SK Telecom and Deutsche Telekom announced that they had entered into an agreement to establish a 5G technology joint venture. They will each hold 50 percent of the joint venture, and each will name one representative to lead the new entity. The joint venture will be headquartered in Germany.   SK Telecom And Deutsche Telekom 5G Joint Venture

Through the joint venture, the two companies will develop advanced 5G in-building solutions and develop market opportunities, starting with Europe. In the mid-to-long term, they will also evaluate opportunities to cooperate in the areas of augmented reality and virtual reality services, mobile edge computing (MEC), and the app market.

According to Markets and Markets, the global market for in-building distributed antenna systems (DAS) is expected to be worth USD 10.33 billion by 2023, growing at a CAGR of 10.1% between 2018 and 2023. Since there are not yet strong players dominating the market for 5G repeaters, the joint venture, which will combine the strengths of SKT and DT, will be well-positioned to pioneer the market.

SKT and DT’s Joint Venture: Enhancing 5G/LTE In-Building Coverage through Dual-Mode Repeaters

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, i.e. Berlin, Hamburg, Bonn, Cologne, Munich, Darmstadt, Frankfurt, and Leipzig, from August to October 2020. Customer trial results have shown that users experienced significant improvements in 5G and LTE for both voice and data experiences with this test device. The joint venture is scheduled to complete the development of an advanced 5G/LTE dual-mode repeater.

SK Telecom And Deutsche Telekom 5G Joint Venture

‘Together with SKT, we are able to develop new and innovative products that enhance the customer experience. The first feedback from the repeat 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,’ says Tim Höttges, CEO of Deutsche Telekom.

‘The partnership between SKT and Deutsche Telekom is very meaningful at a time when the world is heavily affected by the COVID-19 pandemic,’ said 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.’

The creation of the joint venture is still subject to mandatory regulatory approval but is expected to close before the end of the year. SK Telecom And Deutsche Telekom 5G Joint Venture