LG Seeks Partners for IMT-2000 Project
hk.co.kr
LG Telecom president Nam Yong said yesterday
that the company would seek to attract local
telecom partners into its third-generation (3G) bid
by providing a stake in LG Telecom.
The move is seen as a confirmation of its will to
participate in the stalled synchronous-mode 3G, or
IMT-2000, auction. It also verifies LG's runner-up
position in the telecoms race, behind the giants KT
and SK.
He added that the company is negotiating with
unnamed partners to hold LG Telecom shares.
He added that the market share restrictions on
mobile phone carriers is inevitable to prevent
dominance by one particular company, pointing at
SK's control of around 50 percent of the market.
Nam also denied a report on the merger of three
companies-LG Telecom, Hanaro Telecom and
Powercomm-saying it is difficult to become a
strong player through an alliance with weak
operators.
``LG Telecom has paid a network usage fee of 70
won per minute, while dominant market leader SK
Telecom has spent 40 won per minute,'' he
complained.
Nam said those unequal payment systems should
be corrected immediately.
Last Friday, Information and Communication
Minister Yang Seung-taik said the ministry would
not treat all communication companies the same in
its efforts to revamp the market.
``The ministry will decide on how much each of the
three telecom powers should share the
communication market and then decide asymmetric
regulations to be imposed on an individual basis,''
Yang told reporters.
``Even though the three players, SK Telecom,
Korea Telecom and LG Telecom dominate the
wireless communication market, the market share
ratio of 50:40:10 is not balanced and therefore it is
erroneous to label the companies as being any sort
of `Big Three' '' he added.
LG Telecom plans to increase its capital in an effort
to attract both local and foreign investments for the
3G auction. Its second-largest shareholder, British
Telecom, is likely to dispose of its entire stake in the
company by the end of this year.
The British company announced early this month
massive restructuring schemes, including a plan to
reducing its overseas investments.
It was reported that German telecom giant
Deustche Telekom would seek to buy BT's stake in
LG Telecom.
LG Telecom, which failed in the bidding to get the
two 3G service licenses based on
asynchronous-mode technology, is now looking for
a foreign partner to re-bid for the remaining 3G
service license based on synchronous-mode
technology. It had repeatedly said it was not
interested in the synchronous- mode technology.
kdh@koreatimes.co.kr
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