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.

Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: LLCF who wrote (68529)	2/16/2001 11:55:21 AM
From: marginmike	Read Replies (2) \| Respond to of 436258

China/Domoco have the money as does ATT(from domoco). As for CDMA upgrade its cheaper then 3G and increases capacity 3X so in a pinch SPRINT/VZ will go 1xrt. I do agee that 3G in Europe is going to be pushed off. However The wireless biz will have solid(not spac growth).

To: LLCF who wrote (68529)	2/18/2001 8:41:35 PM
From: stomper	Read Replies (1) \| Respond to of 436258

Korea's 3G plan faces funding problem By Shin Hye-son Staff reporter A lack of interest among corporate investors has slowed up the introduction of the third-generation telecom service, IMT-2000, often hailed as "a dream mobile-phone technology." According to Korea Telecom (KT) and SK Telecom (SKT), which recently received the last payments for shares in their IMT-2000 consortium, some 5 to 7 percent of companies, which had promised investments, changed their minds. Officials said they had only expected one to three percent of companies would give up investment plans or ask for their stakes to be reduced. Among those giving up their share is Onse Telecom, abandoning a 2-percent stake in the KT consortium. KT and SKT were awarded the rights to deploy networks based on W-CDMA (wide code division multiple access) technology at a bidding held last December. The IMT-2000 business based on W-CDMA mode has been referred to as a profitable investment opportunity. But recently some experts argued that the launch of the service, scheduled for May in 2002, should be postponed since it is hard to estimate the demand for the service at the moment and more time is needed for equipment development. The lack of interest in IMT-2000 is mainly being attributed to financing problems at companies. "Amid a continuing financial crunch, companies are preferring businesses to yield short-term profits and cash liquidity, while the next-generation telecom business will see profits only after 2005," said an analyst. KT and SKT plan to take over the forfeited stakes or reallocate them to other consortium members or strategic investors. Meanwhile, Hanaro Telecom's attempt to form a grand consortium bidding for a cdma2000 mode license also looks as though it may be derailed after large corporations refused to take part in it. Hyundai Electronics dropped its investment plan citing "internal problems," while the LG Group continues to maintain that the business would be unprofitable. Raising hopes, Hanaro said Wednesday that Samsung Electronics and Qualcomm would participate in its 3G consortium. But immediately after, Samsung announced that its investment would be less than 1 percent. Qualcomm also reaffirmed its previous position that its would focus on equipment manufacturing, rather than getting directly involved in the telecom service market. Its participation is also expected to be relatively insignificant. Analysts said that Samsung and Qualcomm's investments represent little more than symbolic support and that could make it more difficult for Hanaro consortium to lure a meaningful investment from Verizon Wireless, the largest U.S. mobile telephone company. Verizon's participation is considered to be vital in Hanaro's quest for the cdma2000 license as the U.S. company has the money and technology that the Korean company badly needs to shore up its qualifications. To solve the problem, a committee pushing for the Hanaro consortium asked the government for support, including a cut in the fee from 1.15 trillion won to 220 billion won. "The cut is essential because a cdma2000 service provider is at a disadvantage in competing with operators of interim services such as 'cdma2000 1x" and HDR (half duplex repeater), which are similar to the envisaged cdma2000 service," said an official of Hanaro. KT plans to launch the interim services beginning this March. THE KOREA HERALD February 17, 2001, Saturday