DoCoMo In Talks With KT Freetel On Business Tie-Up
TOKYO -(Dow Jones)- NTT DoCoMo Inc. said Wednesday that it's in talks with KT Freetel Ltd. on a possible business tie-up in mobile phone services.
The Japanese and South Korean mobile phone service providers are currently discussing details of their potential alliance and will disclose them once they are finalized, a NTT DoCoMo spokesman said.
The Nihon Keizai Shimbun reported in its Wednesday morning edition that NTT DoCoMo, Japan's biggest mobile phone service operator, will likely reach an agreement this year on a $500 million to $600 million deal to acquire a roughly 10% interest in South Korea's second-largest cellular phone service provider by purchasing a portion of the 48.7% stake held by KT Corp.
It's still uncertain, however, whether the Japanese firm will take a stake in the South Korean firm, the NTT DoCoMo spokesman said.
NTT DoCoMo intends to provide KT Freetel, or KTF, with technologies and know-how necessary for rolling out WCDMA-based third-generation cell phone service, the Nikkei reports. The two firms are also considering offering roaming service allowing customers to use phone and text messaging in both Japan and South Korea.
The possible tie-up would mark an increasing offensive by DoCoMo in growing Asian markets. The company said Monday it will invest $6 million in the holding company of Chinese mobile payment service provider Just In Mobile Information Technology Shanghai.
The Japanese mobile phone service operator had slowed its overseas investments in the past few years following failed investments in U.S. and European telecom firms.
KTF also confirmed its talks with NTT DoCoMo. In a disclosure to the Financial Supervisory Service Wednesday, KTF said that it was in talks with the Japanese firm to form a strategic alliance. But the company didn't provide further details in its disclosure.
KT Corp's Chief Financial Officer Haing-Min Kwon Tuesday told Dow Jones Newswires that the company currently has no plans to sell its KTF shares to NTT DoCoMo.
-By Yoshio Takahashi and Yun-Hee Kim, Dow Jones Newswires; 813-5255-2929; yoshio.takahashi@dowjones.com; yun-hee.kimdowjones.com
-Edited by Shawn Schroter and Tomoko Hosaka
(END) Dow Jones Newswires "
Posted to the site on 14th December 2005
