SK Telecom and Kakao Partnership
For some time now, there has been a growing consensus that Communication Service Providers (CSPs) need to diversify away from the bit pipe model in order to generate additional revenues and profits. Investment banks and industry analysts have had the refrain of “digital transformation,” “multimedia services,” “value-added services” for some time now. However, perhaps with the exception of the largest CSPs, many lack the skillsets, confidence, and knowledge to provide sure-fire implementations.
Therefore, partnerships and collaboration are more likely to generate a better return on investment. For a couple of years now, SK Telecom and Kakao have been exploring the development of location-based services. In early November 2019, the two companies announced a stock swap transaction: SK Telecom will hold a 2.5% stake in Kakao, and Kakao will have a 1.6% stake in SK Telecom. Furthermore, the two companies wish to accelerate development by establishing a “Synergy Committee” headed by Ryu Young-sang, Vice President and Head of MNO Business of …
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