SK Telecom To Invest In Vietnam Wireless Joint Venture

SEOUL -(Dow Jones)- SK Telecom Co. said Wednesday it plans to invest up to $280 million in a wireless joint venture that offers mobile services in Vietnam.

SK Telecom, which owns a 55% stake in the venture called SLD Telecom, is planning to make an investment, via participation in a rights offering, to tap the growing market for mobile services in Vietnam, it said in a statement.

SLD Telecom is based in Singapore and was established in April 2000 with major shareholders including SK Telecom, LG Electronics Inc. and Dongah Elecomm. SLD Telecom's board will meet in December to determine the amount each shareholder will invest in the rights offering to be conducted by the venture, a spokeswoman at SK Telecom said.

By 2008, SK Telecom expects the venture to have 4 million wireless subscribers and revenue of $350 million.

SK Telecom has been providing wireless services based on the code division multiple access, or CDMA, technology under the "S-Fone" brand in Vietnam since July 2003. The venture currently has about 300,000 wireless customers.

SK Telecom, like other wireless operators in South Korea, is facing stalled growth at home in a saturated market where more than seven people out of 10 carry a cellphone. The company has been looking to the overseas markets for future growth. In January, it agreed with U.S. Internet services provider EarthLink Inc. to form a 50-50 joint venture to offer wireless voice and data services in the U.S.

The company's announcement comes after Chief Financial Officer Sung Min Ha said late last month that SK Telecom held talks with a telecommunications company in India for a potential investment but discussions ended due to differences over terms. Chief Executive Shin Bae Kim said earlier this year that SK Telecom would look at India and other Southeast Asian markets for expansion opportunities.

-By Yun-Hee Kim, Dow Jones Newswires; 822-732-2165; yun-hee.kim@dowjones.com

-Edited by Alan Soughley

(END) Dow Jones Newswires "

Posted to the site on 9th November 2005