Bid Price for IMT-2000 Auction May Be Cut
In the latest reaction to sagging interest in the IMT-2000 bid, the Ministry of Information
and Communication has decided to review a line of possible measures aimed at
reducing the 1.3 trillion won license fee for both asynchronous operators and synchronous
bidders.
Information and Communication Minister Yang Seung-taik said yesterday the government
would consider cutting the third-generation (3G) spectrum license fee.
``We will squeeze out every possible policy to reactivate the next- generation
telecommunications service,'' he said in a meeting with reporters. ``High 3G costs will
lead carriers to debt downgrades throughout the telecom industry.''
He also said the government will allow the asynchronous-mode winners-- such as Korea
Telecom and SK Telecom-- to alter their technology standard into synchronous-mode.
He also said LG Group is the best bidder for synchronous IMT-2000 service in light of its
existing network and service experience over the past several years.
LG, Korea's third largest conglomerate, has several telecom affiliates, including mobile
firm LG Telecom, equipment maker LG Electronics and Internet and telephone service
provider Dacom.
The ministry had said it planned to streamline the nation's crowded telecommunications
industry ahead of the launch of 3G services by reshaping it around three groups offering
both wired and wireless services.
``With some four million subscribers, LG cannot compete with SK Telecom, which has 14
million users, and Korea Telecom, with eight million, on an equal footing if it has to pay
the same licensing fees,'' said minister Yang. ``I'm ready to review everything, including a
cut in license fees, if it helps develop the industry.''
The suspended third-generation mobile bid is now entering a new round with the
appointment of the new minister Yang, industry experts said.
The government has postponed the selection of a synchronous-mode IMT-2000 service
provider twice amid a lack of interest from telecom companies, who view the
synchronous-mode technology as unprofitable.
kdh@koreatimes.co.kr |
