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To: Ruffian who wrote (5944)	6/29/2000 1:41:00 PM
From: Iceberg	Read Replies (1) \| Respond to of 34857

Ruffian, what is "IPR"? <eom> Ice

To: Ruffian who wrote (5944)	6/29/2000 1:42:00 PM
From: Gus	Respond to of 34857

The name of the game is lowball. Jokers wild. No limits. Free kimchee. At stake are the heart and soul of QCOM's CDMAOne franchise: 27 million South Korean subscribers. Conflict Over IMT-2000 Technology Standard Escalating By Yang Sung-jin Staff Reporter With the final licensing procedure just a week away, the IMT-2000 technology standard issue veered into a smoky area as mobile phone service providers remain secretive about their preference. The Ministry of Information and Communication announced it would reveal the specifics about the number of licensees, screening method and technology standard on July 10. The final procedure will be consulted with industry experts and policy makers earlier next week before the formal announcement, fueling a number of speculations. The center of contention is the technology standard for the third generation wireless communication. A top ministry official said the government is likely to favor a free choice for the bidders, letting them to decide their own standards suited for business plans and marketing strategy. ``Although the free choice is a mainstream idea, I don't think all the bidders will choose the European GSM mode as suggested by the media,'' said Sok Ho-ick, director of the Telecommunication Business Promotion Bureau. Korea Telecom, a state-run telecom giant competing with rivals for the license, stressed it would select the standard for 3G service which will bring the biggest benefit to the country, Sok noted. Sok's remark is viewed as a subtle indication that Korea Telecom, whose largest shareholder is the government, may opt for the Qualcomm-led multicarrier mode of IMT-2000 rather than the European mode. The controversy flared as SK Telecom, the nation's largest mobile carrier, made known its intention to adopt the GSM-based direct spread type for 3G service. To reshape the market structure, Korea Telecom and LG Group, another bidder for the IMT-2000 license, are known to be pushing for a standard different from SK Telecom, the dominant player which took over Shinsegi Telecomm earlier this year. If SK Telecom embraces the GSM mode spearheaded by European solutions providers, Korea Telecom and LG Group may go in an opposite direction to adopt cdma2000, an extension of today's CDMA technology developed by Qualcomm. However, it is also possible that SK Telecom and Korea Telecom would choose Qualcomm's standard. Then, LG Group would be expected to follow suit since it could not create a viable market alone. The scenario hinges partly on the government's awkward position in relation to CDMA royalties, with a huge sum of money transferred to the accounts of Qualcomm, a San Dieo-based company whose shares hit a new low after the Korean government scrapped handset subsidies and forced chipset demand down. The ministry has repeated its ``let-it-be'' policy, saying that if the free choice option is adopted, the government will not force bidders to choose a specific standard. Service providers, of course, question the policy, citing the uncertainty shrouding Korea Telecom's final choice and possible U.S. trade pressure once Qualcomm's technology is forced out of the market. Earlier, Information and Communication Minister Ahn Byung-yub said the government may play an intermediary for royalties negotiations if it sets the technology standard and asks license bidders to follow, but such interference may not occur if the bidders are given a free choice. Ahn's remark was interpreted to suggest that the government will not help IMT license holders to cut down on royalty rates if all of them opt for the European mode. The government appears worried about the possibility that U.S.-led CDMA technology will lose its momentum. Minister Ahn also said the underlying dilemma for Korea is the mobile phone history which relied solely on Qualcomm's technology. Moreover, manufacturers which have poured into CDMA technologies might lose the domestic market overnight if all the 3G licensees favor the European mode. Sources familiar with the issue said all three major bidders are trying to get out of the monopolistic influence of Samsung Electronics, a dominant supplier of Qualcomm's IMT-2000 systems and handsets. hk.co.kr