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Korea¡¯s two leading electronic firms on the same day signed memoranda of understanding with Chinese digital multimedia broadcasting (DMB) companies. Samsung Electronics said it signed an MOU for cooperation in the terrestrial DMB sector with Beijing Yuelong Digital Broadcasting Media Technology on Wednesday at the request of the Chinese company, while LG Electronics exchanged a similar MOU with Guangdong Yue Guang DMB.
Samsung and LG both said they got a similar offer from a Shanghai company and each were considering a terrestrial DMB joint venture there.
Some analysts interpret China¡¯s wooing of Korean DMB business as a positive sign for the chances of local technology in the world¡¯s most populous market, but others are wary saying China is trying to get the DMB technology for free.
A Chinese official involved in the signing said Korean companies would provide equipment needed for trial broadcasts in return for Chinese assurances of preferential rights to supply handsets in the future. However, it has not been decided yet whether China will select Korean-type DMB as the standard. The official added China was testing various foreign DMB technologies.
A Korean source said every province and city in China had its own separate DMB project, variously closing deals with Finland¡¯s Nokia, Britain¡¯s Frontier Silicon and Germany¡¯s Bosch. This forced foreign companies to compete against each other while China itself does not invest a single yuan in DMB facilities, he said.
(englishnews@chosun.com )
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