KT pledges to expand overseas sales

KT Chairman Hwang Chang-gyu, left, after signing an agreement with Turk Telecom CEO Rami Aslan, at the former’s exhibition booth during this year’s Mobile World Congress (MWC) at the Fira Gran Via exhibition center in Barcelona, Spain, Tuesday (KST). Under the partnership, both companies pledged to establish standards for fifth-generation (5G) wireless technology. / Courtesy of KT

Chairman Hwang aims to raise sales abroad to W2 trillion by 2020

By Kim Yoo-chul

BARCELONA, Spain ― KT, Korea’s second largest mobile carrier, pledged Tuesday to expand its overseas operations to boost its sales abroad to 2 trillion won by 2020 from 750 billion won last year.

“KT realized the need to go global for survival and future growth because KT’s traditional businesses face fiercer competition,” Chairman Hwang Chang-gyu said at a news conference on the sidelines of the Mobile World Congress (MWC).

Hwang said it will bolster existing business tie-ups and expand faster wireless-focused services.

To that extent, KT signed a memorandum of understanding (MOU) with Turk Telekom on business tie-ups.

Under the bilateral partnership, Turk Telekom’s mobile, fixed voice, broadband and TV services will be powered by KT’s fourth-generation (4G) Long Term Evolution (LTE) wireless technology.

“KT believes demand for faster wireless technology by the Turkish operator will be huge in accordance with its moves to introduce converged telecom-oriented services,” Hwang said.

He added the agreement also included a partnership to establish a standard of even faster fifth-generation (5G) wireless technology.

The 2016 MWC is highlighting efforts by telecom, software and hardware companies as 5G is beginning to take shape amid the growth of data-intensive devices and related solutions such as virtual reality.

KT has signed another deal with the government of Catalonia under which KT will supply its patented GiGA Wire technology to apartments in Barcelona.

Tourists in Barcelona could enjoy up to 600 Mbps Internet speed after the network is installed.

Hwang said that since the successful rollout of its superfast GiGA-dubbed Internet to broadband users, KT has successfully formulated plans to provide new GiGA services to boost its fixed line and wireless businesses, and to develop new convergence and platform businesses.

Its GiGA project will be expanded to Bangladesh after it finishes installing the GiGA network infrastructure on several islands in Korea.

“KT is very happy with the agreement to introduce LTE services to Maheshkhali Island,” he said. The island is located near the Bay of Bengal, Bangladesh. It is the most common attraction for tourists who visit the Asian country.

“Releasing LTE services on the island is in line with KT’s initiative called GiGA Island, to spread LTE networks to every corner of the island. Because the island is popular with tourists, the availability of faster Internet services will help the island spur digitalization,” Hwang said.

KT earlier attempted to grow its overseas businesses by making direct investments in foreign telecom companies. However, the company changed its global business strategy toward beefing up strategic collaboration instead.