The Three Major Telecom Companies Clash Over Capturing the Future Growth Market of 'Connected Cars'

Competition in AI-Based Package Services
Such as Voice Content Control and Drive

KT models promoting the infotainment platform service. Photo by KT

[Asia Economy Reporter Cha Min-young] As the era of connected cars arrives, transcending the simple equation of 'car = means of transportation,' the competition among the three major telecom companies to secure future growth engines is intensifying. In line with the trend of expanding the core of connected cars from 'safety' to 'infotainment (information + entertainment)' functions, telecom companies are also competing with AI-based in-vehicle infotainment package services.

KT collaborates with Ford Korea... from 'Connected Cars' to 'Infotainment'

According to the telecommunications industry on the 22nd, KT is cooperating with Ford Sales and Service Korea (Ford Korea) to provide premium infotainment platform services in Ford and Lincoln vehicles scheduled for production in 2023. While KT has continued connected car cooperation with Ford Korea, it plans to expand the scope of collaboration to the infotainment sector.

KT provides connected car services to 14 brands targeting domestic and international automakers. KT's connected car service subscribers exceed 3.2 million. KT offers specialized services such as navigation, voice recognition solutions, and geographic information systems (GIS) in some manufacturers' vehicles. Users can also access music, podcasts, radio, games, religious content, Wikipedia, and English word translation.

Given the driving environment where hands are not free to move, AI services are also evolving. KT has enabled content control via voice through 'Giga Genie.' KT's voice recognition service applies its proprietary AISE technology developed by the Convergence Technology Institute. KT explained that the AISE solution has increased voice recognition accuracy to an industry-leading 97.5% through noise cancellation and echo cancellation.

SKT with Volvo, LG Uplus with Hyundai and Kia collaborate

TMAP infotainment service screen applied to Volvo XC60. Photo by TMAP Mobility

SK Telecom is also accelerating the development of in-vehicle infotainment services centered on its subsidiary T map Mobility. In September last year, it installed infotainment services in the new Volvo 'XC60.' This is a package product including the AI platform 'NUGU' based 'NUGU Auto,' T map, and the music platform 'FLO.' However, there are limitations as SK Telecom's business units, including T map Mobility and Dreamus Company (operator of FLO), were split under SK Square, losing a central development hub.

LG Uplus has succeeded in establishing a cooperative relationship with Hyundai and Kia, which hold an 80% domestic market share. From January next year, LG Uplus will exclusively provide wireless communication lines to Genesis, Hyundai, and Kia vehicles sold in the domestic market under Hyundai Motor Group brands. LG Uplus has provided wireless communication lines to Hyundai Motor Group since 2003 and has offered communication services for some Kia models since 2019. It is also accelerating the development of in-vehicle infotainment services. Its main focus includes AI voice recognition-based Uplus Drive service and its specialized content such as education (Idleulnara), sports platform (Spoky), and entertainment (Idol Plus).

Although the history of connected car services is not long, the three major telecom companies are actively moving. This is because the internet, mobile devices, and automobiles are connected, creating a large-scale market encompassing three industries. The number of wireless communication service vehicle control subscriptions, where automakers rent communication networks, has also surged. According to the Ministry of Science and ICT, the number of lines reached 6,241,320 as of the end of September, a 3.5-fold increase compared to 1,791,908 lines at the end of 2018, five years ago.

In the telecommunications industry, there is an observation that infotainment products in package form are gaining popularity. An industry insider said, "Since the core of connected cars is safety, in most cases, one telecom company partners with one car brand," adding, "How comprehensively differentiated infotainment services can be provided will be an important competitive point in the future."