April 25, 1996 in Social Responsibility News

SAMSUNG to Supply 1.3 Million CDMA PCS Terminals to Sprint Spectrum L.P.

Sprint Spectrum L.P., the largest PCS provider in the US, is a joint venture of Sprint Corp., Tele-Communications Inc. (TCI), Cox Communications, and Comcast Corporation (all US based companies). Last year, in the FCC's first auction of next-generation wireless licenses, the partners invested US$2.11 billion to acquire PCS licenses in Major Trading Areas (MTAs) and thereby won rights to wireless licenses in 29 trading areas, representing 70 percent of the US population (182.4 million people).

The 1.3 million CDMA PCS terminals Samsung will supply to Sprint Spectrum are super-small (145 mm x 54 mm), super-light (170 grams) and super-slim (22 mm), and offer the same features as current analog and digital cellular phones. The terminals will operate at a broad band frequency of 1.9 GHz. Samsung Information Systems America (SISA), a multimedia research facility run by Samsung Electronics in the US, is currently developing software for the new CDMA PCS terminals to meet US market needs.

Samsung believes that this deal will serve as a springboard for the company's further marketing efforts of CDMA products, not only in the US, but around the world. Company officials did not disclose the monetary value of the deal.

CDMA BACKGROUND
Korean companies were the world's first to commercialize the CDMA system, which increases current analog cellular network capacity by more than 10 times. CDMA is based on modulating the signal from each user by using unique digital code that spreads the spectrum of each user's signal across a wide bandwidth. Other benefits of CDMA include enhanced voice quality, powerful cell hand-off, data communication and position location, improved multipath resistance, fewer cell cites, more privacy, longer talk time, and a flexible limit to the number of calls per cell. Therefore, CDMA is the most advantageous technology to use with portable phones.

PCS FUTURE
Sprint Spectrum L.P., founded ein 1994, currently employs 1,600 people and has 33 offices throughout the US. The company is focused on its preparation for offering CDMA personal communications services.

Samsung Electronics Company Ltd., a US$21 billion flagship company of US$80 billion, Korean-based Samsung Group, is a world leader in the electronics sector, with operations in more than 60 countries. The company develops, manufactures, and markets audio and video products, household electronics goods, computers & peripheral products, display products, telecommunications & information systems, software tools & semiconductors.


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