SKT, DT establish 5G technology joint venture | Mobile | News | Rapid TV News
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Six months after forming a technology partnership designed to alleviate challenges caused by the Covid-19 outbreak, SK Telecom and Deutsche Telekom have now entered into an agreement to establish a German-based joint venture designed to provide innovations in 5G technology.
SKT DT joing venture 9 Nov 2020
The creation of the joint venture is still subject to mandatory regulatory approval but expected to close before the end of 2020 and has been created so that each partner will hold 50% of the equity in the joint venture in which the two companies will aim to develop advanced 5G in-building solutions and develop market opportunities starting with Europe. In the mid-to-long-term, they will also aim to evaluate opportunities to cooperate in the areas of augmented reality and virtual reality services, mobile edge computing (MEC) and the app market.

Putting forward the rationale for developing in-building solutions, the firms cited research showing that the global market for in-building distributed antenna systems (DAS) is expected to be worth $10.33 billion by 2023, growing at a CAGR of 10.1% between 2018 and 2023. And noting that there are not yet strong players dominating the market for 5G repeaters, the joint venture partners says that by combining their respective strengths they will be well-positioned to pioneer the market.

Under the terms of the partnership, SKT will contribute the technology assets it has developed over the years to the joint venture. The company has already provided 5G/LTE dual-mode repeaters to support DT’s customer trial for in-building coverage carried out in eight different cities in Germany, namely Berlin, Hamburg, Bonn, Cologne, Munich, Darmstadt, Frankfurt and Leipzig - from August to October 2020. The firms say that customer trial results have shown that users experienced significant improvement in 5G and LTE experience with this test device.

The joint venture is additionally scheduled to complete the development of an advanced 5G/LTE dual-mode repeater.

“Together with SKT we are able to develop new and innovative products which enhance customer experience,” remarked Deutsche Telekom CEO Tim Höttges. “The first feedback from repeater customer trial has shown the value of our partnership - for us, but more importantly, for our customers. We will start with the repeater, but this joint venture is aiming at a much higher goal. That goal is to create major innovations for both companies in the years to come.”

“The partnership between SKT and Deutsche Telekom is very meaningful at a time when the world is heavily affected by the Covid-19 pandemic,” added Park Jung-ho, CEO of SK Telecom. “The deepened bond between the two companies will play an important role as a bridge between Asia and Europe and lead us to new technologies that can bring greater value to humanity.”