[MWC On-site] SKT Takes a Step Closer to Global AI Companies... Forming a 1.3 Billion Alliance

Official Launch of GATT... Joint Venture to be Established
AI Language Model, Personal Assistant Service Development
"Collaboration in AI Field Will Be a Game Changer"

SK Telecom has laid the groundwork for securing digital leadership and becoming a global company by forming an artificial intelligence (AI) alliance with overseas telecom operators. The company expressed its ambition to expand the alliance to collaborate with over 100 companies to develop AI services.

On the 26th (local time), SKT decided to accelerate AI technology development by establishing a joint venture with four leading telecom operators from Europe, the Middle East, and Asia, including Deutsche Telekom.

Yu Young-sang, CEO of SK Telecom, is speaking at a CEO press briefing held on the 26th (local time) at the Fira Gran Via exhibition center in Barcelona, Spain, where Mobile World Congress (MWC) 2024 is taking place. Photo by Joint Press Corps

AI Development Joint Venture... "Will Be a Game Changer"

SK Group Chairman Chey Tae-won and SKT CEO Yoo Young-sang officially launched the 'Global Telco AI Alliance (GTAA)' during the MWC 2024 event in Spain, signing a joint venture agreement with the CEOs of Germany's Deutsche Telekom, the United Arab Emirates' e& Group, Singapore's Singtel Group, and SoftBank. The joint venture will focus on the joint development of telecom-specialized AI large language models (LLMs) and business cooperation. Each company has agreed to make significant investments in the joint venture and has reached a consensus on the business plan.

At a press conference held that day, CEO Yoo said, "We are now in an era where LLMs specialized in a single industry lead changes in that field," adding, "Global telecom operators aim to become game changers driving market changes through cooperation in AI fields such as telco LLMs."

The combined subscriber base of the five founding members of GTAA reaches 1.3 billion. By developing telecom-specialized LLMs based on abundant data, they can efficiently respond to customers, provide customized AI services, and even utilize AI personal assistants. Regarding AI personal assistants, CEO Yoo predicted, "A huge market will be formed, and new game changers will emerge."

"Global Aspiration... Made Possible by AI"

With the launch of GTAA, partnering with heavyweight telecom operators, CEO Yoo took a step closer to his goal of becoming a 'global AI company.' He began by saying, "There has always been a global aspiration." He continued, "While we are active internationally in manufacturing, I have often wondered why a global leader has not emerged in the service sector," explaining, "To become a global company, we needed to form an alliance, and AI provided the momentum to make that possible."

Chairman Chey Tae-won of SK (center), SKT President Yoo Young-sang (second from right), and attendees held the inaugural general meeting and took a commemorative photo at the Fira Gran Via exhibition center in Barcelona, Spain, on the 26th (local time), the opening day of the world's largest mobile communications exhibition, Mobile World Congress (MWC) 2024.
The theme of MWC 2024 is "Future First," which signifies that various technologies, industries, groups, and countries must unite and prepare for the future to come. Photo by Joint Press Corps

CEO Yoo views the AI transition as an opportunity not only for global big tech companies but also for telecom operators. He emphasized, "If we solidify the alliance, we can maintain AI leadership." He also stated, "We aim to attract more telecom operators to GTAA," adding, "From the perspective of securing global coverage, we have set a target in the triple digits." Assuming one telecom operator per country participates in GTAA, they hope to have over 100 member companies. On the same day, he also met with Samsung Electronics MX Division President Roh Tae-moon at the MWC exhibition and proposed cooperation.

Development of Telecom-Specialized LLMs and AI Personal Assistants

He emphasized the importance of vertical LLMs with expertise in specific industry sectors. CEO Yoo said, "Every industry will have specialized vertical LLMs, and in the long term, there will be a significant gap between operators who develop vertical LLMs and those who do not." Additionally, SKT plans to start an AI data center business domestically within this year and enhance the AI personal assistant service 'A.Dot.' For online video services (OTT) like Netflix and TVING, which are engaged in subscriber wars, the application of AI personal assistant services is expected to help maintain a single platform for a long time and increase its value the more it is used.

SKT is also aiming to reduce operating costs through its AI Contact Center (AICC). Kim Kyung-duk, head of SKT's Enterprise Business Division, said, "In the case of Deutsche Telekom, AICC has created new business opportunities and reduced costs," adding, "I understand that call center costs, which used to be 3 trillion won annually, have been reduced by 1.5 trillion won after applying AI."