Ericsson mulling investment in S. Korea: official

By Lee Joon-seung
SEOUL, July 2 (Yonhap) -- Telecom equipment giant Ericsson is reviewing a plan to
invest in South Korea's telecommunication's equipment sector, a government
official said Thursday.
"There has been an exchange of views on this issue with hopes of progress being
made," the official at the Ministry of Knowledge Economy, declining to be
identified.
Investment by Ericsson could open new horizons for the development of
next-generation wireless broadband Internet.
The Swedish company is a global provider in the telecommunication equipment
sector and there is potential for technical cooperation with local companies, the
official said.
Although the long term evolution (LTE) system that Ericsson is leading is
different from the Wireless Broadband (WiBro) technology developed in South
Korea, cooperation can take place, he said.
Both systems are front-runners that aim to offer so-called fourth generation
wireless broadband technology to consumers.
LTE is expected to start commercial services next year, mainly in Europe, while,
WiBro has been in use since mid 2006 in some South Korean metropolitan areas.
WiBro is known abroad as WiMAX or Worldwide Interoperability for Microwave
Access.
WiBro can download a considerable amount of data even if the user is moving at
speeds up to 120 km per hour, compared to "a walking speed" for wireless local
area network systems.
Citing a senior government official, a local newspaper reported Ericsson could
announce a investment plan that may reach up to several trillion won as early as
this month.
It claimed that the investment will be focused on research and development and be
directed to expand tie-ups with local manufacturers of mobile telecommunications
equipment.
The paper said WiBro and LTE share roughly 80 percent commonality in terms of
technology used, with the Swedish company aiming to use South Korea as a possible
testbed for it own broadband system.
yonngong@yna.co.kr
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