IR News

[Details of Contract and Commercial Service]
LGE signed an exclusive contract with KTiCOM to provide w-cdma equipment worth 140 bn won for 2002. Followed by Mercury-Nortell, Ericsson, Samsung Electronics, LGE won the first place in two consecutive BMT, and was entitled to secure a priority in negotiation in May. This contract aims to support initial service, which is scheduled to launch in some parts of Seoul in June 2003. The initial service is world-first w-cdma service based on the global standard to enable global roaming with other foreign service carriers in the future. (Japan's NTT Docomo's FOMA service is not a global standard of w-cdma)


[OUTLOOK]
This contract can prove KTiCOM's intention to provide w-cdma service as scheduled although the total value of the contract is not significant. The total amount of KTiCOM's w-cdma capex has not settled, but 1.9 tn won is forecast to be spent until the network covers entire nation. LGE expects to gain 60%~70% of KTiCOM's future equipment order given its competitive edge in w-cdma technology. In addition, LGE expects to achieve a positive result from SKIMT's w-cdma bidding going forward.