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South Korea delays wireless Internet decision due to U.S. pressure

WASHINGTON-The Bush administration today confirmed South Korea will delay until June a decision to mandate a government-backed wireless Internet standard benefiting domestic firms at the expense of San Diego-based Qualcomm Inc. and others, a development that comes in response to U.S. pressure and in advance of a scheduled decision in Seoul later this week on other technical rules viewed by American officials and industry as protectionist.

South Korea had been set to approve its homegrown Wireless Internet Platform for Interoperability this month. In early December, U.S. Trade Representative Robert Zoellick complained by letter to South Korean Trade Minister Hwang Doo-yun about that government’s role in the development of WIPI and other wireless standards.

The United States argues any wireless standard that is not technologically neutral and helps only the nation that created it violates World Trade Organization free trade rules.

As it stands, the WIPI standard effectively prevents the deployment of Qualcomm’s BREW downloading software.

In a Dec. 30 response to Zoellick, according to a USTR official, Hwang said South Korea will hold off until June on the WIPI matter.

Meanwhile, South Korea is expected to vote Friday on a key technical rule for portable Internet service designed for the 2.3 GHz band. U.S. officials suspect the vote will effectively give an inside track to Samsung Corp., while disadvantaging U.S. companies ArrayComm Inc. and Flarion Technologies Inc.

In addition to WIPI and 2.3 GHz, U.S. officials suspect Seoul wants to set a standard for a wireless location-based service that could keep companies from the United States and elsewhere out of the South Korean market. On a related front, the Bush administration has heightened its scrutiny of alleged intellectual piracy in South Korea.

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