LG Telecom May Lose 3G License

South Korea's LG Telecom faces losing its 3G license after the operator said that it is planning the delay the rollout of the network. LG Telecom was awarded an operating license in the 2GHz band for CDMA2000 services in 2001, but has concentrated on upgrading its existing 1.8Ghz CDMA network.

"LG Telecom will continue to leverage the 1.8GHz bandwidth, and on that bandwidth, we'll invest in the CDMA2000 EVDO rA," said Nam Yong, president and CEO of LG Telecom.

"We've decided not to invest in the 2GHz bandwidth for the time being, considering the technological trends in the global wireless market," Nam told reporters on Tuesday marking the company's 10th anniversary.

However, Information-Communication Minister Rho Jun-hyong has suggested that the ministry could cancel LG Telecom's 3G license and possibly penalize the company.

"We are reviewing the related laws about LG Telecom's license, and we will make a decision as soon as possible," Rho said during a press briefing. "There are necessary administrative procedures to be followed. We are also considering what to do with the 220 billion won LG Telecom has paid for the license."

Posted to the site on 6th July 2006