Gov`t unveils new guidelines for IMT-2000 biz

Local firms will be allowed to take part in both the multi-carrier (MC)-type and direct spreading (DS)-type IMT-2000 (International Mobile Telecommunication) services, called the third-generation portable communications method. Accordingly, many domestic and foreign companies, including Pohang Iron and Steel Co. (POSCO), are posed to join forces for the creation of an MC-type grand consortium.

The Ministry of Information and Communication unveiled guidelines Monday for the selection of MC-type service providers, under which companies participating in the DS-type consortium also would be able to participate in the MC-type group. MC-type service providers are eligible for special treatment with respect to frequency band and discriminating numbers.

To help MC-type service providers reduce their investment expenses, the government decided to allow new businesses to use the existing second-generation Code Division Multiple Access (CDMA) network base station.

In addition to its aim to promote the balanced development of both industries, the government mapped out the measure in recognition of the widely held belief that the MC-type business is less competitive. The belief arose because SK Telecom and Korea Telecom selected the European DS-type formula.