Technology News
Sun, 20 May 2001, 6:56pm EDT
LG Telecom, Verizon, KDDI Discuss Korean License
Bid: Yonhap
By Renee Kim
Seoul, May 20 (Bloomberg) -- LG Telecom Ltd. is in talks with Verizon
Communications Inc. of the U.S., Japan's KDDI Corp., and a Canadian company
to jointly bid for the last Korean license to offer new mobile phone services,
Yonhap News reported, citing unidentified industry sources.
LG, the only unprofitable Korean cellular service provider, wants all three
companies to participate as part of its strategy to expand globally if it wins the
license to provide high-speed mobile data services, which companies believe will
provide the majority of earnings for cellular service providers, Yonhap said.
There's been no decision on each company's investment.
Hanaro Telecom Inc., Korea's No. 2 high-speed Internet service provider, said it
won't join the LG consortium because LG's plan indicates it wants to become the
major shareholder in the group, something Hanaro strongly opposes, according
to Yonhap.
LG Telecom's shares surged as much as 9.8 percent while Hanaro Telecom
shares rose as much as 5.6 percent on Friday on the possibility the two may win
a joint bid for the mobile phone service license. Korea has delayed offering the
third permit indefinitely because companies need more time to prepare
proposals.
bloomberg.com |
