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To: ronho who wrote (99729)	5/23/2001 10:13:08 AM
From: ronho	Read Replies (2) \| Respond to of 152472

CHINA solicits quotes for 1X with 1X-EV possibly to follow By Lee, Eun-yong Wednesday, May 23, 2001 China Unicom, a provider of second mobile communication services and code-division multiple access (CDMA), has decided to launch its synchronous 2.5 generation mobile phone (CDMA2000 1x) service by the end of the year. Consequently, both domestic and foreign communication equipment providers are preparing themselves for obtaining the right to supply the equipment. According to a source related to the industry on May 22, China Unicom is planning to select a supplier for the CDMA 2000 1x equipment who can afford the 500 million dollar tag for the three million lines that will be required, by the end of the year. Furthermore, China Unicom intends to begin conducting business on a trial basis and is set to begin providing commercial services as of next year. To achieve these aims, China Unicom has scheduled a conference for technological exchange regarding CDMA2000 1x technology for the end of the month. The contractors for the second generation CDMA equipment, such as Samsung Electronics, Lucent Technologies, Motorola, Ericcson, and Nortel Networks have been invited to attend the conference. Based on the outcome of the planned CDMA2000 1x conference, China Unicom will reportedly prepare a concrete plan for the provision of third generation mobile communication services. In response to these moves by China Unicom, both domestic and foreign communication equipment providers are hurrying to assert their dominance in the CDMA2000 1x and third generation mobile communication equipment market that has been created by the Chinese concern. Given Samsung Electronics' experience in supplying SK Telecom and KTF with a commercialized CDMA2000 1x system in Korea, it is convinced of its superiority in international competition. Similarly, LG Electronics, which recently entered the North American CDMA2000 1x equipment market, is expecting that new opportunities will arise as a consequence of the China Unicom announcement. Samsung Electronics said, "The second generation CDMA equipment that we have been contracted to supply to China Unicom can easily be converted into CDMA2000 1x, what's more, the CDMA2000 1x EV(Evolution)-DO(Data Only) system, an evolved model, is about to be developed, thus showing our superiority in the technology". Also emphasizing its technological superiority, LG Electronics said, "We at LG Telecom have succeeded in constructing a stable commercial CDMA2000 1x system and are exporting the related systems to the American BWI, all of which testify our preparedness in technological capability". A person related to the industry predicted, "Domestic equipment providers are strong competitors in the bid to provide the 2.5 generation equipment order of China Unicom. Furthermore, they provided the CDMA2000 1x service for the first time in the world and have considerable experience in installing the related systems".