S Korea's KTF Plans KRW135 Billion WCDMA Spending In 2003
Friday February 7, 4:05 am ET
SEOUL -(Dow Jones)- South Korea's KTF Co. plans to boost spending for third-generation wide-band code division multiple access wireless technology by about 42% this year to 135 billion won ($=KRW1,183.8), Chief Financial Officer Hong Young Do said during a conference call with analysts Friday.
The planned KRW135 billion spending at the country's second-largest wireless operator is a sharp contrast to rival SK Telecom Co.'s planned spending of about KRW520 billion on the so-called third-generation wireless technology, which the two companies plan to roll out this year.
Analysts have said SK Telecom's planned spending on 3G technology is a bit too ambitious given its unclear return on investments. That has prompted massive selling of SK Telecom shares in recent weeks and on Friday, the stock closed at a 39-month low of KRW160,500.
KTF's Hong told analysts the company determined its amount of investment in 3G regardless of its competitor's plans. "We won't invest unless we will expect returns," Hong said.
KTF has earmarked spending of about KRW1.08 trillion this year, with about KRW860 billion allocated for network. The amount is slightly down from KRW1.12 trillion it spent in 2002.
Separately, KTF said it expects revenue from wireless services to rise 9% on year to about KRW4.6 trillion this year. It also targets 2003 net profit of about KRW551.9 billion, Hong said, slightly above the KRW550 billion guidance the company provided in January.
KTF expects average revenue per user, or ARPU - a key industry gauge to determine long-term growth - of about KRW40,000 this year, and average usage of 160 minutes per subscriber, up from KRW39,626 and 155 minutes, respectively in the fourth quarter.
It also aims to have about 11.15 million wireless subscribers in 2003, up from 10.3 million last year.
The company said marketing costs should fall slightly this year from KRW872 billion in 2002.
Earlier Friday, KTF reported that fourth-quarter net profit fell 50% to KRW91.7 billion due to one-time costs, including bonus payments and merger expenses.
But revenue rose 9% year-on-year to KRW1.38 trillion, helped by a rise in wireless data services revenue. Average revenue per user for wireless data services rose to KRW3,671 in the fourth quarter from KRW2,265 a year earlier.
Shares of KTF fell on the results Friday, closing down 3.3%, or KRW850, to KRW24,600.
biz.yahoo.com
==========
As SK and KT take turns backpedaling on wCDMA...
It's amusing that primary cheerleader KT ICOM - after being absorbed into parent KTF, has its "planned" CAPEX cut to 1/4th of SK's...
That is if SK hadn't backed away yesterday...
Commercial wCDMA in Korea in 2003?
Commercial wCDMA in Korea? |
