US Objects to North-South Korea Mobile Phone Plan
AUGUST 5, 2002
WORLD MARKETS ANALYSIS
A South Korean plan to construct a mobile network in North Korea is facing strong
opposition from the US, according to a press report yesterday. The project, which
will involve major South Korean telecoms groups KT Corp, SK Telecom and LG
Electronics (see South Korea: Mobile and Fixed-Line (Voice)), is facing US
criticism due to fears that the technology could be used for military purposes,
according to an unnamed US diplomat in Seoul quoted by the Financial Times
yesterday. The US could put an end to the project since the network will use the
CDMA (Code Division Multiple Access) technology, pioneered and owned by US
technology firm, Qualcomm. The company is subject to US regulations that forbid
exports to politically suspect or hostile countries. North Korea, famously billed by
President George W. Bush as part of the 'axis of evil', could only begin using
CDMA technology if Qualcomm presents the network's operator with a licence to
do so. It remains to be seen how the South Korean government will proceed with
the project, which is intended to form part of its 'sunshine' reconciliation policy
with its northern neighbour. The US diplomat quoted in the FT report noted that
the US would have little say in the matter if the project were to use the European
GSM standard. However, it is unlikely that the South Koreans will chose the GSM
route since the ideal of the project is to increase communications between the
two Koreas.
Using CDMA in the North would make subscriber roaming easier and more
efficient for users in both countries. At present, North Korea has very limited
telecoms infrastructure. Despite last year's reports that Thailand's Loxley - one
of the country's few foreign operations - was discussing a plan to expand its
fixed-line North Korean joint venture by offering mobile services, such services
are unavailable to most North Koreans.A South Korean plan to construct a mobile
network in North Korea is facing strong opposition from the US, according to a
press report yesterday. The project, which will involve major South Korean
telecoms groups KT Corp, SK Telecom and LG Electronics (see South Korea:
Mobile and Fixed-Line (Voice)), is facing US criticism due to fears that the
technology could be used for military purposes, according to an unnamed US
diplomat in Seoul quoted by the Financial Times yesterday. The US could put an
end to the project since the network will use the CDMA (Code Division Multiple
Access) technology, pioneered and owned by US technology firm, Qualcomm. The
company is subject to US regulations that forbid exports to politically suspect or
hostile countries. North Korea, famously billed by President George W. Bush as
part of the 'axis of evil', could only begin using CDMA technology if Qualcomm
presents the network's operator with a licence to do so. It remains to be seen
how the South Korean government will proceed with the project, which is intended
to form part of its 'sunshine' reconciliation policy with its northern neighbour. The
US diplomat quoted in the FT report noted that the US would have little say in
the matter if the project were to use the European GSM standard. However, it is
unlikely that the South Koreans will chose the GSM route since the ideal of the
project is to increase communications between the two Koreas. Using CDMA in the
North would make subscriber roaming easier and more efficient for users in both
countries. At present, North Korea has very limited telecoms infrastructure.
Despite last year's reports that Thailand's Loxley - one of the country's few
foreign operations - was discussing a plan to expand its fixed-line North Korean
joint venture by offering mobile services, such services are unavailable to most
North Koreans. |
