Telcos all in to develop next-gen communications technology

[Graphics by Song Ji-yoon and Lee Eun-joo]

South Korea’s three major telecommunication companies are jumping onto the fifth generation (5G) mobile technology bandwagon, which has been in the spotlight with autonomous vehicles on the horizon.

According to information technology (IT) sources on Sunday, the trio – SK telecom Co., KT Corp., and LG Uplus Corp. – are eyeing the autonomous driving market as a new subscription-based business model using 5G. With the government aiming to launch Level 4 autonomous vehicles by 2025, the companies are putting their efforts into demonstration projects.

Telecommunication companies are diving into building business models for commercialization through these demonstrations. LG Uplus announced on Sunday that it signed a memorandum of understanding with autonomous driving startup RideFlux to develop unmanned autonomous driving technologies.

RideFlux develops essential software that serves as autonomous driving’s brain. The company launched Korea’s first autonomous route service in 2021, covering the distance between Jeju Airport and Jeju Jungmun Tourist Complex.

LG Uplus plans to use 5G communication technology throughout the entire driving process in the future Level 4 autonomous driving market, enabling unmanned vehicles to reach their destinations and even park autonomously.

LG Uplus is developing an AI autonomous driving urban environment management service specialized in unmanned autonomous driving based on RideFlux’s extensive autonomous driving data and vehicle-to-everything (V2X) technology.

The company will also apply unmanned autonomous driving technology to special-purpose vehicles in areas such as road cleaning, fine dust control, and disinfection, as well as actively using artificial intelligence (AI) technology in driving solutions. The plan includes providing services that not only adjust cleaning intensity based on real-time road conditions but also prevent accidents by remotely controlling emergency situations.

Telecommunication companies are particularly interested in C-ITS instead of traditional intelligence transportation systems (ITS) because C-ITS is bidirectional. While ITS collects and delivers vehicle operation information to users, the next-generation intelligent transportation system collects information via AI and the Internet of Things (IoT), which opens up more business options.

SK telecom also started collaborating with truck autonomous driving startup Mars Auto in October 2023 to enhance AI-based autonomous driving for large trucks. Mars Auto develops AI-based autonomous driving software for freight transport trucks, and successfully conducted Korea’s first autonomous driving truck test in 2019 to begin commercial freight transportation using autonomous driving trucks in 2023.

SK telecom has gained experience in autonomous driving business by opening a demonstration site for autonomous driving cars in the Sangam-dong area in northwestern Seoul.

For its part, KT leveraged its rich experience in demonstration projects to begin developing new technologies such as AI, big data, cloud, and digital twins for commercialization. It has developed a cloud-based traffic platform for autonomous driving and secured real-time precision mapping technology necessary for autonomous driving vehicles, leading to the launch of autonomous bus services in Anyang City during the previous week alongside pilot operations for citizens.

Telecommunication companies’ focus on autonomous driving is also a long-term plan to preempt the future urban air mobility (UAM) business. Since both autonomous driving and UAM require not only 5G but 6G communication technology as well, as vast amounts of data need to be exchanged without delay during operations, the two businesses share many contexts.

The ITS market is projected to grow at an annual average of 8.8 percent to $109.5 billion in 2032 from $43.7 billion in 2022, according to Global Market Insights.