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