Seoul, Korea – In late July, SK Telecom, Deutsche Telekom, e& and Singtel announced that they formed the Global Telco AI Alliance. These four pioneer members agreed on joint effort to accelerate AI transformation of their existing telco businesses, and develop new growth drivers through new AI-powered business models.

Ultimately, they want to create a new customer experience and make a difference in the lives of global consumers using AI technology.

A Telco AI Platform

A Multilateral memorandum of understanding (MoU) is the foundation to the telcos future work together. The Multilateral MoU signing ceremony took place in Seoul, Korea, with the key presences of the telcos’ key executives who attended in-person or online.

According to the MoU, the four telcos will develop the Telco AI Platform by combining their respective technologies and capabilities. This platform is then expected to serve as the core foundation for new AI services. These AI services include those designed to improve existing telco services, digital assistants, and super apps.

These four pioneer members agreed on a joint effort to accelerate the AI transformation of their existing telco businesses, and develop new growth drivers through new AI-powered business models.

To facilitate the cooperation, a Global Telco AI Alliance Joint Working Group will be formed, and it will have detailed discussions on matters like:

• co-investment opportunities and the co-development of the Telco AI Platform to reach a definitive agreement.
• a C-level officer from each telco to be designated as members of this working group
• support for each other in operating AI services
• support for apps in markets each telco operates in
• cooperation to build an ecosystem

“The launch of the Global Telco AI Alliance is meaningful in that it marks the beginning of a new journey to innovate our business models while growing together with our global partners,” said Ryu Young-sang, CEO of SKT. “Through collaborative efforts, we will accelerate AI transformation of all industries, provide new value and experience to our customers, and lead the growth of the global AI ecosystem.”

An ecosystem of partners can significantly expedite the development of new and innovative AI services that can bring tremendous benefits to both businesses and consumers.

“In order to make the most of the possibilities of generative AI for our customers and our industry, we want to develop industry-specific applications in the Telco AI Alliance. I am particularly pleased that this alliance also stands for bridging the gap between Europe and Asia and that we are jointly pursuing an open-vendor approach. Depending on the application, we can use the best technology. The founding of this alliance is an important milestone for our industry,” said Claudia Nemat, Board Member Technology and Innovation at Deutsche Telekom.

(From top left): Yuen Kuan Moon, Group CEO of Singtel, Claudia Nemat, Board Member Technology and Innovation at Deutsche Telekom, Hatem Dowidar, Group CEO of e&, Chey Tae-won, Chairman of SK Group, and Ryu Young-sang, CEO of SKT.

“We recognize AI’s immense potential in reshaping the telecommunications landscape and beyond and are excited to embark on this transformative journey with the formation of the Global Telco AI Alliance. The alliance signifies a strategic commitment to driving innovation and fostering collaborative efforts. Our shared goal is to redefine industry paradigms, establish new growth drivers through AI-powered business models, and pave the way for a new era of strategic cooperation, guiding our industry towards an exciting and prosperous future,” said Khalifa Al Shamsi, CEO of e& life.

“This alliance will enable us and our ecosystem of partners to significantly expedite the development of new and innovative AI services that can bring tremendous benefits to both businesses and consumers. With our advanced 5G network, we are well-placed to leverage AI to ideate and co-create and are already using it to enhance our own customer service and employee experience, increase productivity and drive learning,” said Yuen Kuan Moon, Group Chief Executive Officer of Singtel.

SUMMARY

This gargantuan multilateral collaboration is a gargantuan tip of the hat to the immense potential Artificial Intelligence has for individuals and businesses. Each telco will have access to each others’ capabilities, technologies, expertise, experience, and not to mention, markets. What does this spell for customer experience? What does this MoU mean for their respective businesses that are not touched by AI?

(This article was adapted from a press release)