July 25, 2000 in Social Responsibility News

SAMSUNG Electronics Wireless CDMA Network Opens in Australia

SEOUL, Korea - July 25, 2000 - Samsung Electronics Co., Ltd. has completed installation of the CDMA wireless network it has supplied to Hutchison Telecom Australia Ltd. This project has gained particular attention as the CDMA wireless network has been commercialized in a nation that already has GSM networks.

Australian wireless operator Hutchison invited the Information & Communications Minister in Australia, Samsung Electronics Executive Vice President & CEO, Ki Tae Lee and various industry insiders to take part in a ceremony marking the official opening of the CDMA network.

Samsung Electronics has completed installation of 427 base stations, providing 95% coverage. Hutchison will initially serve 14,000 subscribers and expected to have at least 400,000 subscribers in Sydney and Melbourne by next year.

At least 70% of all Australians live in the Sydney and Melbourne metropolitan areas. They will now have access to CDMA wireless communication service that is available at 800MHz. This will also be the first time that the Local Zone Service, exclusively developed by Samsung Electronics, will be provided.

Local Zone Service allows the subscriber to use the wireless handset like a cordless model within a 1km radius of his or her residence. The distinctive value-added service, which will be offered at local call rates, is expected to be a big hit with local consumers.

With the success of this project, Samsung Electronics and Hutchison are expanding their cooperation to include the cdma2000 format. During the upcoming Sydney Summer Olympics, a demo 3rd-generation wireless service will be exhibited at the Olympic Center.




Australia, which already has some 4 million people subscribing to GSM wireless service, has adopted the CDMA format as well. The success of the Samsung supplied project demonstrates the excellence of CDMA technology to the entire world. As a member of the British Commonwealth, Australia has been exclusively using GSM for its wireless communications until now. However, the launching of the CDMA network is expected to see expanding use of the new technology in the country.

Samsung Electronics is negotiating with Hutchison for the supply of a cdma2000 system, and a contract is expected to be finalized this year so that service can be offered in 2001. This project will help Samsung to break into other markets for the next-generation wireless communications networks in the Americas, China, Southeast Asia and the Asia Pacific.

In supplying the system hardware to Hutchison, Samsung Electronics was also named the supplier for at least 90% of the CDMA terminals required. This project has thus been a model of wireless communications equipment export for a Korean company.

Unlike hardware makers in the US and Europe, Samsung Electronics is in the advantageous position to supply both the systems and the terminals. This capability creates a synergy effect that secures a competitive edge in international markets.


In December 1998, Samsung Electronics won out in an international tender to supply CDMA equipment to Hutchison Telecom Australia Ltd. on a turnkey basis. The US$218 million contract calls for Samsung to design the CDMA cellular network, install the hardware, start up operation and provide maintenance and repair services for ten years.

Hutchison Telecom Australia Ltd. is a wireless service operator that is owned by the Hutchison Group of Hong Kong (70%) and the Barry Robert Thomson family of Australia (30%). This current CDMA service will be offered in the 800Hz spectrum, and the company has already secured the right to use the 1.8GHz band. The company is currently planning to bid for the 2.1GHz band as well.

About Samsung Electronics
Samsung Electronics Co., Ltd., with 1999 sales revenue of US$22.8 billion is a world leader in the electronics industry. The Korea-based concern has operations in about 50 countries with 54,000 employees worldwide. The company consists of three main business units: Digital Media, Semiconductors and Information & Communications Businesses. For more information, please visit our website, http://www.samsungelectronics.com


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