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April 30, 1998 in Social Responsibility News

SAMSUNG Electronics Selected as Broad Band CDMA WLL Supplier to China

SEOUL, Korea - April, 30, 1998 - Samsung Electronics Co., Ltd., has become the first company selected to supply a broad band CDMA Wireless Local Loop (WLL) to China. The system will be used as a test network. China United Telecommunications Corp., China's second state-run telecommunications operator, has made Samsung Electronics its final selection to supply the test broad band CDMA WLL network. As such, Samsung Electronics will be the world's first to supply a broad band CDMA WLL system to China; the system will be installed in the city of Chongqing.

Superintendent (CEO) Jiang Yongsing (China United Telecommunications Corp. in Chongqing) and Samsung Electronics Overseas Division Managing Director, Kim Taek-hee, signed the supply contract in Chongqing on April 28. The regional topography includes mountainous areas and vast plains, making the installation of a wired network difficult. Therefore, China United Telecommunications Corp. decided to purchase a broad band CDMA WLL system and began the process of selecting a supplier from among more than 20 major telecommunications hardware makers worldwide, including Motorola and Qualcomm. Ultimately, Samsung Electronics was selected because the Chinese government recognized superior technology which was used to commercialize an excellent WLL system that offers the same voice quality as a wired system does.

The Chinese WLL market is expected to explode, with new capacity demand reaching some two million subscriber lines annually from the year 2000. Being selected as China's first broad band CDMA WLL supplier, Samsung Electronics is in a strong position to take a lead in this burgeoning market.

In 1997, Samsung Electronics was selected to supply CDMA cellular systems to Shanghai and Tianjin. This latest triumph is further testimony to the excellence of Korean-made CDMA systems.

Samsung Electronics will deliver the new broad band CDMA WLL to Chongqing in the first half of this year, and test operationt is scheduled to begin in the second half.

In 1996, Samsung Electronics began intensive research of sophisticated broad band CDMA technology, which processes voice and picture data faster than the narrow band CDMA technology can.

Wireless Local Loop

The WLL is a telecommunications service that uses wireless networks to carry communications from the wired subscriber network. Various terminals in the home or office are connected with the telephone company wirelessly. The service covers voice, fax and video data transmissions.

Installation of the WLL costs no more than half that for a wired system. The digital service offers excellent call quality, with virtually no noise or cross-line interference. There is no need to bury optical cable in the ground or to replace old cable. System maintenance and repair are easy, and natural disasters will not damage the system.

Application Range
The broad band CDMA WLL is well suited for areas where installation of wired networks is difficult and costly, such as tundra or vast open plans. It is also the system of choice for new telecommunication service carriers who have to invest large sums to build new networks.

The system is made up of microwave, analog cellular and digital cellular components. Users prefer CDMA to TDMA for digital cellular service that handles voice, text and video transmissions. CDMA technology can be divided into narrow band and broad band, and the market for broad band networks is expanding, particularly for use in densely populated areas.

Samsung Electronics Co., Ltd., a US $13 billion flagship company of Korean-based the Samsung Group, is a world leader in electronics, with operations in more than 60 countries.

Jenny Chung
Corporate Communications
Samsung Electronics Co., Ltd.
Tel. (82-2-727-7692,7838/7823)
Email: jhnee@samsung.co.kr

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