LG Telecom Loses 3G License

The South Korean government has cancelled the 3G licence of LG Telecom because the company didn’t plan to use it, and is also seeking the resignation of CEO Nam Yong to hold him accountable. The license was to launch a 2 GHz 3G system based on CDMA technology, but LG claimed the business was not viable and had little technology support, and that it “wanted to focus on its own EV-DO technology as a more economically viable system for wireless broadband multimedia services”. So far LG has spent only $219 million developing the system, after buying the license for $1.19 billion in 2001.
“South Korean mobile operators have been reluctant to launch the 2 GHz CDMA communication business as global players have shifted to asynchronous-mode services.”

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