Collaboration including SK Telecom's ThingPlug-based IoT platform

Following Iran, SK Telecom is actively expanding into the global market in Indonesia by leveraging its IoT networks and solutions.

SK Telecom (CEO and President Jang Dong-hyun) announced on the 12th that it has signed a Memorandum of Understanding (MoU) with Telkom, Indonesia's largest state-owned telecommunications company, to strengthen strategic cooperation in IoT-based businesses and new growth business areas.

Telkom Indonesia is the number one wired and wireless operator in Indonesia with 2015 revenue of 7.4 trillion and a market capitalization of 32 trillion, and is actively pursuing expansion into new businesses such as B2B business.

Through this agreement, the two companies plan to cooperate closely in various fields, including SK Telecom’s ThingPlug-based IoT platform, LPWA (Low Power Wide Area)-based IoT network, media solution 'Cloud Streaming', and SK Telecom’s entry into the lifewear device 'UO brand'.

To this end, on the 12th (Thu) local time, the two parties held an MoU signing ceremony at Telkom’s headquarters in Jakarta, Indonesia, attended by SK Telecom’s Head of Global Business Division Lee Eung-sang and Telkom’s CISO Indra Uttoyo, and agreed to discuss future business cooperation plans in Indonesia.

This collaboration stems from Telkom's need to discover new growth engines, IoT-based businesses, and...This was made possible as it aligned with the interests of SK Telecom, which is continuously pursuing expansion into overseas markets, including e-ware devices.

With the Indonesian government actively supporting the construction of IoT-based smart cities and the expansion of ICT infrastructure ahead of the 2018 Asian Games, this agreement is expected to serve as an opportunity for both companies to drive new growth in new industrial sectors.

Both parties agreed to create new business opportunities in new growth sectors, such as smart cities and IoT convergence services, through SK Telecom's IoT platform 'ThingPlug' and LPWA-based IoT networks. To pursue the IoT business, the two companies are discussing the establishment of a joint venture in Jakarta, Indonesia, within two years.

With SK Telecom recently obtaining international standard certification for its IoT platform 'ThingPlug,' it is expected that the two companies will be able to develop a wider variety of IoT convergence services.

In addition, the two companies plan to actively cooperate in developing cloud-based TV services for Telkom's subscribers through 'Cloud Streaming,' a media solution owned by SK Telecom's subsidiary, ENTRIX. Media operators, such as cable TV and IPTV providers, who adopt 'Cloud Streaming' can implement high-performance, high-quality services regardless of set-top box performance, and can enhance customer convenience by reducing content transmission time through data processing on cloud servers.

Finally, the two companies also plan to jointly cooperate on the entry of SK Telecom's lifewear device, the 'UO brand,' into Indonesia. To this end, PINS, Telkom’s distribution subsidiary, is scheduled to handle local sales of lifewear devices such as the UO Smart Beam Laser, UO Smart Beam 2, and UO Linkage.

Lee Eung-sang, Head of Global Business at SK Telecom, stated, “I am pleased that this agreement with Telkom of Indonesia has created an opportunity for a win-win situation in various business fields, including IoT convergence services, smart cities, and media,” adding, “We will strive to make a leap forward together in Indonesia and across Southeast Asia through continuous cooperation between the two companies.”