Posted on koreaninsight.com
Last Sunday, the Korean Blue House (the presidential office) publicized Ericsson’s plan to invest $1.5 billion in Korea for the R&D of LTE technology. The statement came after a meeting of Korean President Lee Myung-bak and Ericsson`s CEO Hans Vestberg in Sweden. The Blue House touted it as one of Lee`s major achievements in attracting foreign investment into the country. But it was corrected quickly by Ericsson spokesman asserting company had not such intention. Why does this happen?
[Handshake between Chairman of KCC and CEO of Ericsson]
The context is the current battle for the 4th mobile communication dominant technology. Two standards are competing: WiBro is the South Korean developed variant of mobile WiMax, while Ericsson champions 3GPP Long Term Evolution, LTE. Currently, LTE progresses globally, and Ericsson Korea said LTE would become the dominant technology in the market, accounting for 90 percent of the global market in 2014. Rival mobile WiMax will account for only 1 to 2 percent, according to Ericsson Korea.
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