SK Telecom, South Korea's key mobile carrier, announced on August 22 that it has signed a business cooperation MOU with South Korea's 5G telecommunication equipment companies, HFR and NTELS.
The three companies are planning to launch a B2B business that provides customized ‘5G Mobile Edge Computing (MEC) solutions’ to overseas companies and public institutions that operate or plan to introduce 5G networks.
5G MEC is a technology that provides ultra-low latency communication by separately placing a small data center in the base station closest to the service user. As major countries around the world begin to commercialize 5G private networks, 5G MEC, which improves connectivity and security of 5G dedicated networks, is attracting attention.
Currently, manufacturing companies and public institutions in the United States, Japan, and Germany are upgrading the new ICT industry, such as smart factories, robots, and drones, by building exclusive 5G networks in limited areas.
Omdia, a market research firm, predicted that the global 5G dedicated network market will reach about $4.6 billion by 2025.
Recently, in the global telecommunication equipment industry, an analysis has been made that the potential demand for 5G dedicated networks worldwide will reach about 14.5 million.
For example, if a manufacturing company that is allocated a 5G dedicated network frequency to build a smart factory is having difficulties in establishing a communication infrastructure, SK Telecom and the two companies will build 5G MEC equipment and software that fits the factory system and provide future maintenance services.
SK Telecom provides an 'All-In-One Edge' solution that combines remote network interworking and edge computing functions, allowing companies with no experience in network construction and operation to easily use 5G dedicated networks and 5G MEC services.
SK Telecom will develop new 5G MEC products and oversee the business. HFR will establish a global network linkage function and operate overseas sales channels, while Ntels will be in charge of 5G MEC platform development, service maintenance and customer support.
“We expect that the new ICT industry such as smart factories and robots will grow rapidly based on 5G MEC," said Kim Yoon, CTO of SK Telecom. “We plan to provide 5G MEC solutions with industry-specialized services to various companies and public institutions around the world.”
