By Yoon Sung-won
SK Telecom has taken a favorable position in the race for establishing a nationwide Internet of Things (IoT) ecosystem, thanks to a markdown of the IoT modules the company has chosen to use.
According to an industry source, Tuesday, the per unit price of Low Power Wide Area (LoRa) IoT modules has been settled at $5, about half market expectations.
As the price of long-term evolution machine (LTE-M) IoT modules is estimated to reach $10, SK Telecom will have a price advantage.
“All three telecom companies are pushing for the establishment of nationwide IoT networks and the key is encouraging production of more connected devices to their networks by providing modules at more attractive prices,” the industry source said. “It is likely that the companies will competitively offer modules at lower prices to expand the presence of their own IoT ecosystems.”
KT has chosen the LTE-M modules for its nationwide IoT network, while LG Uplus has released IoT modules it has developed based on the Category 1 LTE standard. Expectations are that both models will be priced at about $10, which is cheaper than ordinary telecom modules priced at around $30 but more expensive than the LoRa modules.
Earlier this year, SK revealed its plan to build a nationwide IoT network and said it will concentrate on three major IoT sectors ― remote metering, location tracking and monitoring ― as well as personal security services for children and the elderly.
To this end, the company pledged to offer some 100,000 IoT modules for startups to design and manufacture connected devices not only for consumer products but also industrial machines compatible with its network. This way, it will be able to roll out more services with high added value.
SK Telecom has said it will pick four subcontractors to supply the LoRa modules.
“Though the lower unit price of LoRa modules will bring smaller margins to the subcontractors in the short term, they can seek greater business opportunities once the market for IoT services expands on the back of SK Telecom’s strong drive,” another industry source said.