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To: William Hunt who wrote (99602)5/21/2001 8:51:30 AM
From: JohnG  Respond to of 152472
 
CDMA, WLL Spearheading Overseas Export Drive

By Lee, Eun-yong
Monday, May 21, 2001

Code division multiple access (CDMA) and wireless local loop (WLL) equipment is expected to turn a
new page in the history of domestic communication equipment exports, this year. In particular, WLL
products for fixed communication, whose market has been dominated by LG Electronics, have
increasingly been exported to developing countries while Samsung Electronics' CDMA equipment is
securing more demand in industrialized nations. Taken together, this has laid a solid groundwork for
the nation's equipment exports.

On May 20, Samsung Electronics (chaired by Yun Jong-yong sec.co.kr) projected that it
would achieve 3.5 to 4 billion dollars in CDMA and GSM terminal exports this year, following last
year when it recorded 2.7 billion (exchange rate at 1,200 won to the dollar) by selling them in 20
overseas markets. The company has already won 150 to 200 billion dollars-worth of export orders
(Chinese Unicom) this year.

Furthermore, as its entry into the global terminal market is in a full-fledging stage, this year's total
export amount is likely to exceed the 4 billion target. LG Electronics (chaired by Gu Ja-hong
lge.com) is also beginning to reap profits in the WLL field, for which it initially advanced
into the overseas markets back in 1997.

The electronics maker posted rather disappointing sales amounting to 30 million dollars, and 100
million in exports, for its WLL systems and WLL terminals respectively last year. However, it has set
this year's target export amount at 450 million dollars (300 million in systems and 150 million in
terminals).

As such, LG and Samsung are emerging as leaders in the global fixed (WLL) and mobile
communication (CDMA) market respectively. In fact, LG Electronics has topped the global WLL
terminal market with a 40% share acquired by providing 500,000 out of the total 1.23 million units
required worldwide last year.

The company expects that its market dominance will continue, and that it may expand its market share
to 53% with 800,000 units forecasted in sales this year. Samsung Electronics, who sold 20.63 million
mobile phone terminals at home and abroad last year, ranked 6th with 5% of the global market share.
It is to increase exports this year, aiming for 4th place.

* Minibox

WLL (Wireless Local Loop) is a means of fixed communication using CDMA technology with
inexpensive installation costs. It is therefore considered a suitable communication vehicle for
developing countries with large territories. LG Electronics has been participating in backbone (wired)
communications network projects in China, India, Vietnam, Russia, Rumania and the Ukraine, and is
currently gearing up to enter the South American markets.

Conversely, Samsung Electronics halted production of WLL equipment in 1997 and has been
focusing on CDMA mobile communication devices since then. In particular, it has recently made its
debut in the Chinese market since it first presented the CDMA system in the region three years ago
etienglish.com



To: William Hunt who wrote (99602)5/21/2001 11:23:52 AM
From: Pierre  Respond to of 152472
 
Key question ---Royalty Rate ?

I second the question. Anyone have a clue? Also, if this deal triggers a reduction for Korean producers, could we see a net loss in revenue for the near term?

Pierre