content area
Press Release
SK Telecom and China’s Dong-Fang Telecom Establish a Joint Venture Company for the Co-Marketing of Cellular Service.
2003.06.04 PrintThe joint investment contract signing ceremony between SK Telecom and Dong-Fang Telecom was held on the 5th of June.
The two companies will carry out cellular service marketing activities in china, as well as handset distribution.
SK Telecom has striven to launch its CDMA cellular service in China since the year 2001. In line with this, the company has furnished a variety of technological training programs, and consulting services for network construction, to Chinese mobile communications operators.
Now SK Telecom is ready to leap into the Chinese cellular service market using the experience and know-how accumulated in the Korean market.
SK Telecom announced that the company and Dong-Fang Telecom’s joint investment contract signing ceremony, was held in Shanghai China, at 4 p.m. on the 5th of June.
Dong-Fang Telecom is a manufacturer of mobile communication system equipment and terminals. Participating in the ceremony were high-ranking officials from both companies.
This included Moon Soo Pyo, president of SK Telecom, and Sujixing, chairman of Dong-Fang Telecom.
’FaceOne’, the Joint Venture (J/V) company established by SK Telecom and Dong-Fang Telecom, will be responsible for carrying out cellular service marketing activities to secure China Unicom cellular subscribers, operating distribution channels, and develop a wide range of related value-added services.
SK telecom will play a role in applying its know-how in the above-mentioned business fields to the J/V company’s management operations.
SK Telecom invested 3 million US dollars in the J/V company to secure a 35% equity share. The investment was made through SK Telecom China, SK Telecom’s subsidiary company in China.
According to the contract, SK Telecom will participate in the J/V company’s management with director appointment recommendation rights as well as auditing rights.
Dong-Fang Telecom is equipped with cellular handset development capability, as well as a production line for switching systems and terminals.
It was the first Chinese company to produce cellular handsets. The major shareholder of Dong-Fang Telecom is China Putian, which is a holding company of the Putian Group (refer to footnote 1), the largest telecom group in China.
John Riu, president of SK Telecom China, said "This establishment of a J/V company in China has significant meaning for SK Telecom.
Through ’FaceOne’, SK Telecom will have an opportunity to explore new business relations with the Putian Group that could have a great influence on the Chinese telecom industry".
"SK Telecom will also be able to experience and accumulate cellular service marketing know-how in China, and further strengthen the cooperative tie with China Unicom", he added.
Footnote 1: Established in 1980, Putian Group specializes in manufacturing telecom systems and equipment. The group is comprised of one holding company called China Putian Corporation, and 54 subsidiary companies. Five of these subsidiary companies (Dong-Fang Telecom, Shanghai P&T, Chengdu Cable, China Putian Nanjing, and Ningbo Bird) are listed on the Chinese securities exchange market. The Group’s total sales in 2002 recorded 7.76 billion US dollars (about 9.2 trillion won). Putian Group ranks 10th among the companies in China in terms of sales.
Now SK Telecom is ready to leap into the Chinese cellular service market using the experience and know-how accumulated in the Korean market.
SK Telecom announced that the company and Dong-Fang Telecom’s joint investment contract signing ceremony, was held in Shanghai China, at 4 p.m. on the 5th of June.
Dong-Fang Telecom is a manufacturer of mobile communication system equipment and terminals. Participating in the ceremony were high-ranking officials from both companies.
This included Moon Soo Pyo, president of SK Telecom, and Sujixing, chairman of Dong-Fang Telecom.
’FaceOne’, the Joint Venture (J/V) company established by SK Telecom and Dong-Fang Telecom, will be responsible for carrying out cellular service marketing activities to secure China Unicom cellular subscribers, operating distribution channels, and develop a wide range of related value-added services.
SK telecom will play a role in applying its know-how in the above-mentioned business fields to the J/V company’s management operations.
SK Telecom invested 3 million US dollars in the J/V company to secure a 35% equity share. The investment was made through SK Telecom China, SK Telecom’s subsidiary company in China.
According to the contract, SK Telecom will participate in the J/V company’s management with director appointment recommendation rights as well as auditing rights.
Dong-Fang Telecom is equipped with cellular handset development capability, as well as a production line for switching systems and terminals.
It was the first Chinese company to produce cellular handsets. The major shareholder of Dong-Fang Telecom is China Putian, which is a holding company of the Putian Group (refer to footnote 1), the largest telecom group in China.
John Riu, president of SK Telecom China, said "This establishment of a J/V company in China has significant meaning for SK Telecom.
Through ’FaceOne’, SK Telecom will have an opportunity to explore new business relations with the Putian Group that could have a great influence on the Chinese telecom industry".
"SK Telecom will also be able to experience and accumulate cellular service marketing know-how in China, and further strengthen the cooperative tie with China Unicom", he added.
Footnote 1: Established in 1980, Putian Group specializes in manufacturing telecom systems and equipment. The group is comprised of one holding company called China Putian Corporation, and 54 subsidiary companies. Five of these subsidiary companies (Dong-Fang Telecom, Shanghai P&T, Chengdu Cable, China Putian Nanjing, and Ningbo Bird) are listed on the Chinese securities exchange market. The Group’s total sales in 2002 recorded 7.76 billion US dollars (about 9.2 trillion won). Putian Group ranks 10th among the companies in China in terms of sales.