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.

Technology Stocks : Qualcomm Moderated Thread - please read rules before posting -- Ignore unavailable to you. Want to Upgrade?

To: cfoe who wrote (2207)	8/17/2000 12:22:31 AM
From: DaYooper	Respond to of 197226

hk.co.kr Bidders for IMT-2000 Remain Undecided Over Technical Format Four companies that are expected to participate in an upcoming bidding to provide IMT-2000 (International Mobile Telecommunication) services remain undecided over the technical format. The government apparently has its heart set on the synchronous platform used in the United States but companies like Korea Telecom and SK Telecom appear to prefer the asynchronous system that is the standard in Europe. The discussion over which is better has been going for months but the time has now come for the companies to decide on the technical format since they must submit a business proposal sometime next month. The four companies, including LG Telecom and Korea IMT-2000, a consortium led by Hanaro Telecom, are now in the process of finalizing their consortium and dividing up the ownership. But a more important aspect of what will take place over the rest of the month is which of the two technical formats they will choose in submitting their business proposals since the Ministry of Information and Communication has indicated that it could tip the scale. ``The government has said it will allow the industry to decide on its own which of the two technical formats they will adopt but individual companies are not at liberty to do so,'' said one senior ministry official. He said equipment manufacturers like Samsung Electronics and Hyundai Electronics Industries have decided on the synchronous system and their decision will have to be reflected in the business proposal. ``It is not a decision that individual companies can make on their own and the opinions of equipment producers and other related enterprises must be taken into account,'' the official pointed out. However, the reality is that while they have not said it in so many words, perhaps for fear of getting on the wrong side of the government. Both SK Telecom and Korea Telecom apparently prefer the asynchronous system, which accounts for 70 percent of the global market. ``With privatization just ahead of us, and considering how important this project is, we cannot make a decision based on external pressure,'' said one senior Korea Telecom official. He said if at least one of the three winning bidders must adopt the synchronous system, it should be SK Telecom, which currently has more than 50 percent of the market share using CDMA (code division multiple access) technology that is similar to the synchronous standard. SK Telecom, for its part, has hinted at its preference for the asynchronous system, recently presenting the results of tests run on the ATM (asynchronous transfer mode) switch in collaboration with 63 companies with which it has formed a consortium. ``We have conducted extensive testing on the ATM switch. If one of the three winners is to adopt the synchronous system in consideration of Korea's relationship with the United States, it should be a state-run enterprise,'' said one SK official, pointing his finger at Korea Telecom. While the bidding companies appear to be leaning hard on the asynchronous system, some industry analysts say that SK could be using it to leverage its takeover of Powercomm, a company specializing in the leasing of a nationwide optical fiber network. ``It remains to be seen what they will do but they certainly cannot completely disregard the preference of the government, and time is quickly running out,'' one analyst said. With SK and Korea Telecom playing the finger-pointing game, LG and Korea IMT-2000 are leaning back, seemingly enjoying it, although they themselves will have to make a decision soon. jakenho@koreatimes.co.kr <