NTT DoCoMo Inc. and KT Freetel Co. Ltd. (KTF) have agreed to a comprehensive strategic alliance including equity participation. Under the agreement DoCoMo will invest approximately KRW564.9 billion to acquire a 10 percent stake in KTF through a third-party allotment of new shares and purchase of KTF treasury stock by the end of December 2005.
This alliance enables both companies to provide better services to customers in their respective markets through the development and promotion of mobile technologies and applications. The nationwide deployment and early stabilization of KTF's W-CDMA network, with DoCoMo's technical support, is key to achieving these objectives.
Principal objectives of this alliance include: seeking new business opportunities by fusing together the technical and marketing expertise of the two companies; examining the cost-saving opportunities, such as the standardization of the specifications of common equipment, etc; ensuring that KTF successfully deploys a nationwide W-CDMA network through the combination of DoCoMo's expertise in W-CDMA network operation and KTF's service development capabilities.
"This strategic alliance with DoCoMo was possible because KTF's overall competitiveness and strong willingness for the early commercialization of W-CDMA were highly appreciated," said Young-Chu Cho, CEO of KTF. "By further developing the collaboration between the two companies, which are providing the world's best mobile services, we will aim to secure leadership in global convergence services. This can also be a good opportunity for both countries' content providers and solution providers to extend their reach to overseas markets."