SK Telecom and KT are playing a leading role in securing 5G technology standards in Korea, while global mobile carriers are fiercely competing for the fifth generation (G) technology initiative. However, LGU + has is not competing for the 5G technology and experts are interested in the reason. It has been pointed out that LG U+ may experience difficulty if the company does not come up with future strategy as 5G service is expected to be commercialized in 2020.
According to the related industries on April 19, domestic and overseas mobile carriers are putting their efforts into developing 5G mobile communication technology, which is the core of the fourth industrial revolution.

The International Telecommunication Union (ITU) is expected to complete the 5G international standard by 2020, and mobile carriers in each country are aiming to advance into the world market and to preoccupy with the international standard.

In the case of Korea, the Ministry of Science, ICT and Future Planning plans to collect the standardization technology developed by domestic mobile carriers and submit it to ITU and `3GPP`, a private standardization group, early next year. The Future Department plans to mobilize a two-track strategy that suggests standards for both ITU and 3GPP, considering that standardization technologies established by 3GPP lead to ITU standards. In this regard, the Ministry of Science, ICT and Future Planning is running the 5G Strategy Committee, which focuses on the public and private sectors, and SK Telecom and KT already reflected the technology developed by its global partners in the 3GPP 5G standard task.

However, LG U + is somewhat resilient to the 5G international standardization efforts compared to its competitors in Korea. LG U + has been participating in the 5G demonstration project promoted by the government, but has failed to achieve outstanding results in the development of international standardization technology.

A representative of the Ministry of Science, ICT and Future Planning mentioned, ‘We know that LG U + is concerned about the 5G business model, and they will launch 5G service that will not lag behind competitors when the 5G market becomes more visible.’

There is also analysis that LG U + can be lagging behind in the competition for 5G patents. Currently, SK Telecom holds about 120 patents and KT holds about 60 patents. However, LG U + does not disclose related patent information. It is an analysis that the patent burden will increase due to the `Frand` principle, which is a reasonably patent royalties between carriers participating in 5G technology as LG U + does not have 5G standard patents.

It is also pointed out that it may be exposed to patent lawsuits. A representative of the Ministry of Science, ICT and Future Planning said, ‘Each company does not disclose related technology even if it registers a patent in the Patent Office. There are many cases in which a competitor filed a lawsuit for a large amount of damages in case of unauthorized use of a patent.’

An industry expert said, ‘Vice president Kwon Young-soo, who works as a winner in the group, is usually in a strict management style, and will appear outside when the business is properly prepared. However, considering the current situation, the company may be in third place in 5G market.’

By Na Won Jae nwj@


[ copyright ⓒ The Digitaltimes ]