Under the terms of their agreement, NTT DoCoMo has purchased 310,702,080 shares of KG Telecom from the firm's principle shareholder, Taiwan Cement Co., for 55NT$** per share. The total amount of the stock purchase came to NT17,088,614,400$**
At the same time, both parties also signed a Memorandum of Understanding (MoU) to explore establishing a joint venture, which would provide mobile Internet services in Taiwan based on NTT DoCoMo's i-mode technology and business model.
NTT DoCoMo's investment will allow KG Telecom to expand its business opportunities and offer higher quality services as a result of DoCoMo's advanced R&D, communications technologies and its marketing expertise, which is epitomized by its popular i-mode service.
Mr. Leslie Koo, Chairman of KG Telecom, is confident that NTT DoCoMo's advanced technology, i-mode content and R&D know-how, will make his company a leader in wireless broadband services. "Our partnership with NTT DoCoMo will enable us to provide personalized, high quality services anywhere and anytime in the region," Koo said. Koo believes that NTT DoCoMo is an ideal partner in that it shares KG Telecom's vision of providing third-generation (3G) wireless communication services in Taiwan.
Dr. Keiji Tachikawa, President of NTT DoCoMo, said, "We would like to introduce mobile multimedia services, such as i-mode service delivered over GPRS and W-CDMA based 3G networks at the earliest possible date in Taiwan. This represents a breakthrough from traditional voice communication and result in the best possible value for Taiwanese Users. " Tachikawa continued. "DoCoMo's participation in KG Telecom's management fits in with our global strategy, which is to expand mobile multimedia and a 3G standard on a worldwide basis by establishing "win-win" partnerships with foreign entities."
About NTT DoCoMo
NTT DoCoMo is Japan's largest mobile communications company with a market capitalization of US$279 billion. As of October 2000, the Company had more than 33 million cellular subscribers. It had consolidated operating revenue of 3.7 trillion yen (approximately US$34.7 billion) in fiscal 1999 (year ended 31 March 2000). NTT DoCoMo was formed in July 1992 to take over the mobile communications operations and sales of Nippon Telegraph and Telephone (NTT). NTT DoCoMo provides nationwide services, including cellular, PHS, paging, satellite mobile communications, and in-flight telephone services. The Company also has subsidiaries in the United States, Europe and Brazil. In February 1999 NTT DoCoMo launched its i-mode service, which provides continuous connection with the Internet via mobile phones. The number of subscribers to the service exceeded 14 million by October 2000. NTT DoCoMo plans to introduce third-generation mobile communications services based on its W-CDMA system in May 2001.
About KG Telecommunications
KG Telecom, an experienced GSM1800 telecommunications service provider, is a subsidiary of the Koos Group. The Koos Group is aggressively investing further in expanding its satellite, CATV, wired and wireless broadband communications systems in Taiwan. KG Telecom is leading Taiwan's emerging telecommunications market, pioneering new technology and bringing unmatched services to its customers in Taiwan and abroad.
