Samsung, Qualcomm to Join CDMA IMT-2000 Consortium

date: 16th February 2001, source by: chosun.com

Samsung Electronics and U.S. firm Qualcomm have officially announced that they will participate in the CDMA-based IMT-2000 consortium that is currently being formed in Korea. Despite the announcement, industry observers say many outstanding issues remain. Officials involved in setting up the consortium said they have asked the Ministry of Information and Communication (MOIC) to reduce the amount IMT-2000 operators must contribute to the government, but that the government has yet to decide on the issue.

The consortium had earlier asked the ministry to reduce the required W1.5 trillion contribution to W220 billion. Samsung Electronics said it decided to contribute about 1% of the equity of the consortium as a manufacturer of CDMA equipment. According to the consortium¡¯s proposal for equity distribution, Hanaro Telecom is expected to hold a 10% stake; Samsung and other large-sized firms a combined total of 20%; small and medium sized firms and venture firms 30%; individual investors 10%; and foreign investors, including Qualcomm, 30%. The final equity distribution will, however, not be determined until February 20.

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