Top 2 mobile carriers mull a joint deal

KTF Corp., the nation’s second-largest mobile service provider, yesterday proposed to SK Telecom Co. that they jointly create an IMT-2000, or third-generation, communications network. The new technology, with its wider bandwidth, promises high-speed video, data transmission and global hookups. Nam Joong-soo, the chief executive of KTF, said each mobile service provider would have to spend up to 2 trillion won ($1.6 billion) to build separate IMT-2000 communications facilities. “Joint construction of communications networks could save 2 trillion won, half the projected cost, and prevent overlapping investment,” Mr. Nam said, adding the two companies could also have their networks running earlier if they cooperated. SK Telecom and KTF, the nation’s two largest mobile carriers, each won in late 2000 a license for a network based on W-CDMA technology, the standard in most countries except the United States. “The two companies have not reached common ground on jointly building their communications facilities yet, but there are ongoing talks at a working level,” Mr. Nam said. SK Telecom said it was considering the proposal. Mr. Nam said the exact time third-generation mobile services would be available had not yet been determined. “But we remain firm that the services will be available at the end of this year at the latest, despite the fact many factors such as efficient investment, distribution of new handsets and securing users should be considered,” Mr. Nam said. Starting IMT-2000 services before 2004 was a precondition for awarding the licenses to SK Telecom and KTF. Separately, Mr. Nam said the government ban on subsidies for mobile handsets was desirable in the long run, but a total ban at this point was unfair. But he opposed an LG TeleCom proposal that the cap on subsidies be graded according to market share, where the smallest companies are allowed to offer the largest subsidies to attract new customers. by Yum Tae-jung