SK signs deal to work with China on 3G

01 Sep 2006

South Korea's top mobile carrier SK Telecom has agreed with the Chinese government to cooperate in developing 3G technologies, an AFP report said.

The AFP report said according to SK Telecom, the deal with China 's National Development and Reform Commission (NDRC) would help the SK 'strengthen its foothold in China's fast-growing wireless telephone market.'

SK Telecom said it would establish a joint research center in China to develop a 3G mobile telecom standard, promoted by China called TD-SCDMA, according to the AFP report.

China hopes to launch the TD-SCDMA service before the 2008 Olympics in Beijing and SK Telecom plans to build an experimental TD-SCDMA station in South Korea next year, the AFP report said.

Both sides agreed to build a cooperative model of joint development 'for not only TD-SCDMA technology but also beyond 3G technology and 4G, and to make use of the resulting diverse achievements,' SK Telecom said.

The AFP report said after signing the deal here with a Chinese delegation led by NDRC chief Ma Kai, SK Telecom CEO Kim Shin-Bae said it 'signifies the full recognition of SK Telecom's technological prowess.'

SK Telecom has expanded its business in China as it seeks a way to meet strong domestic competition, the report said.

In February, it was allowed to launch a $6 million Internet service joint venture with China Unicom and then in June upgraded this into a strategic alliance, the AFP report further said.

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