Reuters Summit-SK Telecom eyes "smart grid" for growth
* Studies possible collaboration with KEPCO on "smart grid"
* To unveil voice recognition service at year-end
(For other news from the Reuters Global Technology Summit, click on: here)
By Rhee So-eui
SEOUL, May 19 (Reuters) - SK Telecom (017670.KS), South Korea's top mobile carrier, plans to become a player in the promising "smart grid" business and is studying a possible cooperation with state-run power monopoly KEPCO (015760.KS).
The smart grid system, which utilises telecommunication networks to make electricity distribution more efficient, is one of several business areas SK Telecom is looking at for future growth, said Kim Min-seok, president of the company's Future Management Institute.
"It would be good to have a partnership with KEPCO. We are studying ways we can collaborate," Kim told the Reuters Global Technology Summit in Seoul, adding that the company's ambitions may go beyond South Korea itself.
"We are also thinking about going abroad with smart grid, although no decision has been made."
In the United States, prospects for the smart grid business are bright due to the pressing need to replace outdated utility networks and the Obama administration's stimulus plans. General Electric (GE.N), for instance, expects its smart grid business to grow to represent $3 billion-$4 billion in annual revenue over the next three to four years.
The South Korean government plans a nationwide initiative to introduce smart grid systems and may introduce a small-scale trial service as early as next year.
While questions remain on when the market would take off, smart grids could be a boon for device makers and network operators, while allowing utility companies to maximise efficiency, Kim said.
He also said SK was planning to unveil a trial voice recognition service around the end of this year. When commercialised, voice recognition on phones can simplify process for Web searching and other contents and can eventually help boost data revenue, Kim said.
"Voice recognition is the user interface of the next generation. It can be applied widely, not only on mobile communications but in home appliances and toys," he said.
Voice recognition in Korean had so far been slowed down by technical problems linked to the language.
Language translation is another feature SK is working on, Kim added.
SK Telecom, which has as about half of South Korea's fully saturated mobile phone market, faces stagnant revenues and fierce competition and is looking for new growth business.
It said in April that it has at least 3 trillion won ($2.4 billion) at its disposal to spend in the next five years to find new growth drivers, including next-generation networks and cross-industry convergence such as combining telecom technology with infrastructure.
Kim said promising areas for convergence services are electricity, financial transactions, automobile and logistics.
($1=1246.6 Won)
(Additional reporting by Marie-France Han; Editing by Lincoln Feast)
((soeui.rhee@thomsonreuters.com; +82 2 3704 5650; Reuters Messaging: soeui.rhee.reuters.com@reuters.net))
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