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Daewoo Telecom Partners with Alcatel to Capture Korea's ADSL Market

Strategic Insights

— 1 min read

Daewoo Telecom has joined forces with Alcatel to supply ADSL equipment to the Korean market, aiming to capture a share in the rapidly growing high-speed Internet connection market. Under the deal, Daewoo will provide telecom equipment capable of accommodating about 1 million users. The partnership is expected to strengthen Daewoo's competitive edge in the telecom equipment field and drive the growth of the ADSL market in Korea.

Key Takeaways:

  • Daewoo Telecom has signed a deal with Alcatel to sell ADSL equipment in Korea, targeting the fast-growing high-speed Internet connection market.
  • The partnership will enable Daewoo to provide telecom equipment capable of accommodating about 1 million users starting from next year.
  • The deal is expected to help Daewoo emerge as a chief supplier of high-tech gear in the local market, given the Asia-Pacific region's potential for 2.5 million ADSL users in 2000.
  • To strengthen the product's marketing edge for the Korean market, Daewoo plans to increase the portion of home-grown parts in the equipment industry to 80% by early next year.
  • Alcatel's top executives and engineers visited Daewoo's Sihung factory to gauge the technological level of ADSL production lines.
  • Daewoo Telecom has already supplied ADSL equipment to Hanaro Telecom Inc. and Korea Telecom, covering around 100,000 subscribers.
  • The domestic ADSL market is expected to grow to 200,000 subscribers this year and reach 1 million users next year, driven by the booming Internet business.

Statistics:

  • 1 million: The number of users Daewoo will provide telecom equipment for starting from next year.
  • 2.5 million: The estimated number of ADSL users in the Asia-Pacific region in 2000, according to Alcatel.
  • 80%: The portion of home-grown parts in the equipment industry that Daewoo plans to increase by early next year.
  • 100,000: The number of subscribers covered by Daewoo's existing ADSL equipment supplied to Hanaro Telecom Inc. and Korea Telecom.
  • 200,000: The expected number of ADSL subscribers in the domestic market this year.
  • 1 million: The expected number of ADSL subscribers in the domestic market next year, driven by the booming Internet business.

Sources:

  • "Daewoo Telecom signs deal with Alcatel" (unnamed source)
  • "Korea Telecom, Hanaro to provide high-speed Net" by DB (unnamed publication)

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