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SK IMT keeps silence on 3G bidding

December 30, 2002

SK IMT, a unit of SK Telecom, is not expected to announce its 3G equipment bidding result, worth more than 280 billion won ($227.5 million), anytime soon. The operator has set itself a deadline of December 31 but it looks likely that the result will be announced in the New Year. Industry analysts believed SK IMT would already have announced the result if it were not for the presidential election on December 19.

SK IMT plans to introduce WCDMA service in autumn of next year. It started the benchmarking test on September 30 and lasted till October 23. The five contenders involved in the testing were Samsung Electronics, LG Electronics, Nortel Networks, Alcatel and Nokia. SK IMT said they would select at least two final bidders for the initial phase of its WCDMA network installation. The company said it would have commercial WCDMA service in Seoul and Busan before extending the service to 13 major cities and other areas.

SK Telecom is offering 3G services, named 'June', using the CDMA2000 1x EV-DO platform, which is seen as a competitor to WCDMA. Telecom analysts say that SK Telecom will want to experiment with as many 3G services as possible through the EV-DO network before migrating to WCDMA 3G service. SK Telecom is planning a merger with SK IMT next year in a bid to integrate 3G service and cut out duplicate investments .

The result of the equipment bidding could have serious impact on equipment vendors. Losers could face a lost of reputation that could affect future equipment bidding. In May, Ericsson was disqualified in the WCDMA 3G mobile equipment bidding for KT ICOM, WCDMA license holder, which affected the company's image and causing layoffs in its Seoul office. Nortel Networks' reputaion was damaged when Taiwanese operator Chunghwa decided to choose Nokia as its equipment supplier despite Nortel offering the lowest price.

 


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