Deutsche Telekom and SK Telecom (SKT) agreed a deal to invest in start-ups affiliated with the other, as the companies bid to enhance their global prospects and competitiveness in 5G.
The commitments, described by the pair as a cross-investment agreement, are an extension to an existing relationship between the two unveiled at Mobile World Congress 2016. The partners have since taken part in a number of joint trials of 5G and other next generation technology.
Under the deal Deutsche Telekom will make an investment in ID Quantique, a Switzerland-based strategic partner of SKT. The start-up is focused on the development of quantum cryptography communication technology, an innovation designed to increase the security of telecoms services.
ID Quantique’s applications are already being tested in trial networks deployed by both Deutsche Telekom and SKT.
For its part of the deal, SKT will invest the same, undisclosed, sum in Deutsche Telekom edge computing subsidiary MobiledgeX.
In a statement, Deutsche Telekom said the two had expanded the scope of the partnership to gain “leadership in the upcoming era of 5G by offering specialised 5G services with ultra-low latency in areas like telemedicine as well as AR and VR, while addressing potential security threats.”
Park Jung-ho, president and CEO of SKT (pictured, right), said the collaboration between the two operators would “serve as a valuable opportunity for us to further solidify our 5G leadership in the global market and drive new growth.”
Deutsche Telekom CEO Timotheus Hoettges (pictured, left) added the tie-up would help the company bring 5G and other new services to customers.Subscribe to our daily newsletter