Telecom Company Proposes Metaverse as New Keyword
Leading with 5G, AI and Digital Infrastructure
Virtual Currency and Cloud Connected, New Market Anticipated
[Asia Economy Reporter Seulgina Jo] This time, it is the ‘Metaverse (3D virtual world)’. Park Jung-ho, CEO of SK Telecom, which has officially announced its corporate split, presented the metaverse as the new keyword for the surviving telecommunications business company. This is based on the judgment that the so-called ‘Metaverse Economy,’ where people enjoy and consume in the virtual world after the COVID-19 pandemic, has become an unstoppable trend.
◇"We will grow SKT into a metaverse company"
According to industry sources on the 20th, after revealing SK Telecom’s corporate split scenario recently, CEO Park told employees, "We will grow the surviving company into a metaverse company based on artificial intelligence (AI) and digital infrastructure." Following last year’s directive to apply AI and cloud computing to all SK Telecom operations, this time he is focusing on the growth of the metaverse market, leveraging the ultra-fast 5G communication network as a weapon.
CEO Park recently assessed that due to the COVID-19 pandemic, restrictions on international travel and various gatherings have accelerated the evolution of all areas of daily life?such as gaming, hobbies, and work?into the metaverse by more than ten years. The term metaverse, first appearing in Neal Stephenson’s 1992 novel, refers to a 3D virtual world where the boundaries between reality and virtuality disappear.
In particular, it is expected that new markets will be formed as new technologies such as virtual currency, Internet of Things (IoT), cloud, mobility, and smart health connect within the metaverse. In short, the metaverse has become the ‘next-generation computing platform’ following mobile.
Currently, CEO Park believes that SK Telecom, which holds 5G leadership, has competitiveness in the metaverse platform war that requires three elements: massive data operation, real-time data transmission, and virtual reality technology. Unless the metaverse market is secured, SK Telecom’s declared leap to become a comprehensive digital ICT platform company will inevitably face setbacks. After the personnel split, the surviving SK Telecom company will play a role in expanding AI and digital new businesses based on its No. 1 5G leadership.
An SK Telecom official said, "The emphasis on AI and cloud computing so far is ultimately connected," adding, "With the economic value of the metaverse confirmed through the New York Stock Exchange listing of the U.S. gaming platform Roblox, the market has become one that cannot be lost in both B2B (business-to-business) and B2C (business-to-consumer) sectors."
◇"Metaverse will bring revolutionary change"
Last month, the entrance ceremony of Soonchunhyang University conducted by SK Telecom attracted attention as the world’s first metaverse entrance ceremony, where freshmen attended as avatars in a VR-implemented campus. This month, SK Telecom’s new employee recruitment briefing was also held in the metaverse, solidifying its image as a ‘metaverse leading company.’ SK Telecom plans to significantly upgrade VR-based social communication services such as ‘Virtual Meetup,’ which allows up to 100 avatars to connect simultaneously in a virtual space, by this summer.
According to market research firm Strategy Analytics (SA), the metaverse market is expected to grow rapidly from this year, with related sales estimated to reach $280 billion (approximately 315 trillion KRW) by 2025. PwC forecasts that by 2030, the augmented reality (AR) market will grow to $1.0924 trillion, and the virtual reality (VR) market to $450.5 billion.
In a recent report, the Software Policy Research Institute predicted, "Considering the evolution of enhanced convenience, interaction, screen and spatial scalability, as well as the characteristics of general-purpose technology and economic value, the metaverse will bring revolutionary changes following the internet."
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