Korean Telecommunications Company Launches CDMA Service in Vietnam

CDMA2000-1X, a technology developed in Korea, was exported for the first time on July 1 for commercialization in Vietnam. The technology allows users to exchange high-speed data along with voice messages with the help of wireless Internet services.

The Vietnam-based SLD Telecom, jointly established by SK Telecom, LG Electronics, and Dongah Elecomm, celebrated the launch on July 1 at Sheraton Hotel in Ho Chi Min City of the mobile telecommunications service with local partner SPT (Saigon Post & Telecommunication Service Corp.).

The newly launched `S-Fone,` is the first such CDMA (Code Division Multiple Access) technology in Vietnam and the first CDMA2000-1X service Korea has exported abroad. The service is now available in 13 major cities including Ho Chi Min City and Hanoi, and will connect the entire nation from 2005. Business will advance rapidly in the next 15 years and SLD Telecom will be responsible for providing equipment and technology while SPT will secure broadband rights. At the same time, the two will jointly put efforts into financing the project. The returns will be equally shared but SPT will take over the business after the contract period ends.

Vietnam has a population of 80 million, with its telecommunications service first having been introduced in 1993. Currently, two companies under the state-run VNPT are offering a mobile service based on the largely-European GSM standard. The number of mobile phone subscribers in the country is about 2 million with a penetration rate of 3% and has increased annually by 50%.

SLD Telecom plans to raise its market share to over 9.6% or 200,000 subscribers by the end of this year by offering a variety of services including coloring, bell sounds, and karaoke, services SK Telecom currently provides in Korea.

“We aim to advance into the entire Southeast Asian region by first exploiting Vietnam,” said SLD Telecom President Ha Sung-min. “We selected Vietnam as our first area to commercialize CDMA 2000-1X technology because the country has a lot in common with its neighboring countries and is the center of the Southeast Asian region,” he added.

Seong-Yub Ra cpu@donga.com