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: JohnG who wrote (2707)	9/3/2000 9:56:29 AM
From: slacker711	Read Replies (1) \| Respond to of 196649

More speculation on Korea..... koreaherald.co.kr Seoul likely to license two cdma2000, one W-CDMA service providers With the government scheduled to start accepting applications for the three available IMT-2000 operator's licenses Sept. 25, the three consortiums that are in the running are now in the process of clearing the last hurdle, that of deciding on a technology standard for 3G (third-generation mobile telecom service). According to industry sources, Korea Telecom (KT), SK Telecom (SKT) and LG are working to complete the application forms by the end of this week, finalizing plans for technology cooperation with their respective partners. The Ministry of Information and Communication (MIC) is accepting applications for 3G licenses Sept.25-30. Hitherto, all three consortiums, while agreeing in principle with the ministry's call for multiple standards, have said that they would like to deploy the W-CDMA (wideband-code division multiple access) standard that is projected to take 80 percent of the global market for 3G services, rather than the cdma2000 standard developed by Qualcomm, a U.S. firm. However, in light of the general consensus among the ministry and the various companies concerned on the need for multiple standards, industry officials predict that in the end there would be either two W-CDMA operators and one cdma2000 operator or vice versa. The ministry is hoping for a "two cdma2000, one W-CDMA" scenario which would guarantee the country's continued lead in the CDMA field, a technology which Korea was the first in the world to deploy commercially, while also making sure that it participates in the W-CDMA market. LG TeleCom (LGT) and LG Electronics (LGE), formerly LG Information and Communications, have said from the onset of the debate that they would deploy W-CDMA service and the government seems to have no objection to that. Hence, the battle of standards is being fought between KT and SKT in which either one company or both will end up taking cdma2000. At the moment, both wireless operators are rejecting cdma2000, sticking by W-CDMA. "We promised our consortium shareholders that they will not suffer losses because of the standard issue," said a high-ranking official at KT IMT-2000 Consortium. However, he added, "If SKT decides on cdma2000, we will not insist on W-CDMA," indicating that it KT is open to cdma2000 if SKT will take it also. SKT, meanwhile, seems resolute on deploying W-CDMA. The company argues that it is part of its globalization strategy, which includes entering other Northeast Asian wireless markets, as W-CDMA will likely account for up to 80 percent of the global wireless telecom market. Also at stake is the on-going negotiation with Japan's NTT-DoCoMo over an investment deal which is premised on the dominant wireless service operator here deploying W-CDMA service. However, a ministry official pointed out that SKT had only spoken out for W-CDMA at the third and last public hearing on IMT-2000 operator selection procedure. "It is not true that the company had decided on W-CDMA sometime ago," he argued. Industry sources also noted that there have been intense debates within SKT over the two rival standards and that the decision to go along with W-CDMA was made less than two months ago. "There is nothing more I can do on the standards issue," said Son Hong, director-general of telecommunications policy bureau at the ministry. Yet, he said that things will eventually be resolved in accordance with the government's wishes, saying there is still plenty of time left and hinting that the final decision could be reached through high-level talks. There have been reports that the Ministry of Finance and Economy is pushing for SKT to adopt cdma2000 in consideration of Korea's international competitiveness in the CDMA market. "It would be easier for a company with an owner, rather than the ownerless KT, to reach a decision," Son said, suggesting that there is a high possibility that SKT could reverse its position. However, things are not so simple for SKT. The company emphasizes that its foreign investment deal with NTT-DoCoMo, which happens to deploy W-CDMA, is being stalled by the standards debate. So far, the most likely picture is one of SKT and KT deploying cdma2000 and LG going ahead with W-CDMA. However, if SKT insists on adopting W-CDMA , the 3G market here could see two W-CDMA operators and one cdma2000 operator. Updated: 09/04/2000 by Kim Hoo-ran Staff reporter