SK Telecom: 5G subs heavy media users
April 1, 2020
As it approaches the first anniversary of launching what it says was the world’s first 5G service on April 3rd, 2019, Korean telco SK Telecom has revealed a number of 5G milestones achieved over the past year, which suggest certain users are using media services much more actively than LTE subscribers.
According to the Korean Ministry of Science and ICT released in January 2020, SK Telecom has established itself as the leader in the 5G market with around 2.22 million subscribers and 44.7 per cent market share.
SK Telecom has increased customers’ 5G experience and acceptance by creating around 70 5G Clusters in key commercial districts and densely populated areas throughout the nation. To date, around 1 million customers visited 5G Clusters to experience differentiated 5G services including ‘Jump AR Zoo’ and ‘5G LoL Park.’
According to SK Telecom’s analysis on 5G subscribers, people in their 30s and 40s are taking up 53 per cent of the company’s total 5G subscriber base, which is significantly higher than the proportion of people in their 30s and 40s in total LTE subscriber base, which currently stands at 32 per cent.
The total amount of data consumption of SK Telecom’s 5G subscribers reached 62,000 TB on average per month over the past three months (Dec. 2019 ~ Feb. 2020). During the same period, the average monthly data usage of subscribers who switched devices from LTE to 5G has increased about twofold from 14.5 GB (LTE) to 28.5 GB (5G) per person.
SK Telecom’s 5G subscribers are found to be using media services, which generally require greater speeds and bandwidths, much more actively than LTE subscribers. As of February 2020, 5G subscribers are using seven times more VR services, 3.6 times more video steaming services and 2.7 times more game apps than LTE subscribers.
Moreover, armed with its strong capabilities in 5G, SK Telecom has successfully expanded into new business areas. The company is cooperating with Microsoft and Amazon Web Services in the area of cloud, and has ventured into the U.S. next-generation broadcasting (ATSC 3.0) market with Sinclair Broadcast Group.
SK Telecom also shared its experience and knowhow in 5G with other mobile operators across the globe including Deutsche Telekom, Taiwan Mobile and IT&E.
Going forward, SK Telecom aims to earn the title of the world’s best 5G service provider through hyper-collaboration with strong global companies. At CES 2020, SK Telecom’s President and CEO Park Jung-ho suggested “Hyper-Collaboration” with diverse Korean ICT companies to achieve innovations in areas including artificial intelligence.
For consumers, SK Telecom will focus on providing differentiated 5G services that innovate user experience through borderless collaboration with diverse ICT companies including cloud service providers, device manufacturers and telecommunications companies.
SK Telecom will continue to work closely with Microsoft to prepare mobile cloud streaming games and will also open ‘Jump Studio,’ a mixed-reality content production facility.
SK Telecom and Microsoft are currently providing 92 different games through Project xCloud. Cloud gaming service is being highlighted as the ‘game changer’ that will shift the paradigm in the gaming industry by enabling users to play high quality, premium games anywhere, anytime by accessing the cloud server.
Jump Studio will provide solutions that enable the creation of 3D content such as holograms by combining the technological strengths of augmented and virtual reality technologies. SK Telecom expects Jump Studio to accelerate the popularisation of realistic media by significantly reducing time and cost for content creation.
SK Telecom plans to release mobile devices applied with global leading quantum cryptography technologies and provide advanced security solutions to 5G users.
In B2B, SK Telecom announced its vision of expanding the enterprise business in full scale by marking 2020 as the first year of its B2B business. To this end, the company will work closely with companies of diverse industries to serve as a catalyst for industrial innovations in Korea.
SK Telecom plans to build 5G MEC (Mobile Edge Computing) Centers in 12 different locations across Korea to lead a cloud-driven industrial revolution. To this end, the company is preparing to launch nationwide 5G edge cloud service by joining hands with global leading cloud companies such as Amazon Web Services and Microsoft.
In 2020, SK Telecom will bring the total number of its 5G Clusters to 240 and expand 5G coverage to neighbourhoods (‘dong’) of 85 cities nationwide by working closely with telecommunications equipment manufacturers.
The company will also secure indoor coverage for a total of 2,000 buildings, including not just airports, department stores and large shopping malls but also small-to medium-sized buildings, by applying its sophisticated 5G in-building solutions.
“SK Telecom was able to secure new business opportunities ahead of others by achieving the world’s first 5G commercialisation,” said Ryu Young-sang, Vice President and Head of MNO Business of SK Telecom. “We are confident that the 5G business models to be launched this year will drive the company’s growth over the next decade.”