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Press Release
SK Telecom Signs Comprehensive Agreement with China Unicom
2000.02.17Bridgehead established into the China market.
SK Telecom and China United Telecommunications, the second largest information and communications provider in China, have announced the conclusion of a comprehensive agreement to cooperate in technology and operational management for mutual benefit. SK Telecom President Cho Jung-nam, China United Telecommunications Executive Vice President Wang Jian-zhou and other high ranking officials from both companies met in Beijing to clinch the deal on February 17.
This agreement is not limited to CDMA technology for cellular phone systems. Rather, the two companies will jointly develop and apply third-generation mobile communications (IMT-2000) technology and advance into overseas markets together so that they emerge as mobile communications in the Asia-Pacific.
SK Telecom and China Unicom have agreed to a strategic partnership that covers the entire range of information and communications areas. These include CDMA network design and radio frequency plans, network maintenance and repair, marketing know-how, information technology consulting and joint technology development.
This partnership is very important as it lays the groundwork for penetrating the Chinese market, which is seen to have greater growth potential than anywhere else on the globe. An estimated 150 million Chinese are expected to be subscribing to telecommunications services by 2005.
According to SK Telecom Vice President Choi Hyo-jin, in charge of Overseas Business Division, "The Chinese information and communications market is visibly opening up with China’s entry into the WTO. The comprehensive agreement for cooperation between SK Telecom and China Unicom at this time should open a floodgate of opportunities between Korea and China in the future."
The cooperative arrangement will be carried out through regular meetings of top management as well as regular meetings of working groups for each field of endeavor. The two partners will also exchange information periodically, and China Unicom will send administrative and technical personnel to SK Telecom’s Head Office for hands-on experience and training. SK Telecom engineers will also give lectures for each stage in the development of China Unicom’s network.
Background of Cooperative Arrangement
Similarity of Business Domains
- Both companies are CDMA mobile communications operators in their respective countries. The need for partnering is increasing in all aspects of mobile communications : basic technology development and network operating technology, new service launches, marketing, and general administration.
Joint responses are needed for the changing technical environment.
- Changes in mobile communications technology are accelerating and the amounts of required investment are becoming massive.
- There is a need for joint development of next-generation mobile communications technology and for joint response to the establishment of global standards.
Joint responses are needed to the increasing trend for international alliances.
- There will be a joint effort to be the mobile communications technology leader in the Asia-Pacific and then to seek joint opportunities to advance into offshore markets.
- There is a need for cooperation as roaming and other services become internationalized.
Scope of Cooperation
R&D
- Research and develop next-generation mobile comunications technology and services, and promote their standardization.
- Research and develop value-added communications technology and promote its standardization.
- Research and develop other areas of mutual interest.
International Roaming
- Jointly study automatic roaming between Korea and China (establish a Roaming Center).
- Pursue cooperation on international roaming with other countries.
Construction
- Exchange technology related to designing CDMA mobile communications networks, establishing radio frequency plans, and building or expanding networks.
Marketing
- Exchange knowledge and experience related to marketing and sales administration.
- Build and operate COIS.
- Build and operate billing centers.
- Exchange experience in distribution of CDMA handsets.
CDMA Network Maintenance & Repair
- Exchange technology and experience related to network administration, to include network optimization, as well as maintenance & repair methods and tools.
Information Technology
- Cooperate on IT technology development and consulting.
Other areas of mutual interest
China United Telecommunications :
China unicom is the nation’s second largest state-run telecommunications service provider. Business interests include CDMA network operation, wireline systems, GSM cellular phones, pagers, Internet telephone, and Internet services.
This agreement is not limited to CDMA technology for cellular phone systems. Rather, the two companies will jointly develop and apply third-generation mobile communications (IMT-2000) technology and advance into overseas markets together so that they emerge as mobile communications in the Asia-Pacific.
SK Telecom and China Unicom have agreed to a strategic partnership that covers the entire range of information and communications areas. These include CDMA network design and radio frequency plans, network maintenance and repair, marketing know-how, information technology consulting and joint technology development.
This partnership is very important as it lays the groundwork for penetrating the Chinese market, which is seen to have greater growth potential than anywhere else on the globe. An estimated 150 million Chinese are expected to be subscribing to telecommunications services by 2005.
According to SK Telecom Vice President Choi Hyo-jin, in charge of Overseas Business Division, "The Chinese information and communications market is visibly opening up with China’s entry into the WTO. The comprehensive agreement for cooperation between SK Telecom and China Unicom at this time should open a floodgate of opportunities between Korea and China in the future."
The cooperative arrangement will be carried out through regular meetings of top management as well as regular meetings of working groups for each field of endeavor. The two partners will also exchange information periodically, and China Unicom will send administrative and technical personnel to SK Telecom’s Head Office for hands-on experience and training. SK Telecom engineers will also give lectures for each stage in the development of China Unicom’s network.
Background of Cooperative Arrangement
Similarity of Business Domains
- Both companies are CDMA mobile communications operators in their respective countries. The need for partnering is increasing in all aspects of mobile communications : basic technology development and network operating technology, new service launches, marketing, and general administration.
Joint responses are needed for the changing technical environment.
- Changes in mobile communications technology are accelerating and the amounts of required investment are becoming massive.
- There is a need for joint development of next-generation mobile communications technology and for joint response to the establishment of global standards.
Joint responses are needed to the increasing trend for international alliances.
- There will be a joint effort to be the mobile communications technology leader in the Asia-Pacific and then to seek joint opportunities to advance into offshore markets.
- There is a need for cooperation as roaming and other services become internationalized.
Scope of Cooperation
R&D
- Research and develop next-generation mobile comunications technology and services, and promote their standardization.
- Research and develop value-added communications technology and promote its standardization.
- Research and develop other areas of mutual interest.
International Roaming
- Jointly study automatic roaming between Korea and China (establish a Roaming Center).
- Pursue cooperation on international roaming with other countries.
Construction
- Exchange technology related to designing CDMA mobile communications networks, establishing radio frequency plans, and building or expanding networks.
Marketing
- Exchange knowledge and experience related to marketing and sales administration.
- Build and operate COIS.
- Build and operate billing centers.
- Exchange experience in distribution of CDMA handsets.
CDMA Network Maintenance & Repair
- Exchange technology and experience related to network administration, to include network optimization, as well as maintenance & repair methods and tools.
Information Technology
- Cooperate on IT technology development and consulting.
Other areas of mutual interest
China United Telecommunications :
China unicom is the nation’s second largest state-run telecommunications service provider. Business interests include CDMA network operation, wireline systems, GSM cellular phones, pagers, Internet telephone, and Internet services.