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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting
QCOM 177.78-2.2%Jan 9 3:59 PM EST
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To: foundation who wrote (11800)6/19/2001 7:34:20 AM
From: foundation  Read Replies (3) of 197157
 
SK Telecom Delays W-CDMA Service

SK Telecom will not deploy its W-CDMA IMT-2000 third generation wireless service
before the start of 2002 World Cup as it had originally promised. As a result more
than 670 small- and medium-sized firms and venture firms which are the members
of the SK-led IMT-2000 consortium are likely to suffer from heavy setbacks.

SK Telecom announced Tuesday that it plans to launch commercial service of a
CDMA-IMT 2000 service coded as a third-generation CDMA-2000 1X-EV-DO
(Evolution Data Only) before the World Cup in June of next year.

The largest mobile service provider in the country, however, clinched the coveted
license for the W-CDMA service, and promised to deliver service on the eve of the
World Cup.

Sources said the SK determined that W-CDMA-2000 service does not have any bright
business prospects and thus switched to the CDMA camp.

This so-called CDMA-2000 1X EV-DO is the most advanced CDMA service currently
and can provide Internet Service about ten times faster than the current CDMA-2000
1X service.

What lies at the core of the problem is that the 1X EV is CDMA-based technology and
not W-CDMA based technology.

Around the end of last year, SK Telecom declared that it would set up a W-CDMA 3G
service network across the country by investing W1.2 trillion by 2003 and a
cumulative total of W3.2 trillion by 2007.

One high-ranking official at SK Telecom revealed that the announcement Tuesday is
an indirect acknowledgement that SK's W-CDMA service is going to be delayed.

SK Telecom had committed itself around the end of last year to provide roaming
service between second and third generation services and between CDMA and
W-CDMA services.

But Qualcomm of the United States, which holds the core patents for CDMA
technology, disclosed that the US company will be able to provide such a chip with a
roaming function by 2003.

One consortium-member company was outraged at SK Telecom, saying that his
company has thus invested several billion Korean won into producing equipment for
SK-IMT and the investment has yet to generate any income.

(Cho Hyung-rae, hrcho@chosun.com)

chosun.com
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