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Verizon Signs MoU with SK Telecom, Strengthens 5G Alliance
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U.S.telecom behemoth Verizon Communications Inc. (VZ - Free Report) and leading South Korean wireless communication service provider SK Telecom Co. Ltd.(SKM - Free Report) are extending ties to strengthen their 5G network footprint. The telco giants recently signed a Memorandum of Understanding (MoU) to merge their 5G technical specifications on a global basis. This MoU will strengthen the collaboration between the companies.
The tie-up will witness a number of joint studies and researches which will further be utilized for the development of 5G technical specifications and innovative use cases. Both the operators have been playing a major role in the emerging 5G environment where industry expects that the first commercial services based on a 5G standard will appear in 2020.
What is 5G?
5G or 5th generation mobile networks or 5th generation wireless systems is the next major phase of mobile telecommunications standards after the 4G/IMT standards. According to Next Generation Mobile Networks Alliance, 5G networks allow data rates of tens of megabits per second for millions of users, 1 Gb per second simultaneously to people on the same office floor, increased spectral efficiency compared to improved 4G coverage, signaling efficiency enhanced, latency reduced compared to LTE. Further, 5G is expected to be rolled out by 2020 to meet business and consumer demands.
Verizon and SK Telecom’s Efforts
Verizon, after gaining regulatory clearance from the Federal Communications Commission (FCC) for fixed 5G deployment before 2018, aims to launch a fixed wireless 5G pilot next year. The company is actively collecting all the pieces it needs to initiate 5G deployment. Moreover, the FCC presumes that Verizon's "aggressive" 5G deployment plans will prove to be beneficial for consumers in America.
SK Telecom is similarly aiming for a pre-commercial 5G launch in 2017. It plans to bring together an "end-to-end 5G pilot system in an outdoor environment" using the "key enabling technologies" it has identified for 5G which includes – millimeter wave (mmWave) high-frequency radio connectivity for devices and networks, LTE, 5G and WiGig (60GHz) interworking, virtualized RAN, network slicing and a distributed core network – by the end of 2016. This will help in the initial assessment of performance. By 2017, SK Telecom plans to perform a large scale pre-commercial 5G deployment for more detailed assessment of the overall 5G system. The operator completed a 5G 28GHz radio test outdoors in Mar 2016.
This latest partnership has been structured on the formation of the 5G Open Trial Specification Alliance which was initially formed by Verizon Communications, SK Telecom, Japan's NTT DoCoMo Inc. and South Korea's KT Corp. (KT - Free Report) . However, the omission of NTT DoCoMo and KT Corp from the 5G alliance between Verizon and SK Telecom marks a partnership within a partnership. Both the telco companies arranged a "technical coordination/cooperation meeting" to share 5G-related ideas, including the Internet of Things (IoT) and infrastructure virtualization. This meeting helped the companies work in a more integrated manner.
Other Mergers
Verizon and SK Telecom are also integrating their efforts in a similar initiative called Mobile Central Office Re-architected as a Datacenter (M-CORD). M-CORD aims to build on the better-known CORD project by benefiting from developments in mobile edge computing and the virtualization of mobile infrastructure components. This need for central offices to function as datacenters is expected to popularize in the 5G era, as operators aim to bring a virtualized 5G core much closer to their customers.
The Bottom Line
5G has appealed to the telecom industry and hence similar partnerships are evolving. Nonetheless, there's a lot of discussion on the technology as we know with every new G(generation) entering the wireless technology world, the demand, popularity and excitement increases among users. The signing of the MoU reflects the combined efforts of both the companies to advance 5G deployment and drive technical development toward global commercialization of 5G technology.
Verizon currently has a Zacks Rank #3 (Hold) while SK Telecom has a Zacks Rank #2 (Buy).
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Verizon Signs MoU with SK Telecom, Strengthens 5G Alliance
U.S.telecom behemoth Verizon Communications Inc. (VZ - Free Report) and leading South Korean wireless communication service provider SK Telecom Co. Ltd. (SKM - Free Report) are extending ties to strengthen their 5G network footprint. The telco giants recently signed a Memorandum of Understanding (MoU) to merge their 5G technical specifications on a global basis. This MoU will strengthen the collaboration between the companies.
The tie-up will witness a number of joint studies and researches which will further be utilized for the development of 5G technical specifications and innovative use cases. Both the operators have been playing a major role in the emerging 5G environment where industry expects that the first commercial services based on a 5G standard will appear in 2020.
What is 5G?
5G or 5th generation mobile networks or 5th generation wireless systems is the next major phase of mobile telecommunications standards after the 4G/IMT standards. According to Next Generation Mobile Networks Alliance, 5G networks allow data rates of tens of megabits per second for millions of users, 1 Gb per second simultaneously to people on the same office floor, increased spectral efficiency compared to improved 4G coverage, signaling efficiency enhanced, latency reduced compared to LTE. Further, 5G is expected to be rolled out by 2020 to meet business and consumer demands.
Verizon and SK Telecom’s Efforts
Verizon, after gaining regulatory clearance from the Federal Communications Commission (FCC) for fixed 5G deployment before 2018, aims to launch a fixed wireless 5G pilot next year. The company is actively collecting all the pieces it needs to initiate 5G deployment. Moreover, the FCC presumes that Verizon's "aggressive" 5G deployment plans will prove to be beneficial for consumers in America.
SK Telecom is similarly aiming for a pre-commercial 5G launch in 2017. It plans to bring together an "end-to-end 5G pilot system in an outdoor environment" using the "key enabling technologies" it has identified for 5G which includes – millimeter wave (mmWave) high-frequency radio connectivity for devices and networks, LTE, 5G and WiGig (60GHz) interworking, virtualized RAN, network slicing and a distributed core network – by the end of 2016. This will help in the initial assessment of performance. By 2017, SK Telecom plans to perform a large scale pre-commercial 5G deployment for more detailed assessment of the overall 5G system. The operator completed a 5G 28GHz radio test outdoors in Mar 2016.
This latest partnership has been structured on the formation of the 5G Open Trial Specification Alliance which was initially formed by Verizon Communications, SK Telecom, Japan's NTT DoCoMo Inc. and South Korea's KT Corp. (KT - Free Report) . However, the omission of NTT DoCoMo and KT Corp from the 5G alliance between Verizon and SK Telecom marks a partnership within a partnership. Both the telco companies arranged a "technical coordination/cooperation meeting" to share 5G-related ideas, including the Internet of Things (IoT) and infrastructure virtualization. This meeting helped the companies work in a more integrated manner.
Other Mergers
Verizon and SK Telecom are also integrating their efforts in a similar initiative called Mobile Central Office Re-architected as a Datacenter (M-CORD). M-CORD aims to build on the better-known CORD project by benefiting from developments in mobile edge computing and the virtualization of mobile infrastructure components. This need for central offices to function as datacenters is expected to popularize in the 5G era, as operators aim to bring a virtualized 5G core much closer to their customers.
The Bottom Line
5G has appealed to the telecom industry and hence similar partnerships are evolving. Nonetheless, there's a lot of discussion on the technology as we know with every new G(generation) entering the wireless technology world, the demand, popularity and excitement increases among users. The signing of the MoU reflects the combined efforts of both the companies to advance 5G deployment and drive technical development toward global commercialization of 5G technology.
Verizon currently has a Zacks Rank #3 (Hold) while SK Telecom has a Zacks Rank #2 (Buy).
VERIZON COMM Price
VERIZON COMM Price | VERIZON COMM Quote
SK TELECOM CO Price
SK TELECOM CO Price | SK TELECOM CO Quote
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