re: The "3rd" Korean License - Update but not much new
>> LG Telecom Searching for Foreign Partner
Korea Times
2001/05/21
LG Telecom's attempt to find a foreign partner, viewed as being the final hurdle toward winning the last third-generation (3G) race, is likely to be finalized soon, the company said yesterday.
Lee Sang-min, a senior managing executive at LG Telecom, said negotiations have been well underway with three foreign companies to attract their investment in an LG-led 3G consortium and the decision seems to be imminent.
``We are dealing with two or three foreign telecom companies to form a joint venture for a 3G consortium and also expect concrete results soon,'' Lee said. However, he declined to elaborate because the deal is a potentially sensitive subject.
The smallest of the large mobile phone operators is reportedly in talks with three foreign firms: Verizon Communications of the United States, KDDI of Japan and Telesystem International Wireless of Canada.
What's more, Lee said that the company is now extensively negotiating with Canadian telecom giant TIW on more specific terms, compared with other foreign companies.
However, people close to the negotiations said the two companies are allegedly grappling with some conditions of the deal, adding that some tangible achievements are expected by the middle of next month.
The Canadian company has demanded management rights in the 3G consortium, but LG Telecom doesn't want to accept that request.
TIW, the most favorable candidate so far, expressed its intention to join the 3G consortium with a 25 percent holding of LG Telecom. It will also try to take control of British Telecom's 21 percent stake in LG.
Earlier this month, TIW executives visited Information and Communication Minister Yang Seung-taik, asking for the government's cooperation in the domestic 3G business, the ministry spokesman said.
BT, the second-largest shareholder in LG Telecom, is not interested in the domestic telecommunications market due to its internal financial difficulties. The troubled British company didn't participate in the LG Telecom's rights-issue offering last month.
An LG Telecom spokesman said BT was likely to dispose of all its stake in the company by the end of this year as part of BT's plan to pare back its overseas operations.
Analysts said TIW's move to become the main shareholder in a 3G consortium has gained support in view of LG's weak cash flow and other institutional difficulties.
They said there is speculation that foreign telecom companies would take a leading role in the synchronous-mode 3G business, by expanding its shareholdings in both LG Telecom and the 3G consortium.
The government awarded last December two of the three 3G licenses to two consortia led by state-run Korea Telecom and SK Telecom, the dominant cellular phone carrier in the country.
But the third and last auction for a 3G synchronous-mode operation license, based on Qualcomm's cdma2000 technology, hit a snag due to a lack of interest by bidders and its low business perspectives. <<
And ...
>> LG's 3G Consortium Attracts 300 Companies
Korea Times
2001/05/21
LG Telecom said yesterday around 300 local companies submitted their requests to join its third-generation (3G) consortium, including 20 large conglomerates.
``The number of participating companies is expected to increase as the deadline comes up,'' said LG Telecom's Senior Managing Executive Lee Sang- min.
The smallest mobile phone operator has been receiving applications through its website since early last week.
Of the conglomerates, Powercomm, a unit of state-run Korea Electronic Power Corp., Hyundai-Kia Motor and Hanjin group all expressed their intention to join the consortium.
However, Samsung Electronics is unlikely to participate in the consortium, people close to the situation said.
``Specific terms _ such as how much shares would be distributed in the consortium _ were not decided,'' Lee said.
LG Telecom plans to start to form its 3G consortium with 300-500 billion won of paid-in capital after wrapping up its negotiations to find a foreign partner.
``We are still in talks with several foreign firms to form the consortium, but no visible results have been made so far,'' Lee said.
Three foreign firms _ KDDI of Japan, Telesystem International Wireless (TIW) of Canada and Verizon Communications of the United States _ are reported to be in the talks.
He also denied some speculations that foreign companies would take a leading role in the 3G consortium, saying that an international partner should be positioned as the second-largest shareholder.
With regard to Hanaro Telecom's announcement that it will take make-or- break action if LG Telecom continues to form its own consortium, Lee said it isn't worth a comment.
``However, we will welcome it, any time, if Hanaro Telecom wants to join our consortium,'' he said.
On the same day, Hanaro Telecom president Shin Yoon-shik met with Information and Communication Minister Yang Seung-taik to extensively discuss its stance on the 3G auction.
The 3G mobile network, also known as IMT-2000, offers high-speed audio, video and data information to mobile phones and other portable devices.
Last December, the government awarded two asynchronous-mode 3G licenses to SK Telecom and Korea Telecom.
The third and last ticket, based on Qualcomm's synchronous-mode cdma2000 technology, is likely to go to LG Telecom which failed to obtain a license earlier. <<
- Eric - |
