LG Telecom`s 3G business becomes murky

LG Telecom Ltd., Korea`s smallest mobile-phone operator, could face further setbacks in its deployment of third-generation services with uncertainties surrounding the base technology.

U.S. chipmaker Qualcomm Inc., the developer of code-division multiple access (CDMA) technology, disclosed Tuesday that it has abandoned efforts to develop chip sets to electronics manufacturers for CDMA2000 1xEV-DV (evolution for data and voice) mobile Internet handsets.

LG Telecom has been the world`s lone wireless carrier using the technology for the third-generation services. With Qualcomm virtually killing its development project, LG Telecom will likely be forced to abandon its third-generation deployment plan and seek a license for more widely used third-generation standards.

"Qualcomm has abandoned the development of EV-DV chipsets on its roadmap because the market for the technology didn`t exist. The company`s focus is to upgrade its EV-DO offerings," said Kim Seung-soo, director of public relations at Qualcomm Korea Ltd.

LG Telecom was granted a license for third-generation EV-DV services, which offer data uploads at speeds of 3.1 mbps, in 2002 and started trial operations late last year in Seoul. The company was also working with U.S. chipmakers STMicroelectronics and Texas Incorporated to develop EV-DV service solutions. However, the joint project was aborted last month.

Industry watchers have said that LG Telecom`s slow deployment of third-generation mobile telephony services is hurting the company`s competitiveness. In contrast, SK Telecom, the country`s largest mobile-phone carrier, has more than 6.4 million customers for its third-generation EV-DO services. KT Freetel Co., the No. 2 mobile-phone carrier, has more than 3 million EV-DO customers.

According to an official at LG Telecom`s handset business division, the company is considering a request to the Ministry of Information and Communication to allow a change to its third-generation standard.

Should LG Telecom fail to commercially launch a third-generation service within the 2.3Ghz band by 2006, the company will be forced to give up its third-generation license, according to Communication Ministry officials.

(thkim@heraldm.com)



By Kim Tong-hyung