Connected Vehicle

Korean telcos collaborating with automakers to work on connected cars

The world is witnessing technological advancement at a huge pace, the evolving technologies are engendering new industries and forcing different players to come together to become part of new ecosystems. The automotive ecosystem, for example, is undergoing a mammoth change, Connected Cars that was only a concept a few years back is the reality of the day. It has caused the confluence of many industries primarily automotive industry, and the telecom industry.

Korean Telco and automakers collaborating to work on connected cars

The Connected cars is on its way to becoming a new revenue stream for telecom companies and development of 5G network infrastructure has accelerated this trend. The telecom companies are developing 5G networks which is crucial for the implementation of connected cars as huge data needs to be transferred at a very high rate. The 5g network also presents vast business opportunities for telecom companies from connected cars such as vehicle-to-vehicle and vehicle-to-infrastructure communication, car infotainment and digital maps.

This trend gets corroborated when we observe Korean market, here the telecom players like KT, SK Telecom and LG Uplus have entered into partnerships with the local as well as global automakers. The Korean Herald has reported that KT is working with Hyundai Motor for the automaker’s connected-car system Blue Link that enables drivers to connect their smartphones or smartwatches to their vehicles via a wireless communications network. The company has also got a partnership with Mercedes-Benz Korea for the carmaker’s new connected service called “Mercedes me connect” to provide network and map technologies.

Similarly, SK Telecom that demonstrated 5G network within a connected car early this year in partnership with BMW Korea and Ericsson. SKT provided a peak rate of 3.6 Gbps data transmission speed for a connected car traveling at 170 kilometers per hour at the BMW Driving Center in Yeonjong Island. The nation’s smallest mobile carrier, LG Uplus, also partnered with Ssangyong Motor and Tech Mahindra, the internet technology unit of Indian automaker Mahindra & Mahindra, to develop connected cars in September last year.

KT has joined the self-driving pilot city in Pangyo, Gyeonggi Province, to build a pilot 5G network this year. The pilot city will become the world’s first residential area for self-driving cars by 2019. SK Telecom also announced last month it would build 5G network infrastructure in K-City, a pilot city for self-driving automobiles.

Recently, Korea Institute for Industrial Economics & Trade had released a report on connected cars. The report had urged the automotive industry in the country to step up its efforts to develop connected car technology and its standardisation in order to not lag behind the global competition in the fast growing industry.

Among the International telecom players that are also very active in this field are working on developing Connected Car products and servicesare Verizon, AT&T, TeliaSonera, Vodafone, Telia.


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