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SK Telecom not sure on W-CDMA investment

April 10, 2003

SK Telecom reportedly plans to slash its 2003 investment budget for 3G services by around 80%, an online media report said on Thursday.

The firm will revise down the investment plan for W-CDMA services to about 100 billion won ($80.38 million) from 520 billion won earlier, MoneyToday reported, citing industry sources.

But SK Telecom told the press nothing had been decided yet.

"Our review on the investment plan [for 2003] has not been finished yet," Koh Chang-kook, a SK Telecom spokesman, said.

He added the company would announce a revised investment plan as early as late this month or early next month.

Pressures have mounted on the mobile operator since it unveiled a controversial 2.1 trillion won capital expenditure plan for 2003 in January, sending its shares into a tailspin.

The 2.1 trillion won plan is for its total capital expenditure, including around a quarter penciled in for W-CDMA.

SK Telecom has been pushing on with plans for its 3G services, in contrast with its global peers who have delayed 3G rollouts, pressured by a combination of wary capital markets and technological challenges.

 


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