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To: S100 who wrote (82839)10/10/2000 9:10:43 AM
From: S100  Read Replies (1) | Respond to of 152472
 
Domestic firms boost efforts to enter China's CDMA mobile phone market

With signs growing that China may adopt CDMA wireless technology, Korean
wireless equipment makers are accelerating their efforts to enter the world's second
largest mobile market.

In a recent interview with a Korean daily, Chinese Prime Minister Zou Rongji
hinted that China's state-run telecom carrier may opt for the CDMA wireless
standard, in which Korean firms have a competitive edge in handsets and network
systems.

In the strongest signal of late that China is leaning toward CDMA, Zou and
China's chief telecom regulators reportedly met last week with Irwin Jacob, chief
executive of Qualcomm of the United States, which pioneered the technology and
makes money from royalties on handsets and equipment.

The Chinese leader is to discuss the issue during a summit meeting with President
Kim Dae-jung when he visits to attend the ASEM (Asia-Europe Meeting) Summit
Oct. 20-21.

It is still uncertain how the issue will be settled in the meeting, given the
inconsistencies in the stance of China on the wireless standard, which have long
made Korean telecom equipment makers nervous.

But company officials expect that the discussion will be in a direction favorable to
their business in China.

China uses GSM (global service for mobile communication), a European
standard competing with the U.S.-developed CDMA, for the vast majority of its
wireless networks.

The nation will soon run out of available frequencies with nearly 10 million new
users signing up every three months. Its mobile user base expands 28.6 percent per
year, outpacing that of convention phone subscribers which grow 16 percent a year.

"CDMA makes more efficient use of the available frequency, and offers a better
chance to meet the surging demand," an official of the Information Cooperation
Office at the Ministry of Information and Communication.

CDMA is cheaper to install and offers better call quality than GSM, and makes it
easy for carriers to evolve into the next generation mobile service, he said.

If China opens its wireless market to CDMA, Korean firms like Samsung
Electronics, LG Electronics and SK Telecom, stand to make significant gains.

"The possibility that China will choose CDMA is higher than ever. Such a
decision will help clear the uncertainty weighing on the business prospect of Korean
telecom-related firms," says Huh Young-min, an analyst at Samsung Securities.

Should China adopt the standard, it will become the world's largest CDMA
market estimated at $5 billion over the next five years, according to Lee Hyo-jong,
an official of network business unit of Samsung Electronics.

In this case, China Unicom, the nation's No. 2 telecom carrier, is expected to
deploy an extensive CDMA network that supports some 70 million subscriber lines
by 2004. The company has been ordered by the government to take over a CDMA
network, known as the Great Wall, run by the army.

To grab the initiative in the nascent market, Korean companies are enhancing
their efforts to enter the market.

Samsung has signed agreements with two Chinese firms including Shanghai Bell
to jointly develop network systems and handsets. The company will officially launch
a wireless research center Thursday in Beijing's Zhongguancun Technological Park,
China's answer to 'Silicon Valley.

LGE set up a joint venture Shenzhen ZTE-LG Mobile Communications in June
with ZTE Corp., China's largest telecom equipment manufacturer. The two partners
will open a joint research and development center Thursday.

The $30 million joint venture located in Shenzhen is expected to start producing
CDMA mobile telecom systems at the end of the year,Through the research
centers, the Korean firms will develop equipment tailored to China's telecom
environment as well as transfer technology, a condition that China demands for
allowing foreign companies to enter the market.

SK Telecom is also stepping up efforts to make inroads. The company has been
working with ZTE Corp. to design a CDMA network system, while talks on
technological cooperation with China Unicom has been underway since Unicom
president visited Seoul last month.

Telson Electronics and Beijing Telecom are working to manufacture wireless
communication equipment in China as well. Kolon Data Communication is also
working with ZTE Corp. to jointly develop repeaters, a main component used to
make switching systems.



Updated: 10/11/2000

koreaherald.co.kr



To: S100 who wrote (82839)10/10/2000 9:35:06 AM
From: slacker711  Read Replies (1) | Respond to of 152472
 
The company is pushing to win a contract to supply equipment needed to deliver some 600,000 subscriber lines in the nation.

The successful testing, conducted last month in Calcutta, will improve its prospects to win the deal, which is expected to generate $70 million in sales revenue. India is expected to establish 2 million subscriber lines of the wireless system by 2001.


I love being wrong <g>....A while back, I declared CDMA dead in India due to the fact that it seemed like they had comitted to GSM as the mobile standard of choice. However, it looks like India will actually be rolling out a WLL network of some size. This is the first article that I have seen that quotes a signficant number of lines to be deployed....all the rest were for a much smaller number.

Slacker