SLD Telecom, in which SK Telecom (www.sktelecom.com) and LG Electronics are major shareholders, announced final approval of the CDMA cellular phone business directly from the Vietnamese government on the 19th of September. This is a joint venture with SPT (Saigon Post & Telecommunication Services Corp.) which is the second largest mobile communication company in Vietnam.

On September 18, Hyo-Jin Choi, managing director of Overseas Business Division of SK Telecom, received the CDMA cellular phone business license in a representative capacity of SLD Telecom from Tran Xuan Gin, the Minister of Planning & Investment for Vietnam. The granting of this business license was a follow-up procedure after the verbal promise of Tran Duc luong, the Head of State of Vietnam, when he visited Korea on the 23rd of August.

From the time that SK Telecom first approached SPT Corp. to reach MOU for providing the CDMA cellular phone service in Vietnam in August 1997, it took four years to finalize the deal and enable the company to officially do business.

Following this approval, SLD Telecom will furnish a cash investment as well as its operating know-how in CDMA technology. SPT Corp. will provide the CDMA cellular phone service nationwide in Vietnam for 15 years on the basis of 12Mhz bi-directional frequency of 800Mhz. SPT Corp. also has the rights to conduct a CDMA mobile communication business in Vietnam.

SLD Telecom will first construct the service network in the main cities in Vietnam (Hochimin and Hanoi), then they plan to launch the CDMA cellular phone service during the first part of next year. For this project, SK Telecom will conduct and manage the CDMA cellular phone service, and LG Electronics will supply the main system equipment.

SK Telecom has the blueprint for growth based on its superior CDMA 2000-1x technology and superb business experience in mobile communication. The short-term goal is to capture more than 40% of the cellular phone market in Vietnam. The mid and long-term goal is to grow and exceed the first mobile communication company in Vietnam by marching into IMT-2000, a type of advanced communication system.

The leaders of SLD Telecom, SPT Corp. and Vietnamese DGPT (Department of General Post & Telecom) gathered at a dinner meeting on the 18th of September to celebrate the acquiring of the CDMA business license, and to discuss their cooperative efforts toward early initiation of CDMA service.
In addition, they will have a celebration banquet with Hochimin governmental officers on the 20th in the city of Hochimin which will be the main business base of SLD Telecom.

(*Note 1.)
SLD Telecom was cooperatively formed by SK Telecom, Dong-Ah Elecomm, and LG Electronics in April of last year with a capitalization of 87,690 thousand US dollars. SK telecom contributed 53.8%, LG Electric 44% and Dong-Ah Elecomm 2.2%. The investment in SPT Corp. and BCC is about 220 million US dollars including transfer of equipment, technology, and liquid capital. The profit generated from the CDMA cellular phone service will be divided by them for 15 years.


Attachment: SK Telecom reaches milestone in the CDMA cellular phone service business in Vietnam

-Aug. 1997 MOU-signed cooperation agreement with Saigon Post & Telecommunication (SPT) for provision of CDMA cellular phone services.
-Aug. ~ Dec. 1997 Cellular phone service based on CDMA technology presented and recommended to the Vietnamese government.
-Dec. 1997 Business proposal submitted to SPT.
-April 1998 Company selected as potential partner in the face of competition with 4 companies.
-Nov. 1998 The basic framework of SK Telecom?s investment in the form of a Business Cooperation Contract(BCC) is concluded through the signing of an Agreement In Principle (AIP)
-Nov. 1998 ~ 1999 Specific conditions of the BCC based on the AIP agreement discussed with SPT.
-Jan. 2000 Dong-Ah Elecomm decided to take part in the investment in the Vietnamese CDMA cellular phone service business.
-April 5, 2000 Joint venture called SLD Telecom formed by SK Telecom, Dong-Ah Elecomm, and LG Electronics for investment purposes.
-April 10, 2000 Contract In Principle (CIP) concluded.
-May 2000 Working-level negotiations finalized on entire terms and conditions of BCC.
-Sept. 18, 2000 Contract signed on cellular phone network design and construction in Hochimin and Hanoi.
Agreement In Principle signed by SK Telecom and SPT regarding the training program and transfer of CDMA technology.
-Oct. 10, 2000 BCC concluded.
-Aug. 8, 2001 A delegation from the congress of Vietnam visited SK Telecom.
-Aug. 22, 2001 Company obtained the Vietnamese government?s approval of the investment in the CDMA service business in Vietnam.
-Aug. 24, 2001 The head of state of Vietnam visited SK Telecom.
-Sep. 18, 2001 Vietnamese Ministry of Planning & Investment granted final approval for the CDMA cellular phone service business.