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Press Release
SK Telecom gears up for commercial IMT-2000 service development
1999.10.06SK Telecom gears up for commercial IMT-2000 service development
To develop snchronous and asynchronous systems simultaneously targeting international market
To make 123.3 won R&D Investment in joint development with equipment manufacturer
Aims to take the lead in the global IMT-2000 service market and protect the local equipment industry
(October 6, 1999)
As the competition to develop the third-generation mobile technology IMT-2000 is heating up the world over, SK Telecom, the world?s first commercial CDMA cellular service provider, announced its plan for R&D investment worth ?123.3 billion to develop a commercial IMT-2000 system jointly with local equipment manufacturers. The announcement of the ambitious new plan signals the beginning of the efforts by the Korean telecom industry to develop the system in earnest.
SK Telecom held the IMT-2000 technology development seminar at its namdaemun headquarters Oct. 6 and announced its plan to complete the development of the 2Mbps commercial integrated asynchronous IMT-2000 system by February 2002 to the audience of 100-plus representatives of the equipment manufacturers.
In addition, the company will continue to work on the so-called ?generation 2.5? synchronous IS-95C system to bridge the gap between the current 2nd generation mobile phones and the third generation technology IMT-2000.
o To form alliances with the equipment makers to take the leadership in the global market
SK Telecom expects to carry its phenomenal success in CDMA cellular service into IMT-2000 service and aims to occupy advantageous positions before expanding its operations into the global market by creating a local equipment production base for IMT-2000 based on close collaboration with the local equipment makers and thus enhancing the competitiveness of the Korean telecom equipment industry.
In particular, the company will make more R&D contracts with small or mid-sized companies that are having difficulties in securing stable R&D funding and finding buyers, with a view to promoting small businesses.
SK Telecom has experience of running the organization called ?Mobile Telecom Technology Development & Management Division? that has played a critical role in popularizing commercial CDMA services. The company intends to make use of the experience as well as its network operations know-how, the production capacity of such equipment as switching facilities for large corporations, and the ability to secure new technologies the small businesses lack, in the development of the new system.
SK Telecom will concentrate corporate resources on developing a system of high commercial feasibility and efficiency while minimizing the trial and errors in the course of the system development through establishing close cooperative relationship between the equipment manufacturers and service providers.
To this end, the company will mobilize its 120-plus research staff and make the technologies it holds rights to 100% accessible to the equipment manufacturers in order to create a ?win-win? situation.
In addition, SK Telecom will foster promising small startups through the IMT-2000 project. With a view to achieving this objective, it will,
Lay a firm technical foundation by combining the manufacturing techniques of the big enterprises and the core technologies of the small businesses funded by venture capital;
Secure the IPR for the core technologies and incorporate them into the commercial products;
And continuously use these technologies in improving the capabilities of the commercial system and developing new features.
Furthermore, it will create the synergy effect by maintaining a close link with the commercial system development projects of the equipment manufacturers and develop commercial applications for the core technologies it certifies by incorporating them into the commercial system.
Of the equipment to be developed, switches, base stations, base station control systems, terminals and visitor location registers will be developed in conjunction with the other large corporations while the small startup companies will be the main partners for the development of wireless network engineering tools, base station technology, and controller technology.
o Integrated asynchronous system for the international buyers
The integrated asynchronous IMT-2000 system is a complementary model for the synchronous switch network and the asynchronous wireless network and thus it is possible to use the existing technologies and facilities reducing the development costs.
In particular, since it is predicted that approximately 80% of the world market will elect the asynchronous system, having the capacity to produce the asynchronous system will put the company at an advantageous position to serve the international market.
o The current status of IMT-2000 in korea
In Korea, leading telecom giants such as Korea Telecom, SK Telecom and the LG Group are moving quickly to come up with the commercial IMT-2000 system and already beginning to unveil the trial versions.
SK Telecom developed the modem ASIC chip, core component of the asynchronous system, in 1996 and built the 128Kbps test bed to transmit video contents in 1997, which was the first in Korea and the third in the world. And in 1998, the test bed was successfully upgraded to 384Kbps in the transmission speed.
In addition, SK Telecom has been very active in its effort to secure core technologies by establishing alliances with Nokia of Finland and NTT of Japan.
