S. Korea says it has cell-phone deal with North


The Koreas are at odds over asylum seekers in China, and there are still no phone links over the Korean DMZ

By Alex Frew McMillan and wire reports

SEOUL, South Korea -- North and South Korea will cooperate to develop CDMA cell-phone service in the north, the South Korean government says.

Officials reached a deal with their North Korean counterparts in the north's capital, Pyongyang, South Korea's Ministry of Information and Communication announced this week.

A team of eight South Korean communications executives and officials visited North Korea from June 4 to 7.

The deal could mean North Korea gets a CDMA mobile phone service as early as this year.

"The two Koreas agreed to jointly push ahead with CDMA-based mobile phone service projects in the North," Byun Jae-il, an assistant communications minister, said at a press conference on Monday.

Deal still not inked

But the arrangement is still tentative. North Korea has yet to give full approval.

Officials from both sides will meet within a month, either again in Pyongyang, or in the Chinese capital, Beijing, according to Byun.

He led the South Korean delegation, which met counterparts from the North Korean Ministry of Post and Telecommunications.

According to the Korea Herald, North Korea has "great enthusiasm" for the project and is already working on a feasibility study. Despite limited research on the topic, the North Korean officials agree that CDMA technology is the best available.

China often acts as a go-between for the two Koreas, who remain technically at war. North and South Korea never signed a peace treaty after their civil war in the 1950s.

No direct links over DMZ

There are still no direct communications over the demilitarized zone that separates the two Koreas.

Tensions between the Koreas escalated again over the weekend, with eight North Korean refugees seeking asylum in the South Korean consulate in Beijing (full story).

If the plan to share CDMA service goes ahead, South Korea's largest cell-phone carrier, SK Telecom, and its largest land-line carrier, Korea Telecom, would offer their CDMA equipment in North Korea.

Handset makers Samsung Electronics and LG Electronics also sent representatives to Pyongyang.

"South Korean companies will form a consortium to help avoid any risks arising from doing business in North Korea," Byun said.

United States may step in to talks

But the United States may yet enter the already complicated negotiations. CDMA -- or "code division multiple access" -- service was first developed in the United States, by Qualcomm Inc.

Byun said U.S. officials might try to block North Korea from using CDMA cell-phone technology for defense purposes. South Korea is lobbying the United States on that front.

Korean stocks are moving ahead again on Tuesday, with the Kospi up 0.42 percent at 815.33. But stocks like Samsung Electronics are lower on a down day for chipmakers.