Claudia Nemat, Member of the Board of Management for Technology and Innovation at Deutsche Telekom, at the presentation of the LTE/5G repeater jointly branded by SKT and DT. (Picture: SK Telecom)

Deutsche Telekom and the largest South Korean mobile phone provider SK Telecom have founded a joint venture to develop 5G technology. The focus is on in-house solutions, such as a 4G/5G router – the partners see a gap in the market here.

The cooperation between SK Telecom (SKT) and Deutsche Telekom (DT), which has become increasingly intensive over the past two and a half years, is reaching a new level. Now the two partners want to set up a joint venture to develop solutions for 5G coverage in buildings. The main location will be in Germany, with each partner holding 50 percent of the joint venture.

First tests successful

Since February, Deutsche Telekom had been looking for testers for 5G/LTE dual mode repeaters developed by SK Telecom. With the launch of its own 5G network in August, testing began at customers in Berlin, Hamburg, Bonn, Cologne, Munich, Darmstadt, Frankfurt and Leipzig. The aim was to test the practical suitability and to identify any need for optimization. According to the company, the tests showed that both voice and data communication could be significantly improved.

One problem with 5G: the higher frequencies, such as the 3.6 GHz band auctioned last year, penetrate walls and other obstacles more poorly than lower frequencies. This is why in-house use in particular presents the technology with special challenges. One way to improve reception is to use appropriate repeaters. But for 5G, such repeaters are still scarce. Thanks to the combined strengths of SKT and DT, the joint venture could play a pioneering role on the market in the future.

Bild: Deutsche Telekom

Picture: Deutsche Telekom

“The initial feedback from customers on the product test has shown the value of our partnership – for us, but above all for our customers. We will start with the repeater, but with this joint venture we want to achieve much more. We want to create significant innovations for both companies in the coming years”.

Tim Höttges, Chairman of the Board of Management of Deutsche Telekom

 

Further solutions in sight

SKT will contribute the LTE/5G router to the joint venture to be established. The partners announced to complete the further development of the device within this framework. Initially, further solutions for the European market will be developed.

But it should not stop at individual devices; shared services in the 5G ecosystem are also on the agenda. The two telecom giants mention the areas of augmented and virtual reality services, mobile edge computing (MEC) and the app market as possible fields of activity for a medium to long-term cooperation.

The formation of the joint venture is still subject to mandatory regulatory approval, but is expected to be completed before year-end.