CDMA Ban in North Korea Could Boost GSM Opportunities

The Financial Times has reported that the USA government is putting pressure on South Korea to block plans for South Korean networks to build a cell phone network in the North's capital of Pyongyang. The companies involved in the project include Korea Telecom, SK Telecom, Samsung Electronics and LG Electronics.

"We tried to tell [Seoul] that it was not a good idea," the FT reported a US diplomat. as saying. "We don't want to keep North Korea in the stone age but do we really want their soldiers equipped with high-tech cell phones?"

As the South Koreans are promoting the CDMA system that is used in the South, the US government could, in theory, block the building of the network, as Qualcomm owns the CDMA patents and would require a US government permit to export its technology to North Korea.

Any move by the US government to block plans to build a CDMA network in the North could lead to the country adopting GSM technology for the capital. Loxley Pacific, which is a joint venture between Loxley, Teltech of Finland and Charungthai of Taiwan is currently building a GSM network in the Rason Economic Zone which was due to go live in July. We were notified by Loxley Pacific in April that the company then plans a nationwide expansion program, so they could built a GSM system in Pyongyang if the CDMA network is cancelled.'"

Posted to the site on 5th August 2002