SK Telecom's bet on immersive experiences

The collaborative, immersive, virtual worlds of the metaverse are still in their infancy. And a reported drop of 12% in worldwide shipments of VR headsets and augmented reality devices in 2022 does not point to strong consumer appetite – although that may change if Apple enters the market in 2023 as expected with a VR/AR headset.

Devices aren’t all that’s needed. Immersive, virtual platforms will require secure, very high latency networks and new ways to partner on service delivery. Yet despite hurdles, the metaverse continues to garner interest.

The World Economic Forum, for example, announced its Global Collaboration Village (GCV) at this year’s Davos to “provide immersive spaces where stakeholders can convene, create and take action on the world’s most pressing challenges”. The GCV offers a glimpse of how B2B metaverse platforms could serve as secure, collaborative spaces for problem-solving, engineering, testing and education.

In the same week, SK Telecom partnered with Singtel to hold its first metaverse event, called ‘Destination:ifland’. Here the vision is B2C, with 130 winners of a contest on Singtel’s social media channels taking part in a range of activities on the virtual ifland platform. So we asked Yang Maeng-seog, VP and Head of Metaverse CO, SK Telecom, for an update on ifland, its metaverse platform.

• What does SK telecom see as the principal business benefits of Ifland?

ifland is one of the three key technologies we are promoting - i.e. AI, metaverse and Web3 - as we move toward becoming an AI Company. In this new virtual world of metaverse, users can communicate and socialize with one another through personalized avatars. They can also have fun taking part in a wide variety of live gatherings such as meetups, plays, concerts, k-pop events and exhibitions, and enjoy gamification features through play items. For us, the major business benefit of ifland can be achieved when the younger generation (or so-called the “Generation MZ” in Korea), the core customer base for our present and future, spend longer hours every day in this virtual world.

• Does SK Telecom play a direct role in helping create new communities and content? And how do you work with content developers?

We are actively establishing close and extensive cooperation with content developers. In particular, we are working together with IP holders like entertainment companies, content producers and character companies to help expand their business to the virtual world of ifland. Also by turning their products and creations into virtual 3D models, we are providing users with greater fun and excitement. For instance, we are creating lands (specially designed virtual spaces), hosting meetups, making costumes and developing a range of 3D items with these IP holders.

• Can you provide examples of Ifland communities/content/brand partnerships that are generating revenue?

We are currently building an economic system that can be used worldwide and plan to launch the system within this year. This will lead to revenue generation as we will be able to deliver virtual products - e.g. lands, costumes, items, meetups, etc. - created in collaboration with diverse IP holders.

• Are there aspects of monetizing the metaverse that national telcos are well-positioned to address?

Currently, we are focusing on attracting more users to ifland and increasing the number and variety of innovative features/services offered within the metaverse. Once the market matures, we will be able to generate revenue through paid volumetric concerts, fan meetings, and virtual goods that are created in collaboration with IP holders. We could also create a marketplace where lands, costumes and various kinds of items are produced and consumed.

• Typically, what do you provide telcos when they partner with you on Ifland?

We are sharing our technology and content capabilities accumulated through the operation of ifland in Korea with telcos of other countries to co-develop content that reflects their culture and trends. With our partner telcos, we are also carrying out joint marketing activities, fully leveraging their influence and understanding of the markets.

• What are some of the most popular uses of Ifland? Have there been any surprises?

ifland is mainly used as a way of socializing and networking with other users. A variety of major events were already held in this virtual world, including the World Knowledge Forum where Mike Pompeo, the former U.S. Secretary of State, gave a speech, the Nuri space rocket launch event, the new year’s sunrise event as well as numerous K-pop fan meetings and volumetric concerts. Most recently, an exclusive concert and a live fan meeting were held with American singer-songwriter, Alec Benjamin, targeting the Singapore market.

Michael Lesniak, Director of Business Development and Partnerships, Global Business Group, SK Telecom, will be presenting a metaverse case study at TM Forum's DTW Asia.

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