SKT pledges to create ecosystem for startups

SK Telecom CEO Jang Dong-hyun, right, tries Google Glass at the Mobile World Congress exhibition, Barcelona, Spain, Tuesday (KST). / Courtesy of SK Telecom

By Kim Yoo-chul

BARCELONA ― SK Telecom CEO Jang Dong-hyun has emphasized the importance of encouraging smaller tech startups in the coming era of connectivity.

“I believe the creation of a new ecosystem for startups is more important in terms of customer value than pursuing a faster speed in the telecom industry,” he said on the sidelines of the Mobile World Congress (MWC) on Tuesday (KST). “SK Telecom’s main role will be the creation of the ecosystem for startups.”

He said the emergence of the Internet of Things (IoT) meant the company had to team with promising startups armed with high technology.

“You can't do it alone,” Jang said. “IoT is the industry's mega trend and I see few successful business models within the IoT frame," according to the executive.

“A single company can't effectively handle all converged services, meaning that someone should create a platform. Within that platform, new business models will come," he told the Korean media.

“Idea-enriched startups are positioned well to propose innovative models. We will help them develop such ideas into real business," Jang said.

SK Telecom plans to commercialize its Mobius platform as early as May. Mobius is an open IoT platform based on machine-to-machine (M2M) standards, offering advanced connectivity of devices, systems and services that go beyond M2M communications.

“Mobius is still in an infant stage,” Jang said. “We have to admit that there will be more time before a takeoff. SK Telecom will closely partner with interested parties such as those which have merits in manufacturing.”

He said the company had approached Verizon Wireless of the U.S. about the issue.

Without support from startups, chances were low for emerging IoT businesses such as fin tech, mobile money and the 5G network to be profitable, he said.

“We are not a front-runner in the platform business in the industry,” Jang said. “What we need is to focus on customer needs and find out ways how best to fit such ideas into our business models.”

He said it was uncertain whether 5G mobile technology would provide differentiated, higher values to people.

“We expect to see a clash between networks and platform,” Jang said. “How we are going to apply standards will be the biggest challenging factor.”

In the question over the need for network neutrality, Jang said the issue is still debatable. “This isn't an easy issue.”

Network neutrality is the idea that users’ mobile, cable or phone Internet connection should treat all websites and services the same.

In the United States, big companies like AT&T, Verizon and Comcast want to treat them differently so those firms can charge customers more depending on what they use.

The Federal Communications Commission (FCC) is currently debating legislation to define limits for Internet service providers (ISPs).