CDG Press Releases
CDG COMMENDS SK TELECOM ON BILLION-DOLLAR INVESTMENT IN CHINA UNICOM
CDMA2000 is Thriving in Korea and Expected to Earn a Return on Investment in China
Costa Mesa, Calif. — July 19, 2006 — The CDMA Development Group (CDG) (www.cdg.org) commended SK Telecom (SKT) on its $1 billion investment in China Unicom. SKT is South Korea’s largest wireless operator, and the investment demonstrates that CDMA2000® is a thriving technology in Korea and is expected to provide a return on investment in China.
SKT has purchased a 6.67% stake in China Unicom with approximately $1 billion in convertible bonds. The alliance with SK Telecom will fortify China Unicom’s CDMA2000 business by providing additional working capital for advanced mobile handsets, network enhancements, and value-added services. China Unicom is China’s second largest mobile operator, and claims 34% of the country’s 415 million-strong subscriber base.
"SKT’s investment in China Unicom marks SKT’s tremendous success and confidence in rolling out advanced CDMA2000 voice, broadband data and multimedia services in markets outside of Korea," said Perry LaForge, executive director of the CDG. "It also highlights CDMA2000’s proliferation across the world’s most lucrative long-term potential markets.” The powerful combination of Korea’s ‘know-how’ and China’s enormous market potential will further contribute to the rapid migration from 2G to 3G mobile communications.
SKT can be considered one of the most successful operators in the world, through its substantial earnings in Korea coming from around 20 million subscribers who are generating an average revenue per user (ARPU) of $45.70 USD. Its execution in Korea, one of the most competitive markets, demonstrates the power of its leadership, market execution and technology selection. It’s entry in the Chinese telecommunication market, through an exclusive strategic alliance framework agreement with China Unicom, further shows SKT’s commitment towards significantly strengthening the presence of CDMA2000 in China and maximizing its earnings within the global marketplace.
According to Shin-bae Kim, the CEO of SK Telecom, "The combination of the world's largest market and the world's finest technology will set the standard for mobile communications worldwide. Our partnership with China Unicom marks a turning point for China’s CDMA business."
More information on CDMA2000 operators is available at www.cdg.org.
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