Korea penetrates China`s CDMA market

Samsung Electronics has been selected to participate in China`s mobile communications service based on code division multiple access (CDMA), according to industry sources.

Informed sources in Beijing said that China Unicom, Chinese CDMA-based mobile communications carrier, has completed screening of 12 companies as mobile communications system providers. They noted that Samsung Electronics, Lucent Technology, Motorola and a Chinese firm had been selected as systems suppliers.

China Unicom has reported the screening result to the relevant authorities, and the Chinese government is expected to officially announce the result April 26 at the earliest. It was learned that a formal contract will be concluded before the end of this month.

China is expected to launch mobile communications service in 31 provinces and cities around the country, which is estimated at about 13 million circuits. Under the plan, it has offered an international bidding in early March for base station and switching systems.

Samsung Electronics has been designated as a supplier by forming a joint venture with China`s Shanghai Bell. It will install systems in four places, including Shanghai, Tianjin and Hebei Province. It wasn`t confirmed whether LG Electronics, which formed a partnership with a Chinese firm, had been selected as one of the suppliers.

Each year, 15 million Chinese consumers subscribe to mobile communications service. The Chinese government is planning to increase the service by 10 million lines annually over the next five years, so the CDMA project has been called as a project that will lay golden eggs.

In 1998, President Kim Dae-Jung called for Korean firms` participation in the Chinese project when he met with his Chinese counterpart Jiang Zemin. Also, Kim sent a special envoy to Beijing to express Korea`s keen interest in the project.

Lee Jong-Hwan ljhzip@donga.com