Seoul reaffirms selection of operator for cdma2000 3rd-generation service
The Ministry of Information and Communication yesterday reaffirmed its determination to select an IMT-2000 service provider to use cdma2000 technology.
"We plan to select a cdma2000 operator without fail as scheduled," said Suk Ho-ik, director of the Telecommunication Business Promotion Bureau of the ministry. "Consequently, we are not considering switching the frequency band reserved for cdma2000 service into one for W-CDMA (wideband code division multiple access) service."
The reaffirmation came in response to news reports that British Telecom, the second-largest shareholder of LG Telecom, would recommend that the government select a third W-CDMA operator.
Korea Telecom and SK Telecom beat out LG Telecom in the bidding for two W-CDMA licenses which was held last year. Since then, the government has been trying hard to persuade LG Telecom to apply for a cdma2000 license, to no avail.
Suk explained that the nation needs to have at least one cdma2000 operator to foster related industries, stabilize employment and boost the benefits to the public through healthy competition between cdma2000 and W-CDMA operators.
In Europe, he said, many countries have ensured that there is more than one W-CDMA service to foster competition and enhance technological competitiveness.
"Korea has already reached a high level in cdma2000 technology," Suk said. "This means the business prospects for a cdma2000 service are good, although of course it depends on the operator's ability."
According to the official, a cdma2000 operator would have advantages over W-CDMA operators because it will be allowed to launch the initial-stage service of IMT-2000 called MC1X, using the 2GHz frequency band for the first time
He also noted that handsets for the cdma2000 service are already available on the market, thus saving a lot on investment costs in comparison with W-CDMA operators who are obliged to develop dual-mode and dual-band technologies.
Hanaro Telecom, bidding for a cdma2000 license, has complained that the operator would be unable to see profits if KT and SKT launch the MC1X service. According to Hanaro, KT and SKT can provide MC1X service using the same frequency bands they use for narrowband services, thereby attract at least 10 million new subscribers.
However, the ministry official dismissed this, saying that even if KT and SKT launch the service, they will have trouble enlisting a large number of new subscribers because of a possible depletion of frequencies.
"No matter how much they improve the system of their base stations, there are limits. For this reason, the International Telecommunication Union (ITU) allocated new frequencies seven to eight years ago," Suk explained.
(hsshine@koreaherald.co.kr)
By Shin Hye-son Staff reporter
2001.02.19 |
