(Source: DigitalMediaAsia) SK Telecom and China Unicom are understood to have decided on a ‘jointhandset sourcing’ in order to target the markets of South Korea andChina. This is reportedly the first time that any conspicuousachievement has been announced since the alliance between the twocompanies. On 21 June, SK Telecom established a contract for purchase of CBs(Convertible Bonds) worth $1bn issued by China Unicom. Also, throughthe establishment of a ‘Strategic Alliance for CDMA Services’ withChina Unicom, SK Telecom announced alliance and co-operation in jointhandset sourcing, joint development of additional services, jointplatform development, marketing/distribution, CRM and network. As a result, for specific implementation ofthe six areas of alliance between SK Telecom and China Unicom, aconsultation group and task force consisting of 50 working levelmembers from both companies are in operation, with discussions onspecific ways of cooperation through mutual provision of consulting ineach area, sharing of expertise and provision of market information. SK Telecom and China Unicom have agreed to source joint handsets ofsix types in the first half of 2007 for the South Korea and Chinamarkets, and plan to continue expanding the supply of model types andvolume by 2008.