Deutsche Telekom of Germany and SK Telecom of Korea announced their cross investment agreement to strengthen their 5G business.
Deutsche Telekom CEO Tim Hottges and Park Jung-ho, president and CEO of SK Telecom, announced the cooperation on October 22 in Seoul, South Korea.
SK Telecom will invest in MobiledgeX, an edge computing company founded by Deutsche Telekom and headquartered in Menlo Park, California, focused on delivering developer-facing edge computing services.
Deutsche Telekom will invest the same amount to ID Quantique (IDQ), SK Telecom’s partner in quantum cryptography communication technology based in Switzerland.
SK Telecom and Deutsche Telekom did not reveal the size of the investment in these two companies.
SK Telecom and Deutsche Telekom plan to share their technologies and know-how. The two companies made their cross-investment decision to gain leadership in 5G by offering specialized 5G services with ultra-low latency in areas like telemedicine as well as AR and VR.
Deutsche Telekom and SK Telecom are reviewing the idea of utilizing mobile edge computing technologies to reduce data transfer time. With mobile edge computing, companies can conduct on-site monitoring of disaster-affected areas and respond faster to traffic accidents.
Deutsche Telekom is reviewing the idea of adopting quantum cryptography communication systems. SK Telecom and Deutsche Telekom are currently in the process of qualifying quantum cryptography technologies on their respective trial networks.