Samsung Electronics-Qualcomm to participate in MC-type consortium

Samsung Electronics and Qualcomm decided to participate in the International Mobile Telecommunication (IMT) 2000 multi-carrier (MC)-type consortium through the purchase of a certain portion of equity. An official at Hanaro Telecom said Wednesday, Samsung Electronics and Qualcomm Korea have decided to make an equity investment in the MC-type grand consortium."

Samsung Electronics and Qualcomm reportedly attended the first-round meeting to create the committee to propel the code division multiple access (CDMA) 2000 grand consortium, Wednesday and expressed their intention to purchase equity participation.

Participants at the meeting decided to set aside 10% of total equity for Hanaro Telecom, 20% for large, leading companies, including Samsung, 30% for small- and medium-size venture companies (including Promising Information and Communication Companies Association (PICCA)), 10% for so-called ¡°National Stocks,¡± stocks to be distributed to the general public, and the remaining 30% for overseas investors, including Qualcomm. They also set a deadline that requires participating companies to express their intentions on the equity question by Feb. 20.

As for any shortage of equity shares, they decided to distribute contentious shares to those willing to invest greater amounts. In the worst case, however, they have agreed that major shareholders will be on equal footing. Among the participants at the meeting were the six central enterprises and associations - Venture Companies Association, PICCA, Hanaro Telecom, Korean Women Entrepreneurs Association, Korea Women Venture Association, Qualcomm Korea and the two equipment companies - Samsung Electronics and Hyundai Electronics Industries.