Korea Telecom developed a synchronous system in conjunction with KT Freetel and is known to be in the process of developing an IMT-2000 system and ICO multi-purpose terminals by combining IMT-2000 and the mid-orbit satellite ICO.
The LG Group tested its synchronous IMT-2000 system last May and achieved the maximum transmission speed of 384Kbps.
Meanwhile, Samsung, Dacom, Shinsegi Telecom and Hansol PCS created company-wide taskforces and engage in negotiations to put up a consortium.
Despite these earnest efforts by many companies, critics say that because of the conflicting interests of the involved parties, the difficulties of maintaining effective control over a technology consortium, lack of technical know-how and funding, the companies are primarily focusing on developing low-level test models instead of the commercial system that requires a higher level of technical expertise.
In addition, they are mostly focusing on developing the synchronous system rather than on the asynchronous one that has a far larger potential market as more than 80% of the potential buying countries are expected to go with the asynchronous system.
Under these circumstances, many people voice concern that despite Korea?s achievement of early commercialization of CDMA technology, the country may be dropped into the group of technology followers if it continues to lag behind in developing the IMT-2000 system.
The countries leading the development of the IMT-2000 system such as the U.S., the European countries and Japan are already heavily investing and adopted well-defined directions for the development plans (cdma2000 for the U.S. and W-CDMA for Europe). In these countries, the service providers, the end-users of the equipment, are taking the initiative for the system development. And as a result, they are the ones that have the cutting-edge IMT-2000 technologies,
Meanwhile, Korea?s telecom industry has made a sizable contribution to the country?s overcoming the economic crisis as it has millions of dollars worth of the import substitution effect and is worth an equally big amount in export while creating new jobs and stimulating the development of related industries based on its technological prowess derived from the commercial CDMA system. However, the industry is now facing a difficult test of surviving the competition among the world technology leaders to develop a superior IMT-2000 system.
Against this backdrop, SK Telecom said that it drew this ambitious plan with a sense of mission that it is responsible to contribute to securing an advantageous position in the world market and Korea?s becoming the leading country in IMT-2000 services as well as equipment manufacturing by securing competitive technologies in IMT-2000 as it was the first to commercialize the CDMA cellular service and a service provider with the world-class telecom technologies that helped bring Korea into a leading position in the telecom industry by providing a large number of Koreans with advanced telecom services.
To develop snchronous and asynchronous systems simultaneously targeting international market
To make 123.3 won R&D Investment in joint development with equipment manufacturer
Aims to take the lead in the global IMT-2000 service market and protect the local equipment industry
(October 6, 1999)
As the competition to develop the third-generation mobile technology IMT-2000 is heating up the world over, SK Telecom, the world?s first commercial CDMA cellular service provider, announced its plan for R&D investment worth ?123.3 billion to develop a commercial IMT-2000 system jointly with local equipment manufacturers. The announcement of the ambitious new plan signals the beginning of the efforts by the Korean telecom industry to develop the system in earnest.
SK Telecom held the IMT-2000 technology development seminar at its namdaemun headquarters Oct. 6 and announced its plan to complete the development of the 2Mbps commercial integrated asynchronous IMT-2000 system by February 2002 to the audience of 100-plus representatives of the equipment manufacturers.
In addition, the company will continue to work on the so-called ?generation 2.5? synchronous IS-95C system to bridge the gap between the current 2nd generation mobile phones and the third generation technology IMT-2000.
o To form alliances with the equipment makers to take the leadership in the global market
SK Telecom expects to carry its phenomenal success in CDMA cellular service into IMT-2000 service and aims to occupy advantageous positions before expanding its operations into the global market by creating a local equipment production base for IMT-2000 based on close collaboration with the local equipment makers and thus enhancing the competitiveness of the Korean telecom equipment industry.
In particular, the company will make more R&D contracts with small or mid-sized companies that are having difficulties in securing stable R&D funding and finding buyers, with a view to promoting small businesses.
SK Telecom has experience of running the organization called ?Mobile Telecom Technology Development & Management Division? that has played a critical role in popularizing commercial CDMA services. The company intends to make use of the experience as well as its network operations know-how, the production capacity of such equipment as switching facilities for large corporations, and the ability to secure new technologies the small businesses lack, in the development of the new system.
SK Telecom will concentrate corporate resources on developing a system of high commercial feasibility and efficiency while minimizing the trial and errors in the course of the system development through establishing close cooperative relationship between the equipment manufacturers and service providers.
