Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : The Critical Investing Workshop -- Ignore unavailable to you. Want to Upgrade?

To: Sully- who wrote (25194)	7/12/2000 11:58:57 PM
From: Sully-	Respond to of 35685

SK Telecom in Final Talks With Japan's NTT DoCoMo (Update1) 7/12/00 7:28:00 PM Source: Bloomberg News URL: cnetinvestor.com Seoul, July 13 (Bloomberg) -- SK Telecom Co., South Korea's biggest wireless company, said it is close to an agreement to sell a stake to NTT DoCoMo Inc., forging an alliance to link the two largest mobile phone providers in Japan and Korea and connect 46 million phone customers. Talks on DoCoMo taking a stake are at the ''final stage,'' said Lee Hang Soo, a spokesman for SK Telecom, adding that nothing has been decided. DoCoMo declined to comment. NTT DoCoMo, which yesterday agreed to join forces with Royal KPN NV and Hutchison Whampoa Ltd. to strengthen access cell phone users in Europe, is looking to take a stake in the Korean company to spread the use of its technology for high-speed Internet services. SK Telecom, Korea's No. 1 mobile service provider with 15 million of the county's 26 million subscribers, is almost certain to win one of Korea's three licenses to provide high-speed Internet access through mobile phones. DoCoMo plans to be the first cellular phone company in the world to offer the new technology when its services begin next May. The company supports a cellular phone technology standard called wideband code division multiple access. SK Telecom and other Korean operators said they'll adopt the standard instead of a rival system produced by the U.S.'s Qualcomm Inc., though the U.S. company will continue to earn royalties from the use of the CDMA standard. Korea will receive applications by September and award the licenses by the end of the year. Adopting the same technology means subscribers to DoCoMo and SK Telecom would be able to use the same phone handsets in either country. Phone companies are typically able to charge much higher fees for roaming services than for domestic services. Last month, people familiar with Korea's No. 1 cellular phone service provider said NTT was in talks to buy as much as 10 percent of SK Telecom. Existing Partnership NTT DoCoMo and SK Telecom already have an agreement allowing their subscribers travelling to either Japan or Korea to borrow phones compatible with the local network in which they're visiting. They are also cooperating on technology that would allow their subscribers to use the other's network without changing handsets. DoCoMo also wants to expand its i-mode mobile Internet service globally through overseas alliances. The i-mode service enables cellular phone users to browse web pages, reserve airline tickets, make bank transfers and play video games. SK will introduce a new mobile Internet service by October based on the IS-95C interim standard, investing 500 billion won ($445 million) in equipment this year. The standard will provide data transmission capabilities up to a third faster than DoCoMo's current i-mode service. DoCoMo has said it is not prepared to become a major shareholder in any foreign company and will seek only minority stakes -- around 15 percent -- in overseas carriers as it expands. DoCoMo shares rose 10,000 yen, or 0.3 percent, to 3.18 million in morning trade.