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WCDMA 3G setback in South Korea

February 17, 2003

South Korean operators SK Telecom and KTF are focusing on its CDMA2000 1X EV-DO data services despite plans to launch WCDMA networks later in the year. The main concern now for both operators is launching new multimedia services on its EV-DO network.

WCDMA has taken a back seat because investors expressed concerns over the commercial viability of the technology. Analysts believe the operators are weary on investing in the unproven WCDMA platform.

The government has strong backing for a dual wireless system in the country. All three carriers – SK Telecom, KTF and LG Telecom - in the country has deployed CDMA2000 networks while KTF and SK Telecom plan to launch WCDMA in June and September respectively.

Investors expressed worries over the overlapping facility investment and questioned the commercial viability of the dual wireless system.

"Some analysts and investors are still misunderstanding the W-CDMA investment plan, and we will help them better understand the fact that SK Telecom will be very flexible in executing the investment for W-CDMA service," SK Telecom spokesman said.

"If we pour some money into a new business without finalizing budget plans, albeit roughly, people could interpret it in a negative way, and we don't want such thing to happen," he said.

 


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