UPDATED. 2020-10-19 19:27 (월)
LG Uplus secures 10-gigabit internet equipment 
LG Uplus secures 10-gigabit internet equipment 
  • Jong Jun Lee
  • 승인 2020.06.03 16:59
  • 댓글 0
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Telco signs long-term contract with suppliers
Image: LG Uplus
Image: LG Uplus

South Korean telco LG Uplus has signed long-term contracts with suppliers to secure equipment used to service 10-gigabit internet.

Dasan Networks said Wednesday it has signed a supply deal with LG worth 81.3 billion won. It will supply switch, Ethernet passive optical network and other equipment for use by the telco, it said. The contract will last from June 1, 2020 to May 31, 2023.

COVID-19 is increasing demand for ultra-high speed internet worldwide, a Dasan spokesperson said. The contract shows that the two companies will maintain a stable supply relationship, they added.

Another equipment vendor, Ubiquoss, announced last month that it was extending its contract with LG Uplus. The size of the contract has been increased to 234.5 billion won from 94.2 billion won. Expiration date has also been extended from 2021 to 2023.

A company spokesperson said LG Uplus was signing contracts with suppliers in the spirit of co-growth and offering favorable terms.

This contrast with competitor SK Broadband which was taking longer to negotiate with suppliers. Suppliers believe the company was pressuring them to cut unit prices down.

Meanwhile, KT was the first to commercialize 10-gigabit, or 10Gbps, internet in November, 2018. SK broadband rolled out its own service in December last year.

LG Uplus launched theirs earlier this year. 


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