LG unveils world's first broadband multimedia phone

The state-of-the-art mobile phone resolves problems surrounding the bulky terminal size and power consumption of previous terrestrial DMB terminals, which lacked mobile phone functions. The phone is equipped with a mega-pixel camera and MP3 player functions. LG has built a standard home TV antenna function into the new phone to receive broadband DMB that adopts the DMB-receiving System-on-Chip (SoC). The chip enables users to watch terrestrial broadcasts and talk on the phone at the same time. The phone can broadcast continuously for two and a half hours.

"This terrestrial DMB phone has opened up a new world where people can watch terrestrial DMB TV and simultaneously speak via a mobile phone," said K H Kim, President, LG Electronic Middle East and Africa Operations. "The phone uses our handset design technologies and terrestrial broadcast-receiving chip, giving it the competitive edge in size, performance, and convenience. By overtaking Europe in launching the terrestrial DMB phone, we can have a bigger voice in setting global standards."

LG invested nine billion US dollars to develop the phone, developed over two years by 130 top researchers. The company has filed 150 patents applications for technologies, including H.264 video decoder enabling technology.

"DMB technology will open up a new world of mobile possibilities. This breakthrough, along with our satellite DMB phone, the SB-100 unveiled in May 2004, has proved LG's capabilities, giving us the momentum to lead the multimedia mobile handset market revolution. Using the terrestrial DMB phone technologies, LG will aggressively penetrate markets including Europe, South America and China. I am convinced this will help us achieve our goal of being the top three players in the global handset industry by 2006," Kim added.

The terrestrial DMB SoC can be applied to mobile phones, notebook computers, PDAs, and car terminals. LG, backed by its expertise in integrating DAB (Digital Audio Broadcasting) and FEC (Forward Error Correction) technologies, is developing various broadcasting-related technologies such as satellite and terrestrial DMB related handsets. The company will continue to enhance its product line up by upgrading broadcast receiving and battery capacity.

To upgrade product offering and expand existing capabilities, LG is also investing around US $ 400 million on its production facility in Taubate, Brazil. The plant will be operational by April 2005 and cater to the burgeoning Central and South American market with three production lines; around 20 percent of the plant's output will be earmarked for export. LG aims to produce 6.5 million CDMA/GSM mobile phones in Brazil by 2007.

"This expansion will largely reduce logistics costs and help drive sales within the Central and South America market. By the end of 2005, LG Electronics will manufacture 70 million mobile phones a year around the world, through its production bases in Korea, China, Mexico, India, Brazil and Pune, India, scheduled to commence operations next year," said S. S Kim, CEO and Chairman, LG Electronics.