SK Telecom Jumps into Software

SK Telecom Co., South Korea’s largest mobile-phone operator, plans to spend 1 trillion won ($896 million) to develop software for mobile handsets, Bloomberg reports. Apparently, SK Telecom thinks it has to create its own mapping, instant messaging and social networking apps.

Some observers will argue this effort is likely to fail. Neither consumer apps nor software have tended to be areas of extreme competence for telcos or mobile service providers in the past. On the other hand, the Korean market, like many other international markets, does not have the same end user preference patterns as one might see today in the U.S. market.

One might tremble to compete with Facebook or Google in the U.S. market. But those services are not necessarily so entrenched everywhere. SK Telecom might see an opening to move its brand further up the value stack.

The investment, spread over three years starting 2011, will be made mostly in research and development, Chief Executive Officer Jung Man Won says.

SK to Make Software to Compete With Facebook, Apple - Bloomberg