To this end, the company will mobilize its 120-plus research staff and make the technologies it holds rights to 100% accessible to the equipment manufacturers in order to create a ?win-win? situation.
In addition, SK Telecom will foster promising small startups through the IMT-2000 project. With a view to achieving this objective, it will,
Lay a firm technical foundation by combining the manufacturing techniques of the big enterprises and the core technologies of the small businesses funded by venture capital;
Secure the IPR for the core technologies and incorporate them into the commercial products;
And continuously use these technologies in improving the capabilities of the commercial system and developing new features.
Furthermore, it will create the synergy effect by maintaining a close link with the commercial system development projects of the equipment manufacturers and develop commercial applications for the core technologies it certifies by incorporating them into the commercial system.
Of the equipment to be developed, switches, base stations, base station control systems, terminals and visitor location registers will be developed in conjunction with the other large corporations while the small startup companies will be the main partners for the development of wireless network engineering tools, base station technology, and controller technology.
o Integrated asynchronous system for the international buyers
The integrated asynchronous IMT-2000 system is a complementary model for the synchronous switch network and the asynchronous wireless network and thus it is possible to use the existing technologies and facilities reducing the development costs.
In particular, since it is predicted that approximately 80% of the world market will elect the asynchronous system, having the capacity to produce the asynchronous system will put the company at an advantageous position to serve the international market.
o The current status of IMT-2000 in korea
In Korea, leading telecom giants such as Korea Telecom, SK Telecom and the LG Group are moving quickly to come up with the commercial IMT-2000 system and already beginning to unveil the trial versions.
SK Telecom developed the modem ASIC chip, core component of the asynchronous system, in 1996 and built the 128Kbps test bed to transmit video contents in 1997, which was the first in Korea and the third in the world. And in 1998, the test bed was successfully upgraded to 384Kbps in the transmission speed.
In addition, SK Telecom has been very active in its effort to secure core technologies by establishing alliances with Nokia of Finland and NTT of Japan.
Korea Telecom developed a synchronous system in conjunction with KT Freetel and is known to be in the process of developing an IMT-2000 system and ICO multi-purpose terminals by combining IMT-2000 and the mid-orbit satellite ICO.
The LG Group tested its synchronous IMT-2000 system last May and achieved the maximum transmission speed of 384Kbps.
Meanwhile, Samsung, Dacom, Shinsegi Telecom and Hansol PCS created company-wide taskforces and engage in negotiations to put up a consortium.
Despite these earnest efforts by many companies, critics say that because of the conflicting interests of the involved parties, the difficulties of maintaining effective control over a technology consortium, lack of technical know-how and funding, the companies are primarily focusing on developing low-level test models instead of the commercial system that requires a higher level of technical expertise.
In addition, they are mostly focusing on developing the synchronous system rather than on the asynchronous one that has a far larger potential market as more than 80% of the potential buying countries are expected to go with the asynchronous system.
Under these circumstances, many people voice concern that despite Korea?s achievement of early commercialization of CDMA technology, the country may be dropped into the group of technology followers if it continues to lag behind in developing the IMT-2000 system.
The countries leading the development of the IMT-2000 system such as the U.S., the European countries and Japan are already heavily investing and adopted well-defined directions for the development plans (cdma2000 for the U.S. and W-CDMA for Europe). In these countries, the service providers, the end-users of the equipment, are taking the initiative for the system development. And as a result, they are the ones that have the cutting-edge IMT-2000 technologies,
Meanwhile, Korea?s telecom industry has made a sizable contribution to the country?s overcoming the economic crisis as it has millions of dollars worth of the import substitution effect and is worth an equally big amount in export while creating new jobs and stimulating the development of related industries based on its technological prowess derived from the commercial CDMA system. However, the industry is now facing a difficult test of surviving the competition among the world technology leaders to develop a superior IMT-2000 system.
Against this backdrop, SK Telecom said that it drew this ambitious plan with a sense of mission that it is responsible to contribute to securing an advantageous position in the world market and Korea?s becoming the leading country in IMT-2000 services as well as equipment manufacturing by securing competitive technologies in IMT-2000 as it was the first to commercialize the CDMA cellular service and a service provider with the world-class telecom technologies that helped bring Korea into a leading position in the telecom industry by providing a large number of Koreans with advanced telecom services.