SK Telecom partners Deutsche Telekom
SK Telecom CEO Jang Dong-hyun, right, signs a partnership deal with Deutsche Telekom CEO Tim Hoettges, at the SK Telecom booth at the Fira Gran Via exhibition center in Barcelona, Spain, Tuesday (KST). They agreed to collaborate on R&D for next-generation telecom technologies. / Courtesy of SK Telecom
By Kim Yoo-chul
BARCELONA, Spain ― SK Telecom, the top telecom firm in Korea by market share, agreed with Deutsche Telekom to expand their bilateral partnership in the area of Internet of Things (IoT) and research projects.
The agreement comes as the Korean firm is actively exploring overseas partnership to spur its next growth beyond traditional models during the current mobile convention here.
The partnership is calling for the two to collaborate in the following categories ― cloud streaming, international roaming, smart city and technology research and development (R&D) ― SK said in a statement.
Given Korean telecom companies’ weak presence in the global market, the latest bilateral pact is expected to help SK Telecom gain a bigger foothold in the global telecommunication industry.
“SK Telecom and Deutsche Telekom will cooperate in the global sales of innovative solutions and products and work together to lead standardization of innovative technologies, including 5G technologies and the Software-Defined Data Center (SDDC),” the statement said, Tuesday (Seoul time).
As part of the collaboration, SK Telecom and Deutsche Telekom will also make joint efforts to promote SK’s cloud streaming service.
“The two companies will conduct a feasibility test for its potential commercialization within Deutsche Telekom’s footprint by the second quarter of 2016. Through partnership with Deutsche Telekom, which has 6 million TV subscribers in Europe, SK Telecom expects to secure a bridgehead to enter into the European markets with its cloud streaming,” according to the release.
Another point is that the German telecom operator plans to introduce SK’s pico beamer, a laser projector, to Germany starting from the second quarter of this year and to expand beamer sales to other European countries.
The two companies will also cooperate in the international roaming service area, including quality improvements and LTE-based roaming services.
Another area of collaboration is in the Internet of Things (IoT) to develop innovative services in urban settings.
“The two sides are ready to combine their efforts to mutually investigate industry leading smart city solutions. This will enable the two to serve customer needs in the best ways possible to make their cities smarter and to expand the related services into new markets,” the release added.
The two telecom firms will also jointly develop futuristic business models by participating in diverse global projects.
“The two companies plan to drive standardization and implementation of fifth-generation (5G),” it said, adding SK will also team up with its German partner to promote the “Next Generation Enterprise Network Alliance” as founding members. The alliance is aimed at providing international network services for corporate customers, securely and reliably from a single source.
“The idea is to create an amazing technology partnership with tangible results. The development and exchange of new services will help both companies generate more benefits for our customers,” said Tim Hoettges, CEO of Deutsche Telekom. “We are really impressed with SK Telecom’s agility and creativity, and look forward to exchanging ideas and experiences.”
SK Telecom CEO Jang Dong-hyun has been maintaining a solid personal partnership with the Deutsche Telekom CEO, in what officials say is a “hidden force” to help SK Telecom enter into a period of strategic partnership.