SK Telecom, HFR, and NTELS Signed MOU
SKT-HFR-NTELS signed MOU for business cooperation
SKT is planning to take the lead in the global 5G MEC business in cooperation with the leading domestic 5G network equipment companies
- Targeting the global private 5G network B2B market worth $4.6 billion with domestic 5G MEC technology
- Providing customized 5G MEC solution to overseas companies and public institutions that have private 5G network
- The value of 5G MEC is increasing with the emergence of new ICT industries such as smart factories, robots, and drones
SK Telecom signed an MOU for business cooperation with HFR and NTELS, the leading 5G network equipment companies in Korea, to take the lead in the global 5G MEC (mobile edge computing) business.
5G MEC is a technology that provides ultra-low latency communication by installing a small separate data center in the base station closest to the service user. As major countries around the world begin commercializing private 5G network, they are paying attention to 5G MEC, which improves the connectivity and security of the private 5G network.
Currently, manufacturing companies and public institutions in the United States, Japan, and Germany are building private 5G network in limited areas to advance the new ICT industry such as smart factories, robots, and drones.
The market size of global private 5G network is expected to reach approximately $4.6 billion* by 2025 (*Source: 2020 report from Omdia, a market research firm). Recently, the global network equipment industry analyzed that the potential demand for private 5G network implementation worldwide would reach 14.5 million.
The three companies, SKT, HFR, and NTELS, are planning to start a B2B business that provides customized 5G MEC solutions to overseas companies and public institutions that plan to operate or implement their own private 5G network.
For example, when a manufacturing company subscribed a private 5G network to build a smart factory, it might have difficulties in establishing a communication infrastructure. In this case, we can design and build 5G MEC equipment and software that fit the factory system. We can provide a software maintenance service in the future as well.
Through our ‘All-In-One Edge’ solution that combines remote network interworking and edge computing functions, we support companies with no experience in network construction and operation to use the private 5G network and 5G MEC services more easily.
SKT will develop new 5G MEC products and manage the overall business. HFR will implement a global network interface and work with its overseas sales channels, while NTELS will be in charge of 5G MEC platform development, service maintenance, and customer support. The three companies plan to maximize global business synergy through their respective 5G MEC technology assets.
SKT is expanding cooperation with many domestic and foreign companies based on the 5G MEC platform it already developed. In Korea, it is implementing a hybrid MEC cloud platform with companies such as Amazon Web Services (AWS) and Microsoft. In addition, while operating the ‘Telecom Edge Cloud TF’ with 9 global telecommunication companies such as Deutsche Telekom, Singtel, and NTT DoCoMo, it also leads the 5G MEC cooperation project within the Bridge Alliance, the largest telecommunication company alliance in Asia, the Middle East, and Africa.
HFR provides private 5G network equipment to customers around the world. It also has a wide range of overseas sales channels by supplying 5G network equipment to companies like Verizon, AT&T, and NTT DoCoMo through its branches located in the United States and Japan.
NTELS has been recognized for its advanced technology by supplying 5G solutions to telecommunication companies in foreign countries such as AT&T, Celcom, and M1. Recently, it developed 5G solutions for smart factories and smart buildings and provided them to domestic and foreign customers.
A manager of SKT said, “5G MEC, which we developed in advance before the widespread of 5G technology, is drawing attention as an essential technology for the private 5G network. We will work with leading domestic 5G telecommunication equipment companies to dominate the global 5G MEC market”.
A CTO of SKT said, “We expect the new ICT industry such as smart factories and robots to grow rapidly through 5G MEC. We are planning to provide 5G MEC solutions with industry-specialized services to various companies and public institutions around the world”.
CEO of HFR said, “5G connectivity and MEC computing technology will provide new opportunities for many companies worldwide. We will propose new business models focusing on major advanced countries and establish a demonstration lab”.
CEO of NTELS said, “5G MEC is emerging as a core technology for global companies’ digital transformation strategy. We will expand our competitiveness in the global market by developing 5G MEC products with SKT and HFR”.