To: Ruffian who wrote (11236 ) 6/1/2000 7:28:00 AM From: JohnG Read Replies (2) | Respond to of 13582
Korea contemplates 3G royalties and standards. JohnGkoreaherald.co.kr Operators oppose spectrum auction for IMT-2000 service With the Ministry of Information and Communication due to announce its plan for awarding third-generation (3G) mobile service licenses at the end of the month, the first public hearing on 3G licensing failed to give any hints as to what businesses may expect concerning number of operators, award method and technology standard. In his presentation, Kim Sang-taek, senior research fellow at Korea Information Society Development Institute (KISDI) said that 3-4 seems to be the optimum number of IMT-2000 operators. Citing a recent research by the Korea Radio Promotion Association, which concluded that each operator would need about 15MHz to cope with the growing demand for data services, Kim suggested four or less 3G operators. On the standards issue, Kim said adoption of multiple standards could be considered. There are two proposed competing standards: cdma 2000, which evolves from the CDMA (code division multiple access) technology currently employed in Korea, and the W-CDMA (wideband CDMA) that makes up 70 percent of the global market for mobile telecom. "As neither cdma2000 or W-CDMA seems superior to each other in our situation, deployment of multiple standards could be considered," Kim said. However, the position of the institute, affiliated with the Ministry of Information and Communication, was less clear on how the operators will be selected. While discussing the pros and cons of the auction, beauty contest and lottery, Kim did not indicate which would be preferable. Chae Jong-suk, who heads IMT-2000 development at the Electronics and Telecommunications Research Institute (ETRI), suggested a need for collective negotiation with foreign companies that hold IPR (intellectual property rights) on core technologies and proposed that Korean companies act in concert with other Asian countries in negotiating royalty fees. "Korean companies would be at a serious disadvantage if we decide on a standard before conducting royalty talks," Chae pointed out. While the presenters were ambivalent, the telecom industry was very clear about where it stood. The officials from the five mobile operators and the Korea IMT-2000 consortium all voiced strong opposition to a spectrum auction. However, they differed when it came to the standardization issue. While SK Telecom said it would prefer a single standard, either W-CDMA or cdma2000, others favored the adoption of multiple standards. Meanwhile, Hansol M.Com, which is working with the two other PCS operators in forming a joint network for IS-95C service, proposed that a standard be adopted after the formation of the joint network. Updated: 06/02/2000