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Technology Stocks : Nokia Corp. (NOK)

NOK 6.190

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From: Eric L	10/24/2006 9:31:16 AM
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Nokia HSDPA Handsets in Korea ??? >> KTF to Buy Foreign HSDPA Phones Digital Chosun Ilbo (Korea) October 16, 2006 english.chosun.com Telecom provider KTF wants to buy so-called 3.5th-Cell phones from overseas suppliers next year. That will be a blow to Korean phone makers Samsung Electronics, LG Electronics and Pantech, who now have some 90 percent of the market to themselves. A KTF executive on Sunday said Korea’s second largest telecom provider is in discussion with Finland’s Nokia to buy phones for the next-generation high speed downlink packet access (HSDPA) wireless technology next year. KTF president Cho Young-chu met with a senior Nokia executive at an international IT forum in Manila, the Philippines last month. If the deal goes through, it would mean Nokia’s return to Korea four years after it withdrew from the market. KTF is also in contact with Sony Ericsson to buy HSDPA phones. HSDPA is based on the wideband code division multiple access (WCDMA) technology used here and allows users to make video phone calls. Korea’s largest telecom provider SK Telecom commercially launched the service in May, with KTF following in July. With HSDPA, users can download up to 14.4 Mb of data per second, more than seven times the 2 Mb of the WCDMA. But HSDPA is slower in uploading data -- only up to 2 Mbps -- which is why the name emphasizes “downlink.” KTF’s plan aims to give the company an edge over its rivals in the Korean HSDPA market. The company worries that reliance on domestic handset manufacturers could cause a delay in phone supplies. KTF said last week that it will invest more than W400 billion (US$1=W955) by March in building a nationwide HSDPA network ahead of its rivals. Another reason for the move is that overseas phone makers have the know-how for cell phones with the roaming technology that allows cell phones to be used in other countries. KTF has concluded that Koreans will be more interested in the roaming service once HSDPA becomes available abroad. SK Telecom is keeping an eye on KTF's plan for global sourcing. An SKT staffer said the company is also interested in buying HSDPA phones from abroad and will review the matter. << - Eric -

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