"The cooperation between SK Telecom and the Chinese government to promote 3G services is an example of overall strengthening of ties between our countries."

SK Telecom (www.sktelecom.com/eng) announced on April 10 that it held the launching ceremony for its Time Division-Synchronous CDMA (TD-SCDMA) Test-bed at SK Telecom’s Mobile Device & Access Network R&D Center in Bundang, Korea. The TD-SCDMA Test-bed is a joint project of SK Telecom and the Chinese government. About 300 Korean and Chinese government officials and telecom-related officers participated in the ceremony. Among those in attendance were Wen Jiabao, Prime Minister of China, Jun-hyong Rho, Korean Minister of Information and Communication, and Tae Won Chey, Chairman and CEO of SK Corporation.

On August 28, 2006 SK Telecom signed a memorandum of understanding (MOU) with China’s National Development and Reform Commission (NDRC) for cooperation on development of the "TD-SCDMA Project". As part of the agreement, SK Telecom established the TD-SCDMA Service Development Center in Beijing on February 6 of this year. The Center has been conducting research on network operating technologies, 3G services and terminal platforms, and will continue to research and develop 3G follow-up and 4G technologies. 

An SK official said that the TD-SCDMA Test-Bed, together with the TD-SCDMA Service Development Center, will play a crucial role in strengthening the competitive edge of TD-SCDMA technology and promoting the 3G service in China.

Quoting figures published by the Gartner Group, a global research institute, the official said that the China’s 3G service-related investment is expected to reach $10 billion US over the next four years. SK Telecom has significant experience developing and operating 3G technologies such as CDMA, WCDMA and TD-SCDMA, all of which the Chinese government is seeking to develop as key infrastructures to ensure its continuing economic growth. SK Telecom is particularly keen to see TD-SCDMA technology established as a global standard, and sees China’s favorable response to the technology as extremely promising.

With today’s opening of the TD-SCDMA Test-bed, SK Telecom will execute key tasks such as network construction and interoperability tests, server and terminal platform function tests, and 3G multimedia and convergent service development. The company will also watch for and resolve any problems that may arise in the process of launching large-scale commercial services. In addition, SK Telecom intends to make every effort to accelerate the commercialization of TD-SCDMA service through systematic cooperation with the Development Center in Beijing.

SK Corporation CEO Tae Won Chey remarked on the opening ceremony, saying, "This agreement has great significance, as it provides a concrete business model for mutual growth of both Korean and Chinese companies. SK Telecom’s technical capabilities and network operating experience will be the key to TD-SCDMA’s growth as a global technology. It will provide momentum for developing China’s entire telecommunications industry."

Information and Communication Minister Jun-hyong Rho commented in his congratulatory speech that "The opening of the TD-SCDMA Test-bed is the first successful combination of Korea’s advanced technological edge and the Chinese government’s drive to promote advanced telecommunications technologies. I hope our two countries’ cooperation continues to lead the global telecom industry beyond Asia".

As part of SK Telecom’s multi-pronged strategy to become a major player in China’s telecommunications market, as it has forged long-term partnerships with Chinese telecom operators and government bodies. The company invested $1 billion US in China Unicom last year, and established Cyworld China in February 2007. SK Telecom is currently working on the establishment of a holding company in China. 

Shin Bae Kim, president of SK Telecom, commented that "From the Chinese government’s point of view, the TD-SCDMA Test-bed, as the first pilot network built in a foreign country, is an excellent model for China to follow as it advances to the global market. It establishes a solid foundation for the two countries’ cooperation on future generation telecommunications technologies, and secures technological leadership for two important world economies."

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About SK Telecom
SK Telecom (NYSE: SKM, KSE: 017670) is the top wireless communication provider in Korea, where it has more than 20 million subscribers taking up more than 50% of the total market. The company, established in 1984, reached KRW 10 trillion (USD 10.7 billion) in revenue in 2005. SK telecom was the first to launch and commercialized CDMA, CDMA 2001x, CDMA EV-DO and HSDPA networks, and it currently provides cellular, wireless internet, mobile media, global roaming service and more. For more information please visit www.sktelecom.com/eng