SKT, Deutsche Telekom sign 5G alliance

SK Telecom CEO Park Jung-ho, left, poses with Timotheus Hottges, CEO of Deutsche Telekom after signing a memorandum of understanding for a business partnership at the Mobile World Congress in Barcelona, Feb. 26. / Courtesy of SK Telecom

By Baek Byung-yeul

SK Telecom has signed on to technological partnerships with Deutsche Telekom in fifth-generation (5G) networks, security and media services, the country's largest mobile carrier said Sunday.

The two firms signed a memorandum of understanding for a business alliance on the sidelines of the Mobile World Congress (MWC) trade fair in Barcelona, Feb. 26.

“With the partnership, SK Telecom will share its 5G technology with the largest telecom firm in Europe,” the company said. The company launched a 5G service for industrial purposes Dec. 1, and plans to commence 5G full mobile services this month.

SK Telecom said it was able to sign the MOU with the German telecom firm thanks to its technological capabilities in the network, media and security sectors.

By sharing each other's strengths and knowhow in networks, security and media, the Korean firm said it will lay the groundwork for entering the European market.

Under the MOU, the two also agreed to evaluate potential options to develop their partnership, including setting up a joint venture for research and development and joint participation in development, marketing and investment in various sectors.

“We look forward to continuing our successful collaboration with SK Telecom,” said Tim Hottgest, CEO of Deutsche Telekom. “The expansion of the partnership will help both companies strengthen our global technology leadership and offer 5G and other innovative services to our customers.”

SK Telecom CEO Park Jung-ho said the two firms will try to find new business opportunities in Europe. “Through close cooperation with Deutsche Telekom, SK Telecom will seek new business activities in the European market for network, media and security technologies,” he said.

The possible joint venture will be an optimal trade-off for both, according to Choi Jin-sung, vice president of Deutsche Telekom.

“SK Telecom has secured advanced technology in 5G services and Deutsche Telekom has its strength in scale and diversity, doing business in 14 countries including the United States and Europe. The trade-off will be a trade-off for both,” the former chief technology officer of SK Telecom told reporters in Barcelona.

SK Telecom has multiple partnerships with Deutsche Telekom.

During this year's MWC, the two firms showcased blockchain-based digital identification technology after the two agreed to develop and commercialize this as it can be used in various sectors including access control, deals and contracts.