SK Telecom and Deutsche Telekom partner for 5GTuesday, June 25th, 2019
SK Telecom and Deutsche Telekom Join Hands to Lead Global 5G Market
- SK Telecom and Deutsche Telekom executives held a town hall meeting in Seoul, Korea to discuss 5G business strategies
- The two companies agreed to launch a joint venture company to develop attractive 5G technology and services
- SK Telecom will invest USD 30 million in DTCP’s USD 350 million Venture and Growth Fund II. DTCP is an investment management platform backed by Deutsche Telekom and other corporate and institutional investors
SK Telecom (NYSE: SKM) and Deutsche Telekom held a town hall meeting yesterday at Grand Walkerhill Hotel, Seoul, Korea. The meeting was attended by around 100 executives from both companies including Park Jung-ho, President and Chief Executive Officer of SK Telecom, and Timotheus Höttges, Chief Executive Officer of Deutsche Telekom, to discuss diverse 5G business strategies.
At the town hall meeting, SK Telecom and Deutsche Telekom agreed to establish a joint venture. The joint venture company will be first tasked with developing new 5G technologies, including a 5G repeater and a 5G in-building solution, as well as a Multipath UDP solution to manage accesses for a seamless connectivity experience and MPEG Media Transport (MMT) technology for low latency media streaming. Plans are also ahead for the joint venture to drive innovations in new platforms and applications to provide differentiated performance and experience in next-generation services.
Moreover, SK Telecom has committed USD 30 million to DTCP’s USD 350 million Venture and Growth Fund II. The company’s decision represents an additional measure to secure future growth engines by making proactive investments in promising high-growth companies in the 5G era.
DTCP is an investment management group with USD 1.7 billion assets under management and advisory from Deutsche Telekom and other corporate and institutional investors, and a portfolio of over 60 companies. The group is dedicated to providing venture and growth capital, private equity investments, and advisory services to the technology, media and telecommunication sectors. It operates and invests in Europe, the U.S. and Israel.
In the context of the SK Telecom investment, DTCP will open an Asian office in Seoul and work closely with SK Telecom to identify and foster investment opportunities in the Asian technology leaders of tomorrow.
“Through partnerships with companies throughout the world, SK Telecom aims to expand beyond the realm of mobile communications to become a global ICT company,” said Park Jung-ho, President and Chief Executive Officer of SK Telecom. “And I expect this, in turn, will lead to the revaluation of assets and competitiveness of SK Telecom.”
“DT/SK Telecom partnership continues to be of strategic importance for both DT and SK Telecom.” Said Timotheus Höttges, CEO of Deutsche Telekom AG, “We want to work together to make tangible result and strengthen our partnership also with closer technical cooperation.”
Meanwhile, in February, SK Telecom and Deutsche Telekom entered into a Memorandum of Understanding (MOU) at the Mobile World Congress Barcelona 2019 to accelerate the strategic partnership between the two companies. Since then, they have been actively seeking technological partnership opportunities while evaluating diverse options to optimize their partnership, including joint participation in development, marketing, investment, and the establishment of a joint venture entity.