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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting -- Ignore unavailable to you. Want to Upgrade?

To: foundation who wrote (31166)	1/14/2003 8:37:16 AM
From: foundation	Read Replies (3) \| Respond to of 197060

(Korean) Gov't to Promote 2ghz-Band IMT2000 Service By Kim Kyou-tae Tuesday, January 14, 2003 The government is now crafting a comprehensive plan to promote 2ghz-band IMT2000 service, which includes subsidizing for handsets and lowering data communication service fees. Then the 2ghz band services, now on the verge of breakdown facing the consolidation of 2G and 3G services, are expected to draw mobile phone users again. If the 2ghz service gets on track again, in particular, it will likely accelerate the second round of facility investment in IMT2000, buoying up the lackluster information technology market. The Ministry of Information and Communication said on Jan. 13 that it would soon lower data communication service fees to promote 2ghz IMT2000 and is also considering a variety of measures including differentiating service fees between 2ghz and other 2G bands. "Adoption of IMT2000 will remain limited with the service fees set high, so we now plan to introduce the flat service fee system permanently instead of temporarily," said an MIC official. "We are also mulling applying different service fees between 2ghz and the existing 2G network-based services to promote the former," he added. Once 2ghz service fees are lowered, wireless carriers are expected to focus on WCDMA rather than cdma2000 1x EVDO using the existing spectrum. The ministry also plans to allow mobile phone companies to offer subsidies for 2ghz IMT2000 handsets, while continuing to ban subsidies for EVDO handsets. "Now that wide penetration of EVDO handsets is expected by March this year, lifting the ban on EVDO might lead to the collapse of the entire system," said an official at MIC. "We have an exception clause aimed to invigorate a beleaguered industry, therefore we will reinstate the subsidizing for IMT2000 service beginning June this year." The ministry is also mulling offering incentives for those investing in IMT2000 firms, and introducing phone number mobility among 2ghz-band services earlier than scheduled. To this end, MIC will hold an IMT2000 business council meeting on January 24 to discuss how to promote services with top and high-ranking managers at wireless carriers. With the 2ghz promotion plan, IMT2000 facility investment in rural areas, earlier expected to be delayed to next year, will come ahead of the schedule and the government will likely spend additional 200 to 300 billion won on building facilities. etienglish.com ========== Rather remarkably, the Korean Government - the MIC - is intent on stifling cdma2000 evdo services to the advantage and promotion of wCDMA. This includes both government subsidized handsets and rates. They are consciously working to limit the success of evdo. Faced with directly working with the limitations of the technology, it will be interesting to see how carriers respond to MIC's offensive. As recently as August of 02 - before MIC laid down the law - both SK and KT called wCDMA useless. Message 17856597 It will be even more interesting to see how subscribers respond to a buggy, much slower service. "Now that wide penetration of EVDO handsets is expected by March this year, lifting the ban on EVDO might lead to the collapse of the entire (wCDMA IMT2000) system," said an official at MIC. "We have an exception clause aimed to invigorate a beleaguered industry, therefore we will reinstate the subsidizing for IMT2000 service beginning June this year." What a bizarre, bizarre world.