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Synchronous Business Company to Be Selected Soon

Posted July. 03, 2001 09:10,   


It is becoming more plausible that the Synchronous IMT-2000 Grand Consortium comprised of the LG Telecom, and the Hanaro Telecom, and the Powercomm will be selected as the third IMT-2000 company at the beginning of August.

Yang Seung-Taik, the Minister of Information and Communication, hinted at the impending selection of the synchronous business company which has been prolonged over six months, saying in the press meeting yesterday that ``I expect the selection of the synchronous business company to be completed within a month``.

Minister Yang also notified that the coalition between the LG Telecom and the Hanaro Telecom has shown the marked progress, saying that ``as far as I know, the discussion between the LG Telecom and the Hanaro Telecom has proceeded smoothly``.

Regarding the LG`s plan of the prior merge, ``if it can contribute for the restructuring of the communication market and the communication companies agree to this plan, I may permit it,`` he added. Two companies had held a different view from each other on the LG`s plan but has narrowed the gap. Therefore, it is highly possible that the business right of the synchronous IMT-2000 is finally given to the LG Telecom through the grand consortium.

The communication business circles prospected that the formation of the consortium should be completed within this week or during next week for the business company to be selected within a month. Considering such a schedule, the Ministry of Information and Communication (MIC) will officially announce the selection of the synchronous business company in the near future.

Minister Yang declared that he has an intention to support in a roundabout way, saying that ``if the ministry lowers the initial investment to the level of the PCS companies and permits the long-term repayment of the remainders with the total amount of 1 trillion 150 billion won, the burdens of the company will be greatly lessened. The MIC has actively reviewed the plan to charge the initial allotment of 220 billion won and to permit the repayment in a long-term lump installments of 15 years.

Yang told that ``if the customers of the LG Telecom (4.4 million), the Hanaro Telecom (2 million), and the Thrunet (1.2 million) are put together, the customers over 7 million will be secured. I hope that the Powercomm, the Hanaro Telecom and the LG Telecom will be combined in a mutually supplementary way``.

Meanwhile, the communication business sector pointed out that ``the permit to the prior merge of the consortium can generate the dispute over the preferential treatment toward the LG Telecom. Especially, it will raise the equity issue to make differences on the selection method and the amount of the initial payment between the non-synchronous companies and the synchronous companies.``