Commercialising 5G with SK Telecom
As one of the first in the world to launch 5G networks for both consumer and enterprise, SK Telecom (SKT) reported 5.48 million 5G subscribers at the end of 2020.
The operator pursued a “5G Cluster” based approach to the development of its network and services. It created high density coverage in specific locations (e.g. stadiums, parks, business districts, factories) and combined it with advanced-technology environments (including AR, VR and AI) to provide distinctive 5G services, highlighting 5G’s benefits over 4G.
What is South Korea’s 5G Plan?
South Korea’s government has been a strong proponent of 5G development since its commercial launch. In 2019, the government committed to investing over KRW 30 trillion (approximately $26 billion) to establish a comprehensive 5G environment by 2022. This initiative, known as the 5G+ Strategy, aims to promote 15 5G-based industries, potentially generating $73 billion in exports and creating 600,000 jobs by 2026. To facilitate this, the government has provided tax benefits, investment opportunities (such as a smart factory fund), removed regulatory barriers, created test-beds for 5G equipment and infrastructure, and spurred initiatives in 5G content creation. Additionally, it has supported SMEs in adopting 5G technologies.
What is SKT 5GX?
SK Telecom (SKT) has adopted a “5G Cluster” approach for its network and service development. This strategy involves creating high-density coverage in specific locations, such as stadiums, parks, business districts, and factories, and integrating them with advanced technology environments, including Augmented Reality (AR), Virtual Reality (VR), and Artificial Intelligence (AI). The goal is to provide unique 5G services that clearly showcase the advantages of 5G over 4G.
An example of SKT’s 5G Cluster is found at Seoul’s League of Legends Park eSports stadium. Here, SKT has installed technology that enables immersive experiences like 360-degree virtual tours, live VR broadcasting of eSports events, and VR replays from game character perspectives. Other notable clusters include the Olympic Park and Yeouido Park.
Furthermore, SKT has enhanced its OTT video service, “Oksusu,” by introducing an “SKT 5GX” section. This section is designed to distribute media content that benefits significantly from 5G technology. It includes three distinct categories: 5G MAX, offering an IMAX-like experience with VR headsets; UHD (Ultra High Definition), featuring 4K or higher resolution with pinch zoom capability; and VR (Virtual Reality)
As one of the first in the world to launch 5G networks for both consumer and enterprise, SK Telecom (SKT) reported 5.48 million 5G subscribers at the end of 2020.
The operator pursued a “5G Cluster” based approach to the development of its network and services. It created high density coverage in specific locations (e.g. stadiums, parks, business districts, factories) and combined it with advanced-technology environments (including AR, VR and AI) to provide distinctive 5G services, highlighting 5G’s benefits over 4G.
Expanding 5G Services for Consumers and Enterprises
From consumer perspective, the operator continues to expand its equipment range and finess its 5G tariff plans to meet consumption patterns, investing further in service elements such as long- and short-form video, AR and VR content and gaming.
Beyond business mobile, SKT’s approach to commercialising 5G in the enterprise segment has been to combine 5G connectivity with other capabilities such as AI, cloud and mobile edge computing to offer enterprise and SMEs cloud communication and SaaS services, machine vision manufacturing, connectivity for IoT monitoring, smart factory solutions (such as device management and data traffic control as well as equipment sensor management), robotic assistance and private 5G customisations.
SKT is also taking steps to collaborate with other telcos in order to make edge a success globally.
This April 2021 Report: SK Telecom’s journey in commercialising 5G examines the market factors that have enabled and constrained SKT’s 5G actions up to now and identifies lessons in the commercialisation of 5G for operators that are on their own 5G journey.
See our in-depth 5G research and our coverage of SKT’s 5G journey so far:
- SK Telecom: Lessons in 5G, AI, and adjacent market growth
- SK Telecom: The road to the world’s first 5G MEC platform
- How mobile operators can build winning 5G business models
- Recovering from COVID: 5G to stimulate growth and drive productivity
- 5G: Bridging hype, reality and future promises
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