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Technology Stocks : C-Cube
CUBE 36.52+0.3%Dec 12 9:30 AM EST

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To: Patrice Gigahurtz who wrote (17957)7/6/1997 11:02:00 AM
From: John Rieman   of 50808
 
Korea Herald. LMDS/ VOD in Korea...............................

Go here for Cube's SEC fillings...............

sec.gov

koreaherald.co.kr

07-05-97 : Haitai Telecom Demonstrates Digital LMDS; Capable of VOD, Internet Access, Wireless Telephony

By Yu Kun-ha Staff reporter

Haitai Telecom has demonstrated a new wireless network technology which enables users to watch a video on demand, access the Internet at high speeds and place phone calls through their PCs _ all at the same time. Haitai's system, consisting of equipment provided by Millitech Corp. and Standford Telecom of the United States, is basically a wireless cable TV system called local multipoint distribution system (LMDS).

But Haitai's LMDS is totally different from the LMDS now used by cable TV operators in such countries as the United States. While the existing system is an analog one-way system designed purely for wireless distribution of cable TV services, the system demonstrated by Haitai is a digital two-way LMDS which can provide high-speed multimedia communications services in addition to cable TV service. Digital two-way LMDS is a cutting-edge technology not yet commercialized in any country in the world. In the United States, the new technology is expected to go into commercial service next year as the Federal Communications Commission (FCC) is likely to auction radio frequencies for the system within this year. The frequency auction was slated for this April but delayed.

Haitai's pilot system operates on the frequency bands of 28.27 gigahertz (GHz) downstream and 24.47 GHz upstream. Its bandwidth is 40 megahertz (MHz), wide enough to handle multimedia signals. The broadband network uses asynchronous transfer mode (ATM) transport, which can allocate bandwidth on an as-needed basis to each user. As the system uses high frequency bands, its transmission speed is unusually fast. In a demonstration held recently, the system transmitted data at 38 megabits per second (Mbps), a speed 590 times faster than that of ISDN (Integrated Services Digital Network).

The demonstration was made between the Haitai Group building in Mapo and the Haitai Electronics building on Yoido. The distance between the two buildings is 2.8 km. The crowd gathered at the Haitai Electronics building observed a system capable of offering video on demand (VOD), Internet access and wireless phone services _ simultaneously and in real time.

Lee Seung-hee, a senior manager of Haitai Telecom, a startup created last year, told the invited guests that his company will be able to supply commercial LMDS equipment around next May. The guests included officials from firms which have applied for the government's selection of network operators (NOs) in the planned second rollout of cable TV services. A selection process is underway. The state-of-the-art wireless network technology, however, is not likely to be adopted by the applicants for building the cable TV networks because it is more costly to implement than analog one-way LMDS technology.

``We know that digital LMDS is much better than analog LMDS,'' said an official from a telecom operator. ``But if we adopt it, we stand little chance to be selected by the government, since our cost quotation will be much higher than that of other applicants.'' But he added that his company, once selected, will consider adopting the technology because it is the way to go.

Haitai Telecom officials conceded that the domestic market for digital LMDS will take time to form. But he stressed that Haitai's development of a digital two-way LMDS will help the Korean government achieve its plan to wire the nation with high-speed communications networks earlier than scheduled. Lee said his company is more interested in exporting its system to the United States, where a market will be created next year.

``The prospect for digital LMDS is bright in the United States as it can offer high-speed data services to subscribers at affordable prices,'' said Robert Mindte, operations vice president of Standard Telecom. In demonstrating the system, Haitai relied heavily on Millitech Corp. and Stanford Telecom. Millitech supplied the equipment for radio frequency transmission and reception, while Stanford Telecom supplied the network management system (NMS) software, equipment for the hub station and customer premise equipment. For the demonstration, Haitai customized all software and hardware to domestic conditions.

Lee said Haitai has signed agreements with its two partners to locally produce such core devices as air interface unit (AIU), air management unit (AMU) and residential gateways. Haitai will export them to the partners under OEM (original equipment manufacturer) agreements. ``In a short period of time, we have secured expertise in digital LMDS technology from scratch,`` Lee noted.
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