re: cdma2000 in Korea
>> Competent Firms Need To Take Part In Synchronous IMT-2000
The Korea Post
February 17, 2001
Prof. Chung Jae-young
koreapost.com
Following article on "The Korean economy and IMT -2000 synchronous technology" was contributed to The Korea Post by Prof. Chung Jae-young of Sung Kyun Kwan University in Seoul. He teaches business management. Excerpts from the article follow.--Ed.
It is said the 21st century is an era of information and telecommunication. We'll aware of the importance of information and telecom, all the countries in the world are desperate in their attempt to develop relevant technologies.
Fortunately enough, Korea has come to realize early the importance of the information-telecom industry and we are in abreast with advanced countries in some sectors today. The task given us is that we should come to take the van of a certain segment of the world's information-telecom market while waging severe competition with advanced countries.
The government, in this context, screened last December undertakers of IMT-2000 which, as the next-generation mobile communication, is said to be the "dream communication."
Technologically speaking, IMT -2000 has two kinds -- synchronous and asynchronous platforms. As long as synchronous formula is concerned, Korea is the "suzerain state" with international competitiveness.
This technology, originated from Qualcomm of the United States, is an advanced version of CDMA which was commercialized by us for the first time in the world in 1996. At present, 127 companies in 45 countries are using this mode, and subscribers were said to have totaled about 92 million at the end of 2000.
Korea, for instance, has three equipment firms, 14 terminal makers and about 20,000 part producers at present. Besides, 120,000 people are working for manufacturing firms alone as CDMA technology has been commercialized. Production by the third quarter of 2000 amounted to 6,500 billion won while exports totaled US$1,970 million, including US$1,840 million for terminal exports and US$130 million for equipment exports.
Meanwhile, asynchronous platform is a formula developed based on GSM technology being used in Europe. This method, which went into commercial service in Europe in 1992, has about 200 million subscribers in 134 countries at the end of 1999. In case of Korea, there are no equipment manufacturing firms that have GSM technologies. There are only two terminal firms and it is not known whether there are any part companies.
The market share of synchronous and asynchronous platforms is roughly 20:80 in favor of the latter, although estimates on the share vary. Furthermore, the asynchronous system has an attractive merit since it makes it possible to communicate in any country, that is, international roaming, with its own terminal.
Leaders of asynchronous technologies in the world market are Ericsson of Sweden, Nokia of Finland, Lucent of the USA and NEC of Japan. It may take about two or three years for Korean companies to get technological competitive power in the asynchronous mode.
It is better for us to utilize "synchronous technology" for which we have strong international competitiveness, increase exports, employment and income level and then launch the IMT-2000 business rather than we try to compete in the international market with yet-to-be developed technologies. This, I think, is the right option for the national benefit.
At the same time, we are supposed to cement the technological basis of the asynchronous platform as soon as possible and increase the market share at an early date. This will be the most ideal way to cope favorably with the situation. In reality, however, all of the IMT-2000 industrialists preferred asynchronous platform.
Suppose all of the Korean firms will adopt asynchronous platform. Then foreign industrialists who had planned to conduct the IMT-2000 project with our synchronous platform will naturally be hesitant to import our technologies, for there will be no countries in the world which will try to import expensive technologies which are not in use even in the country where they were developed.
Now, isn't there any international competitiveness for IMT-2000's synchronous technology? Technological experts do not believe so. In the first place, investment will be effective in the local market, for instance, because it will be possible to gradually construct a network with the second-generation network for interoperability.
Second, it will be possible to start high-speed wireless internet service at an early date in case we go ahead with the development plan of the 1xEV in the 2GHz brand.
Third, an international roaming will be likely between regions that adopted synchronous platform, including Sprint of the United States, KDDI of Japan and China Unicom of China.
Fourth, even before the asynchronous platform could establish a national network, synchronous platform will enable you to conduct voice conversation at any place in the country through 2-3 generation roaming.
Fifth, in the case of the synchronous system, we have some merits because we have an outstanding technological foundation at home, making operation and maintenance relatively easy.
Despite of those advantages, businessmen prefer asynchronous platform in line with their business strategies. If we start early the IMT-2000 business as wished by the businessmen in disregard of the level of domestic technological development, it will inflict a considerable amount of burden on the national economy.
As we have to rely on foreign countries for the key asynchronous technology and equipment, the Korean market is feared to become a testing site of foreign technologies and equipment.
Therefore, the government should render positive efforts to invite competent businessmen to take part in the synchronous platform by offering them appropriate incentive measures and develop chips that can be used for both synchronous and asynchronous systems.
Communications service firms are now in deep trouble economically because they are unable to recollect the money they invested in CDMA.
The people do not want that the IMT-2000 project to be carried out as scheduled even at the cost of inflicting a heavy burden on the national economy. Instead, they hope positive study should be made to flexibly adjust the business date until the national economy can digest asynchronous IMT-2000's key technologies and equipment localization.
The government, therefore, is asked to render scrupulous efforts to have the information-telecom industry create profound added value, increase exports, create employment and spearhead the national economic development campaign. ¡Ù <<
- Eric - |
