Export insurer to provide coverage for Samsung's Saudi WiMax deal

By Lee Joon-seung

SEOUL, Aug. 5 (Yonhap) -- South Korea's state-run export insurer said Wednesday that it will provide coverage for Samsung Electronic Co.'s contract to set up a mobile, high-speed broadband service system in Saudi Arabia.

The broadband deal signed in June between Samsung and Mobily, Saudi Arabia's
second-largest mobile carrier, calls for the South Korean company to build mobile
base stations and operate the systems in four major cities, the Korea Export
Insurance Corp. (KEIC) said.
Under the deal, Samsung will ship out all related equipment needed to set up the
WiMax network this month with services to be provided early next year.
WiMax, developed in South Korea and the acronym for Worldwide Interoperability
for Microwave Access, is one of the latest telecommunications technologies that
allows wireless data transmission at broadband-like speed. South Korea currently
provides commercial service for the local version of WiMax, called WiBro.
Samsung said that with only 4 percent of the Saudi population using broadband
Internet technology, the WiMax deal could help it expand its presence in the oil
rich country and neighboring areas.
KEIC said the "knowledge service insurance coverage" will pay for losses incurred
by Samsung due to unexpected emergency situations and if there is a delay in
payment that is scheduled to begin in 2011.
yonngong@yna.co.kr