Korea's Samsung Elec Sets Up CDMA JV With
Shanghai Bell
SEOUL -- South Korea's Samsung Electronics Co. (Q.SSE) said Monday it
has established a joint venture company with China's Shanghai Bell Co. to
develop, produce and sell telecomunications equipment for code division
multiple access technology.
Shanghai Bell will own 51% of Shanghai Bell Samsung Mobile
Communications Co., and Samsung Electronics will own the remaining 49% of
the joint venture.
The two companies will invest a total of $29 million. The initial investment to
start the joint venture will be 12 million won ($1=KRW1,267.70), Samsung
said in a statement.
China provides wireless telecommunications services based on global systems
for mobile communications, or GSM. But China Unicom Ltd. (CHU) plans to
start CDMA-based wireless services early next year.
Samsung Electronics, the world's fourth largest mobile phone maker and
largest CDMA-based equipment maker, earlier this year won a contract to
provide CDMA equipment to China Unicom.
China Unicom plans to hold another auction next year for supply contracts for
CDMA equipment.
Shanghai Bell is a maker of wireless switching systems and terminals for
broadband services.
At 0230 GMT (9:30 p.m. EST Sunday), shares of Samsung Electronics were
up 3.8% at KRW230,500.
-By Suh Hae-sung, Dow Jones Newswires; 822-732-2165;
hae-sung.suh@dowjones.com
Briefing Book for: CHU | Q.CUC | Q.SSE | HK0762009410 | KR7005930003 |
