SK Telecom beyond telecommunication company

1. SK Telecom expand online business through collaboration with AMAZON

SK Telecom, led by CEO Park Jung-ho, announced on Nov. 16 that it will promote 'cooperation in e-commerce business' with Amazon, the world's largest e-commerce company.

Through this cooperation, 11 Street, a commerce subsidiary of SKT, will also be able to purchase Amazon's products. 11 Street and Amazon plan to reveal details of the service as soon as they are ready to launch.

SK Telecom also signed an agreement with Amazon to participate in equity investment in order to innovate its commerce business based on growth on 11 Street. Amazon can be granted the right to buy new shares if certain conditions are met depending on its business performance in the Korean market, including the IPO on 11 Street.

In addition, SK Telecom is planning to grow 11 Street into a 'global distribution hub platform'. 11 Street, along with SKT, plans to expand cooperation with global e-commerce companies to provide better shopping services to customers and to continue making efforts to pave the way for local sellers to make inroads into overseas markets.

"We are pleased that our global hyper-cooperation with Amazon has paid off," SK Telecom said. "We will continue to create synergy in various ICT areas, including Amazon and commerce, and make efforts to revitalize the entire industry."

"11 Street shares our 'customer first' principle and is Korea's leading e-commerce operator," Amazon said. "We look forward to providing a differentiated experience to shop Amazon products through this cooperation."

"We expect to provide unique purchasing experience to domestic users with Amazon," 11 Street said. "We will make efforts to provide differentiated benefits to users as soon as possible through smooth cooperation with Amazon."

SK Telecom is expected to gain three main competitive advantages in cooperation with Amazon.

First, it is expected that the service will be directly purchased through 11th Street. A local logistics center on 11th Street keeps Amazon's popular products in advance and delivers them as soon as orders come in. There was an advantage of buying a variety of products at a low price when purchasing overseas goods directly from Amazon, but there were also inconveniences such as slow delivery, complicated exchange and refund procedures, theft in transit, and controversy over damaged imitations. Now, 11th Street will allow you to enjoy Amazon shopping without such concerns.

Secondly, it can also be expected that 11th Street will strengthen its own delivery system by combining Amazon's full-film experience (a logistics process such as product storage, product selection, packaging, delivery, and processing), which is considered a role model for the e-commerce industry.

Finally, SK Telecom offers artificial intelligence speaker (NUGU) and online content (wavve) services. In this context, SK Telecom expects that there will be a synergy effect as there are similar business areas such as Amazon's artificial intelligence speaker (Amazon Echo) and online content business (Amazon Prime).

 

2. SK Telecom develop AI chip as a mobile carrier

SK Telecom Co., South Korea's leading wireless carrier, unveiled Wednesday a new artificial intelligence (AI) semiconductor for data center operations, expanding its business to the semiconductor market.

At the event, SKT unveiled its AI semiconductor called 'SAPEON X220', which can be applied immediately to data centers. Through the launch of AI semiconductors, SKT has made its debut in future semiconductor markets centered on global big-tech companies such as NVIDIA, Intel, and Google. The new SAPEON X220 is the first AI chip developed by the mobile carrier and also the country's first AI chip for data centers.

'SAPEON X220' has better performance and lower price than existing GPU (Graphics Processing Unit). Because 'SAPEON X220' is 1.5 times faster than GPU, data processing capacity increases by 1.5 times when applied to data centers. At the same time, the price is about half the price of GPU and electricity consumption is only 80 percent.

Based on its capabilities in designing core of AI semiconductors that were secured through preemptive research and development, SKT is planning to enter the global AI semiconductor market in earnest by cooperating with the government and large and small businesses related to semiconductors. The carrier's new chip will be manufactured by Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest foundry firm, according to an industry official.

Also, in relation to semiconductor design, server system production and cloud software development, it will cooperate with small and medium semiconductor companies in an effort to contribute to vitalizing the domestic semiconductor ecosystem

The carrier added that it aims to use the chips next year for its own AI services, such as its AI assistant NUGU, and that it is closely working with its affiliate and memory chip giant SK hynix Inc. in memory-related technology.

"Korea's first AI semiconductor launch for data centers was achieved through SKT's technical skills, service capabilities, active support from the government, and cooperation with small and medium-sized companies. In the future, AI semiconductors and technologies such as AI, 5G, and cloud will be combined to let SKT grow into a top global AI company," said Kim Yoon, CTO of SK Telecom.

 

3. SK Telecom is trying to connect society with mobility as a service

SK Telecom is innovating beyond telecommunication company into a company that connects all things and people with ICT technology.

SK Telecom Co., South Korea's largest mobile carrier, its shareholders approved its move to spin off its mobility business as it seeks to strengthen its focus in the connected mobility sector.

The move came a month after the carrier announced the spinoff plan as it will partner with U.S. ride-hailing company Uber Technologies Inc. to pursue a new taxi-hailing business in South Korea.

SK Telecom's mobility business is currently focused around its popular map application T map, which has around 12.5 million monthly active users. Based on the app, SK Telecom also provides navigation, taxi-hailing and parking services.

In particular, the company plans to launch an “all-in-one Maas service (Mobility as a Service)” as a subscription model that combines rental cars, car sharing, taxis, short-distance transportation (electric kickboards, bicycles, etc.) and proxy driving and parking to provide discounts.

In addition, T-Map Mobility aims to mount 'T-Map' platforms on all vehicles in Korea. It can be mounted inside finished cars or can be used in various forms such as Smartphone navigation. Based on this, it is planning to develop platform-based businesses such as advertising and data.

SK Telecom CEO Park Jung-ho said the new company will pursue new mobility businesses.

"Including a flying car that can connect the wider Seoul region within 30 minutes, we will provide a mobility life platform that encompasses parking services to public transportation," Park said in a statement.

According to SK Telecom, Uber and T Map Mobility will create a joint venture by the first half of next year.

Uber plans to invest over US$100 million into the joint venture, which will focus on ride-hailing services, and another $50 million into SK Telecom's new spinoff.

SK Telecom said it expects T Map Mobility, valued currently at around 1 trillion won ($905.1 million), to be valued at 4.5 trillion won by 2025.