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To: S100 who wrote (73946)6/15/2000 1:17:00 AM
From: S100  Respond to of 152472
 
New issues emerge for selecting IMT-2000 operators

New issues emerged at the first public hearing on the Information and
Communication Ministry's proposal for IMT-2000 operator selection held
Tuesday, with the message that much still needs to be worked out before the final
announcement on the number of operators and selection method at the end of the
month.

Most of the 16 panelists from research institutes, the academia, civic
organizations, equipment makers and wireless service operators were in apparent
agreement on a modified beauty contest, three operators, and multiple technology
standards, with the exception of SK Telecom (SKT) which called for a single
standard.

However, a number of new issues were raised during the meeting, reflecting
differing interests of the businesses, particularly the service operators.

Korea IMT-2000 Consortium, a grouping led by Hanaro Telecom Inc. and
Onse Telecom, both of which provide fixed line service only, said IMT-2000 is a
revolutionary service combining both fixed and wireless services. Hence, it was
illogical to brand the consortium as a new entrant while, in fact, current wireless
operators should also be considered new players in the IMT-2000 market.

Lee Jong-myung, who spoke for the Korea IMT-2000, also called for a
spectrum cap, giving 10MHz each to two existing wireless carriers and allocating
20MHz to a new entrant. "The government could hold the remaining 20MHz, of the
60MHz available for IMT-2000, in reserve and give it out later to entrants," Lee
proposed.

Meanwhile, SKT, LG TeleCom (LGT) and Hansol M.com stood by their
position that wireless operators should be chosen as IMT-2000 operators, based
on their experience and existing infrastructure. However, Korea Telecom (KT), as
a fixed-line telecom operator, maintained that no preference should be given to
current wireless operators.

On the issue of roaming between 2G and 3G services, as a way to avoid
redundant investment, LGT said, "Requiring roaming between 2G and 3G is de
facto setting cdma2000 as the technology standard for IMT-2000." Even if multiple
standards were allowed, for a company that opts for W-CDMA to have to provide
roaming for 2G would entail added costs for customers needing to get dual band
handsets, noted Lee Chung-shik, an LGT official. "It should be left up to the
operators to decide whether they would provide roaming between 2G and 3G," he
concluded.

KT also said the issue should be left up to market demand, voicing concern that
roaming between 2G and 3G could pose problems of fair competition.

A dispute among operators arose yesterday on the key question of who would
apply for the IMT-2000 license. KT and LGT said a consortium should be defined
as a consortium in which a current wireless operator is a member.

Meanwhile, Korea IMT-2000 Consortium argued that a new consortium should
be among the operators chosen to promote competition and consumer interests.

SKT said it should be up to the bidding company to decide whether to form a
consortium.

On the issue of technology standards, deviating from other panelists, KT called
for a timely decision on the matter as the absence of a clear position on standards
could pose problems for operators as they formulate their business plans. (KHR)

Updated: 06/15/2000

koreaherald.co.kr