To: slacker711 who wrote (8550 ) 12/14/2000 8:42:54 PM From: Eric L Respond to of 34857 Re: Decision time on 3G3 CDMA in Korea for 2GHz IMT-2000 Spectrum >> Four Korean Bidders Line Up For Three 3G Licenses Anne Young Total Telecom 14 December 2000 The Republic of Korea (South Korea) becomes the next country to sell off licenses for third-generation mobile services, with the winners to be announced Friday . The country has opted for the beauty contest method, rather than going down the more controversial auction route, and has set a fixed price of 1.3 trillion won (US$1.1 billion) per license. Fixed-line incumbent Korea Telecom, the mobile incumbent SK Telecom, Hanaro Telecom and LG Telecom are the four companies heading the bidding consortia. They submitted their bids in October. The deciding criteria will be technological capacity and a sound financial structure. Front-runners are considered to be Korea Telecom, via its Freetel subsidiary, and SK Telecom, leaving Hanaro and LG fighting it out for the third license. LG is considered by many analysts to be the weakest candidate, as it has far fewer subscribers than its nearest rival and is struggling financially. But Hanaro is seen by others as the weakest contender, given its lack of experience in the mobile market. Hanaro's saving grace could be that it is the only operator to opt for the cdma2000 third-generation mobile standard, while the other three have all said they will use wideband CDMA (W-CDMA). Hanaro was quick to take advantage of the government's preference that at least one operator should offer cdma2000, in order to support Korean equipment vendors such as Samsung, which developed the cdma2000 technology under license from Qualcomm Inc. It might have been to LG Telecom's advantage if it had also opted for cdma2000, rather than choosing the same technology as its stronger rivals. The Korean contest provides an interesting illustration of the global battle raging over future 3G standards. W-CDMA is widely seen as the most popular standard, and is the choice of Europe as well as large parts of Asia. W-CDMA, under the UMTS banner, provides an evolutionary path from existing GSM standards. On the other hand cdma2000 is the preferred standard of U.S operators, and provides a path from the existing CDMA One standard. << - Eric -