Seoul, Dec. 15: LG and Samsung, the two South Korean telecom, information technology and white goods manufacturing giants, are all set to flood the Indian market with their handsets based on code division multiple access technology (CDMA).
The two chaebols have already bagged major contracts for the supply of CDMA-based mobile phones to Reliance and BSNL.
While Samsung executives were tight-lipped about the total supply of handsets and network equipment to Reliance, company executives in LG said their company has bagged an order worth $ 1 billion to supply 6.2 lakh mobile handsets.
“We had already received an order to supply 3.5 lakh wireless in local loop (WiLL) lines in urban areas and recently bagged an order to supply 2.7 lakh CDMA WILL lines. We are also considering setting up a production unit in India to improve price competitiveness,” Hyoung-Kun Lee, LG Electronics Inc’s assistant manager, external alliance group, said.
LG will offer Reliance three kinds of CDMA20001X handset models—bar type, four gray colour dual folder type and colour dual folder type.
Samsung was, however, more concerned about the use of its handsets for only limited mobility purposes by Reliance and basic service operators.
“The Cellular Operators Association of India had strongly lobbied with the government against limited mobility, that delayed the launch of the service by many operators. Now when we have handsets that can be used for higher performance (which translates into higher price), we would like to wait to expand our presence till unlimited mobility is allowed,” said Simon Lee, business development manager, wireless system marketing group, telecommunications systems division, at the telecommunications network.
Samsung executives were also tight-lipped about the contract it claimed to be negotiating with Reliance for setting up the network. “We are in discussions with Reliance Infocom. We are one of the two manufacturers (the other being Lucent Technologies) selected by Reliance to set up their infrastructure. But we are waiting for a final order from them,” Lee added.
According to the South Korean information and communications ministry, telecom equipment manufacturers are expected to export about $ 123 million worth of equipment to India.
In addition, the telecom service provider Korea Telecom Freetel recently completed the $ 10-million project of Reliance Infocom.
