South Korean handset vendor Pantech&Curitel acquired a majority stake in wireless carrier SK Telecom’s handset business, a move that could give the growing company additional weight in both the Korean market and the worldwide stage.
According to reports, Pantech&Curitel paid around $300 million for a 60-percent stake in SK Teletech, the handset business of SK Telecom. Although few outside Korea would likely recognize either company, both have worked to play in the international handset business.
Pantech&Curitel sells phones under a variety of brands, including its own, in South Korea, China, Russia and elsewhere. It initially began selling phones in the United States in 1998 through PrimeCo Personal Communications L.P., which later became one of the carriers cobbled together to create Verizon Wireless. In 2002, Pantech&Curitel signed a distribution deal with Audiovox to sell handsets in the United States.
Earlier this year, Curitel entered a bid to buy Audiovox Communications Corp., the handset business of consumer electronics company Audiovox Corp. The move would have solidified its position in the U.S. market. However, Curitel ultimately lost to wireless technology vendor UTStarcom.
Late last year, Pantech&Curitel announced a deal to sell 10 million Pantech-branded phones in the United States through UTStarcom’s Audiovox business. However, the company has yet to introduce any such phones in the American market.
SK Teletech too has recently played in the international scene. The company sells phones in South Korea as well as international markets. Recent reports indicated Nokia Corp. was in talks to outsource the manufacture of its CDMA EV-DO phones to SK Teletech. Both companies declined to comment on the reports.
Further, some reports indicate that SK Teletech is in discussions with Verizon Wireless to sell phones in the United States. Verizon generally refuses to comment on its handset activities.
The repercussions of Pantech&Curitel’s SK Teletech acquisition are unclear. However, the agreement will likely bolster Pantech&Curitel’s growing handset business and could give it additional weight in its efforts to expand in the U.S. handset market.
