To: foundation who wrote (3095 ) 9/14/2000 9:52:06 AM From: nbfm Respond to of 197112 Korea Delays Mobile Internet Licensing Amid Standards Dispute Seoul, Sept. 14 (Bloomberg) -- South Korea's Ministry of Information and Communications has delayed for one month an application deadline for new high-speed Internet access services in the hope bidders will reach a consensus on standards. Information Minister Ahn Byung Yup met representatives of the three bidders -- SK Telecom Co., LG Group, and Korea Telecom Corp. -- and three equipment makers on the decision, a ministry official said. The government plans to award licenses by year's end. The delay highlights a conflict over standards between the government and operators. The ministry reportedly wants SK Telecom to adopt a version of the code division multiple access, or CDMA, standard from U.S.-based Qualcomm Inc. SK Telecom has said it would rather switch to wideband-CDMA, developed in Europe. ``The government probably wants more time to resolve this issue of what kind of technology standard should be used, especially with SK Telecom insisting on switching to the alternative standard from CDMA,'' said Bahn Young One, a telecommunications analyst at Good Morning Securities Co. The nation is the largest market for CDMA with 43 percent of 60 million users worldwide. Samsung Electronics Co., Korea's largest electronics maker, in August asked the government to press at least one of Korea's three bidders for licenses to choose a new mobile Internet standard it supports, Qualcomm Inc.'s cdma2000. Yun Jong Yong, chief executive of Samsung, was quoted as saying last weekend, ``CDMA should lead the next-generation phone service technology, considering Korea's own interest,'' a company spokesman said. Hands Off In its policy statement on the licensing process, the government said it will ``leave the choice to the industry.'' The three bidders for the licenses -- Korea Telecom Corp., SK Telecom Co. and LG Group -- subsequently said they would use the wideband- CDMA standard. If the government leaves the decision to service providers, they've said they will select the W-CDMA standard. That will mean Korea's 26 million cellular phone users will be able to use their phones overseas. Many countries worldwide are planning to adopt the standard. Rejecting cdma2000 could be a setback for Korea's phone equipment and handset makers who have so far developed equipment based on the Qualcomm standard. Samsung said its W-CDMA development is two years behind its cdma2000 research. Mobile Internet services in Korea are scheduled to begin at the end of 2001. Qualcomm says it will receive royalties whatever CDMA standard is chosen but has said its chipset sales may be hurt if W- CDMA is used instead of cdma2000. Qualcomm revenues come both from licensing CDMA technology and selling chips based on that intellectual property. Sep/14/2000 5:47 ET For more stories from Bloomberg News, click here. (C) Copyright 2000 Bloomberg L.P. Any redistribution of Bloomberg content, including by framing or similar means, is expressly prohibited without the prior written consent of Bloomberg L.P. Any reference to the material must be properly attributed to Bloomberg News. The information herein was obtained from sources which Bloomberg L.P. and its suppliers believe reliable, but they do not guarantee its accuracy. Neither the information, nor any opinion expressed, constitutes a solicitation of the purchase or sale of any securities or commodities.(C) Copyright 2000 Bloomberg L.P. BLOOMBERG, Bloomberg News, Bloomberg Financial Markets, Bloomberg Television, Bloomberg News Radio are trademarks, tradenames and service marks of Bloomberg L.P.