Hyundai Electronics Industries Enters the Wireless Local Loop Market

This sale accelerates HEI’s entry into the Brazilian market, which is the largest WLL market in the world. ICOTEL has already completed its production and assembly line and is prepared to begin local production of its fixed wireless terminals, of which HEI is providing Complete Knock Down(CKD) kits. Under the terms of the contract, HEI expects to ship 1 million equipment kits, valued at approximately $200 million, to ICOTEL. Royalty fees for the transfer of technology will amount to an additional $7 million. Under the terms of the contract, HEI expects to ship 1 million equipment kits, valued at approximately $200 million, to ICOTEL. Royalty fees for the transfer of technology will amount to an additional $7 million. Although the global WLL market is currently in the early stages of development, the total number of subscribers is expected to exceed 100 million in 2004, then climb to 200 million in 2006. The markets showing the most rapid growth are Brazil, India, and China. The proven technology provided by HEI, combined with the market leadership that will result from this contract, will accelerate opening of the Code Division Multiple Access (CDMA) market in South, Central, and North America. Particularly in Brazil, economic development has triggered an increasing demand for telecommunications. As a result, Brazil is emerging as the world’s largest CDMA WLL market. HEI was the first in the world to commercialize CDMA technology in 1996, and has since been supplying CDMA equipment to local customers in Korea. Now HEI has completed development of its IMT-2000 system and will soon provide trial service to Korean and overseas customers. HEI expects to complete a commercial launch of the IMT-2000 system by early 2001. The ICOTEL Inc., founded at Sao Paulo in 1983, is a specialized manufacturer of more than 400 kinds of electronic parts and products. The company also supplies Key Phones to Alcatel on an OEM basis.