DT, SK Telecom to fund each other's 5G projects

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Deutsche Telekom and SK Telecom are planning to co-invest in each other's next generation technologies ahead of the launch of 5G.

Following today's announcement, SK Telecom will invest in Deutsche Telekom's MobiledgeX, its California-based program aimed at helping developers build edge computing services.

The telcos said edge computing would help reduce data transfer time, as well as enabling the ability to deliver on-site monitoring of disaster stricken areas and traffic accident, for example.

In turn, Deutsche Telekom will spend the same amount in backing SK Telecom's ID Quantique, the Korean operator's Switzerland based quantum cryptography communication technology project.

The agreement builds upon a strategic partnership signed at Mobile World Congress. The telcos said they will continue to share technologies and expertise as they look to offer low-latency specialised services such as telemedicine, AR and VR, as well as building secure networks.

[Read more: European CEOs make latest plea to EU for help making 5G a reality]

Tim Höttges, CEO of Deutsche Telekom, said: “We look forward to intensifying our successful cooperation with SK Telecom. The partnership will help both companies to strengthen our global technology leadership and bring 5G and other innovative services to our customers."

Park Jung-ho, President and Chief Executive Officer of SK Telecom, added: “SK Telecom is pleased to enter into a cross-investment agreement with Deutsche Telekom as it will serve as a valuable opportunity for us to further solidify our 5G leadership in the global market and drive new growth." 

The operators have been among the most active across their respective continents in the research and development of 5G technologies.

Earlier this month, Deutsche Telekom announced it was backing a project to deliver 5G to 99 percent of the German population by 2025 with a €20 billion warchest.