Samsung to enter telecom sector

By Our Special Correspondent

NEW DELHI, MARCH 7. Samsung India today announced plans to strengthen its presence in the telecom sector in the country. The announcement closely follows an earlier one by the company where it declared its intention of focussing on the IT sector.

Its foray in the telecom sector appears to be part of the company's strategy to enlarge its range of offerings in India following the slowdown in the consumer goods and home appliances sector which till late was the mainstay of both Samsung and LG.

The Union Budget for 2001-02 had also failed to resolve the problem of sluggish demand facing the industry.

Samsung will attempt to take advantage of the recent government announcement where it allowed fixed phone companies to provide the poor man's mobile phone service (wireless in local loop based on CDMA technology) at no extra cost.

This was acknowledged by the company's head of Indian operations, Mr. K. S. Kim, who appreciated the decision to give limited mobility to the basic phone sector.

``We are taking the first step. We expect to replicate our global success with CDMA in India as well,'' he said at a news conference, adding that the company sees high potential in the Indian telecom market.

``We believe the government has decided to let both the technologies operate in order to achieve the tele-density target by the year 2005.

With a clear distinction established through limited mobility by CDMA and full mobility for GSM, we see both these technologies developing simultaneously in India,'' he observed.

However, the company's plan could get unstuck if the Telecom Dispute Settlement and Appellate Tribunal (TDSAT) upheld the plea by mobile phone companies which operate on GSM technology.

These companies have complained against the government's decision of granting wireless in local loop technology (WLL) to fixed phone companies on grounds that licence conditions bar them from offering mobility of any kind.

Since the case is before a court, as of now Samsung's plan in the telecom sector hangs in balance. However, so far the TDSAT has refused to stay the roll out of WLL networks by companies, including the two Government operators - MTNL and BSNL.

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Section  : Business
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