone
service provider.
Three bidders are now reportedly printing out their application documents, which
contain a business plan in relation to an asynchronous mode. They will also hand out
their application documents on Oct. 31, the final day of the application period.
kdh@koreatimes.co.kr
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