SKT, KT, LG U+ to invest US$ 6 billion in 5G, IoT

2015_02_korean telecomsThree Korean mobile carriers will make a full-scale investment this year in facilities for next-generation technologies for 5G, the Internet of Things (IoT), and GiGA Internet. According to industry sources on Feb. 5, three carriers announced that they will make a nearly 6.5 trillion won (US$6.0 billion) investment in facilities this year during their briefings on results for Q4 2014. SK Telecom is planning to do 2 trillion won (US$1.8 billion), KT 2.7 trillion won (US$2.5 billion), and LG U+ 1.7 trillion won (US$1.5 billion). Although KT’s investment in 2015 is expected to go up 7 percent from the previous year, the number for SKT and LG U+ is a year-on-year decline of 6.8 percent and 23 percent, respectively.

The total investments by the three carriers are projected to decrease this year, as they were around 7 trillion won in the past. The phenomenon is due to the fact that they do not heavily invest in LTE facilities anymore, following a rapid increase in investment over the last four years. In other words, competition between mobile carriers to build LTE networks nationwide, which started in 2011, is coming to an end.

For full article, see Business Korea.

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