Mobile Service in NK possible in 2005
KT, the nation's largest telecommunications company, and SK Telecom, the leading
mobile communications carrier, will lead a consortium to provide mobile services in
North Korea.
According to the Ministry of Information and Communication (MIC), the two carriers
will deliver code division multiple access services in the Pyongyang and Nampo
regions.
``We have been looking at possibilities of service and equipment companies jointly
engaging in the business but there are too much conflicts of interest,'' said one MIC
official.
The conflict of interest is only a part of the problem. The United States still lists North
Korea as a terrorist supporting nation and this means that American products and
components cannot enter the country.
Since there are numerous U.S.-patented components in mobile communications
equipment and handsets, these will not be able to reach the North Korean market for
now.
``For now, there are many political issues that have to be resolved before the project
can move forward but if everything goes well, trial operations could begin by 2005,''
said one MIC official.
It is difficult to estimate demand in the North Korean market and so it is hard to tell the
volume of capacity that will be required even at the very beginning.
``Mobile communications companies like SK Telecom have determined that this will be
a profitable venture, but the exact figures are hard to confirm,'' the official said, asking
for anonymity.
``The government is prepared to provide all the necessary support to push the process
forward, but the unique situation in the North makes any such project difficult,'' he
added.
For one thing, the upcoming ministerial meeting is important in that it could allow for
further communications at the working level to resume after the recent confrontation in
the West Sea.
Further, improvements in the ties between the North and the U.S. could make it
possible to have Pyongyang removed from its current embargo, thus opening the way
for the installation of equipment using American products and components.
``The formation of the consortium between KT and SKT is really a minor issue since
they have to operate the system anyway. They are likely to hold about 85 percent of
the ownership of the project,'' the official confirmed.
ÀԷ½ð£ 2002/08/09 19:12
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