>> SK, KT given IMT-2000 license
Korea Herald
12/16/2000
Kim Min-hee
The 18-month long battle to win IMT-2000 service licenses drew to a close yesterday with just two applicants - consortiums led by SK Telecom and Korea Telecom - given the green light to deploy W-CDMA (wideband code division multiple access) networks.
Officials of Korea Telecom rejoice over the news that the Korea Telecom consortium was chosen for a license to offer IMT-2000 service in the asynchronous mode yesterday.
In keeping with dominant market expectations, LG-Glocom, a consortium led by LG Electrnoics, failed to grab a spot in the lucrative next generation telecom market as a W-CDMA provider, scoring 81 points out of a possible 100, just one point below Korea Telecom IMT's score.
As widely expected, SK IMT grabbed the number one position in the selection process with 84 points, convincing the 18-member jury it could provide the best IMT-2000 systems and services as well as technological know-how.
Hanaro Telecom-led Korea IMT-2000, the only operator to apply for a license to deploy an IMT-2000 service based on the cdma2000 mode, failed to win a license when it fell short of the minimum passing grade of 70 points.
In a press conference held yesterday, however, Minister of Information and Communications Ahn Byung-hyup revealed plans to move up the agenda to recruit new applicants for providing IMT-2000 services using cdma2000 technology from March to January, next year.
"Finding a cdma2000 operator is absolutely important for the balanced development of the Korean telecom industry. It's very regretful that the market appears to have jumped to the conclusion that W-CDMA will monopolize IMT-2000 services. What will matter in the end is not so much which technology is being used as which operator can offer the best-quality contents and services to users," Ahn said. "We must not overlook cdma2000 in which we have accumulated so much know-how in the past three or four years," he added.
Ahn said Korea IMT-2000 is welcome to reapply in January by coming up with improved business plans, particularly in terms of share holder composition and technology development.
Ahn also indicated, albeit cautiously, that it would be desirable for LG Glocom not to give up on IMT-2000 business totally but consider the possibility of switching to the cdma2000 mode.
One criteria which most affected the selection process was the contenders' accumulated technological know-how. SK IMT got 84 points out of a total 100 in this category, followed by Korea Telecom IMT with 81.9, and LG Glocom with 80.9 points. Korea IMT-2000 scored a mere 56.4 points.
Korea Telecom IMT succeeded in driving LG Glocom out of the IMT-2000 race by scoring much higher mainly in two categories: potential ability to develop IMT-2000 technology and services and financial competency, including the accumulation of share holders.
Korea Telecom IMT scored 85.6 points in the former category, compared to LG Glocom's 81.8 points. In the latter category, Korea Telecom-led consortium scored 79.3 points, slightly ahead of LG's 79.2 points.
Judges also said they gave considerable weight to an operator's compatibility with other operators regarding networks and countermeasures in the event of emergencies.
Meanwhile, its lax make-up of shareholders is seen as one of the major reasons for Korea IMT-2000's failure to obtain a license. The Hanaro-led consortium scored a mere 46 points while the three other contenders earned between 74 and 76 points.
On Oct. 31, Korea IMT-2000, which had given up on the bid, made an unexpected return to the competition, made up of just Hanaro and 36,000 public stockholders. In addition, Hanaro has virtually no experience in wireless communications.
An 18-member expert panel carried out a ten-day screening process Dec. 5-14 in Chonan, Chungchong Province, during which they cut all outside contact. According to the government's bidding guidelines, the jury was asked to select three types of operators: one that deploys cdma2000 mode, another that adopts W-CDMA mode and one other.
Risking much of their future in the telecom business, however, consortiums led by SK Telecom, Korea Telecom and
LG Telecom all insisted on deploying the W-CDMA technology, which is projected to take up 80 percent of the market. Cdma2000, meanwhile, has been deployed in Korea, the United States and a few other countries. Recently, China declared that it will also introduce cdma2000 technology.
IMT-2000 is a new cellular phone technology which greatly expands the size and speed of transmissions, allowing users to receive high quality color video images.
The service promises to provide 2Mbps transmission in stationary environment, 384 kbps for pedestrians and 144 kbps in moving vehicles.
Due to its wide bandwidth, offers wireless multimedia services, faster mobile Internet and intranet access and e-commerce applications in addition to voice services. It would also provide seamless services between fixed and wireless networks as well as global roaming.
Operators are aiming at commercializing the "dream" service around May, 2002, when Korea co-hosts the 2002 World Cup Games. However, industry experts predict it the service won't become a mainstream method of communication until 2005 or later.
Market predictions differ depending on different analyses, but as many as 30 million people are expected to subcribe to one form of IMT-2000 service or another by 2007.
Upon hearing the news, SK Telecom released a statement vowing to grow into a global telecom operator by forming strategic alliances with leading foreign IMT-2000 service providers. SKT is expected to enter a partnership with Japan's NTT DoCoMo and China Mobile.
"The government defined IMT-2000 as a mobile telecom service using a different frequency range from the second generation mobile telecom service. Therefore SK Telecom will continue to retain the no. 1 wireless carrier position based on the company's unparalleled networks and experience in operation," said a high-ranking SK Telecom official. "Among Korean operators, SK Telecom alone has experience in advancing to foreign telecom markets and the firm plans to involve other local companies, including small-and-medium sized ones, in its overseas projects," he added.
Korea Telecom attributed its victory to its strong infrastructure in both fixed-line and wireless areas, as well as technological prowess.
"We hope to provide IMT-2000 service that gives priority to user satisfaction. We are also determined to offer services that are clearly differentiated from existing wireless services," a Korea Telecom official said.
Korea IMT-2000 expressed regrets about the outcome of the selection but said it would humbly accept the results. An official stressed, however, that the consortium will reapply and will prepare for the commercialize of the service beginning May, 2005.
"It's regretful that existing chaebol telecom operators are only interested in raking in wealth for themselves while the country has by far the leading edge in cdma2000 technology," the official said.
The scene was gloomy at LG Telecom's IMT-2000 office in Yoido, with employees were unable to express their shock and bewilderment.
"We had no doubt we will come out a winner. How could this happen?" an LG Telecom employee asked.
Officials of LG Telecom, meanwhile, said it will announce later whether it will reapply for a cdma2000 license or not. <<
- Eric - |
