S. Korean telcos eye AI services as new growth engines

South Korea's major telecom firms are expanding artificial intelligence (AI)-based services in the quest for growth beyond mobile communications.

The new AI services range from mobility to factory operations.

Telecom operators posted lethargic average revenue per user from their main mobile business with SK Telecom's dropping 1.4 percent on-quarter in the January to March period. That of LG Uplus increased by only 0.2 percent, and KT's rising 1.4 percent over the same period.

Last month, LG Uplus Corp. joined an alliance that includes LG Electronics Inc.and KT Corp. that aims to develop human-like algorithm solutions.

LG Uplus launched with Kakao Mobility Corp an augmented reality (AR)-based navigation service for 5G smartphones to provide driving directions and road information in real-time.

Meanwhile, SK Telecom Co. has reportedly been working with Samsung Electronics Co. and Kakao Corp. to boost its competitiveness in AI.

SK Telecom also inked a deal with automotive parts maker Hwashin Co. to install an AI-powered quality control system that uses sound to detect defective products at its local production lines over the next five years.

KT is seeking to utilize an AI-based climate and energy control system for buildings through its real estate subsidiary KT estate Inc.