LG Hints at Possible Sale of Telecom Unit to Korea Telecom
By Kim Deok-hyun Staff Reporter
LG Telecom, the nation's second largest mobile phone carrier, has hinted at the possibility of
selling its telecommunication unit to the Korea Telecom.
LG Electronics, a major shareholder of LG Telecom, said yesterday, ``The sale of LG
Telecom to Korea Telecom is in the discussion stage but no decision has been made.''
``Preliminary'' talks between senior officials of the two companies were held last week,
indicating that LG is not interested in bidding for a synchronous mode IMT-2000 license, the
winner of which will be made public in March.
Industry analysts said that LG's statement reflected the significant change about the fate of its
telecommunication business _ which was unable to obtain a asynchronous third-generation
(3G) mobile phone, also known as IMT-2000, license last December.
Critics described LG's latest move as a tactic to gain an upper hand in the forthcoming
IMT-2000 bid.
A senior official at LG Telecom said, ``The company sent a proposal to Korea Telecom,
however, it is difficult to materialize a deal.''
LG Electronics added, ``The company is considering the wholesale revamping of its
telecommunication business.''
Outwardly, the LG Telecom-led IMT-2000 consortium is still sticking to its asynchronous
mode or wideband-CDMA IMT-2000 business, saying it will not bid for the remaining IMT-2000
ticket in mid-March.
Although the government has been contacting LG Telecom to attract the company's
synchronous mode or CDMA (Code Division Multiple Access) 2000 bid through
behind-the-scene meetings, LG's attitude remains cold.
Last week, LG Telecom strongly denied speculations of a possible sale of the company. It
then said in a statement, ``The only decision that we have made is that we will not pursue an
IMT-2000 service based on synchronous mode or CDMA 2000 standard.''
kdh@koreatimes.co.kr
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