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May 09, 1997 in Social Responsibility News

SAMSUNG Makes Inroads into Ecuadorian Switching System Market

Seoul, Korea, May 9,1997: Samsung Electronics Co., Ltd. (SEC) has completed installation of a telephone switching system in Ecuador. SEC and Empresa Estatal de Telecommunications (EMETEL), a state-run company in charge of expanding the nation's telecommunications network, held a ceremony on May 9 in Quizapincha to mark the operation of the system.
In attendance were Ecuador President Fabian Alarcon, EMETEL President Roberto Pena, Korean Ambassador to Ecuador Yong-ha Cho and SEC Latin American Operations President & COO Soon Kim.

The Turnkey project involves SEC's providing EMETEL with a US$15 millionSDX-RB (Samsung Digital eXchange-Rural B)

switching system (21,000 subscriber line capacity) and support facilities, microwave and fiber optics transmission lines, subscriber cables and their installation, training for local technicians and follow-up maintenance and repair services.
Named the Rural Telecommunication Ecuador-Korea Project, or TREK, this project will ultimately connect the capital city of Quito with 30 other sites in 19 states.

Significantly, the purchase of the switching systems was made possible through an EDCF (Economic Development Cooperation Fund) loan from the Korean government.
That loan, which was the first ever provided to the Latin American region by Korea, made possible the first-ever export of a Korean-made switching system to Latin America, a market with huge growth potential.
With the success of this project, the groundwork has been laid for additional exports of SDX-RBs to the region.

By March 1998, SEC is scheduled to complete the linkup of all 31 sites, completing Phase I of the national telecommunications expansion project. A Phase II is also planned and it will entail an additional 33,600 subscriber line capacity to 42 more sites, including Guayaquil and Machala.
The Korean government is prepared to extend a total of US$30 million in loans to the Ecuadorian government to cover both Phase I and II.

Currently NEC, Ericsson and Alcatel are also involved in Ecuador's telecommunications market. From 1993, the Ecuadorian government finalized and has set to action its mid- and long-range strategies for developing the nation's telecommunications networks.
As of 1997, investment in this effort to expand the national network capacity to 1.5 million subscribers has reached W130 billion a year.
An ambitious and concerted effort is underway to provide telecommunication services to every part of the country.

Samsung Electronics Company Ltd., a US$19 billion company of the US$88 billion ('96) Samsung Group, is a world leader in electronics, order with operations in more than 60 countries.
The company challenges itself to make consumer electronics, semiconductors and industrial electronics that are effective, useful, simple and powerful. Samsung Electronics employs over 80,000 people worldwide.

EMETEL: The Ecuadorian government enacted a special telecommunications law in 1992 to improve the efficiency and productivity of the nation's outdated networks.
EMETEL was established to replace the Ecuadorian Postal & Telecommunications Bureau and provide an integrated, nationwide service.

SDX-RB: Development of this export model for rural networks was completed in 1994. The Inforex private exchange was remodeled for use as a public exchange in for SEC to penetrate markets such as China that demand low-cost, small capacity systems.
The new version was named the SDX-RB (Samsung Digital eXchange-Rural B), which is currently being produced locally in China. The SDX-RB exported to Ecuador was produced in Korea.

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