LG Electronics is increasing its presence in the communications solutions market. As it enters its fourth year since stepping into the market as a common carrier, assessments say it has built up not only operational know-how but also considerable technical capability. Common carrier service refers to telecommunications services that install telecommunications line facilities (network infrastructure) and transmit voice, data, and video over them or lease lines.
According to the industry on the 10th, LG Electronics is hurrying preparations to enter the 6G (sixth-generation mobile network) market, building on its capabilities proven in 5G (fifth-generation mobile network) private network deployment and operation and in-vehicle communications equipment. The government has announced plans to begin pilot service in 2028 and commercialize 6G in 2030. The aim is to enter the market in a timely manner and deliver results.
Although standard-setting procedures have not yet taken place, 6G is expected to be a network up to 10 times faster (200 Gbps) than 5G, with connection density up to 100 times higher (100 million devices per ㎢). There is also discussion that artificial intelligence (AI) technology should be reflected across all networks—from access to core and operations—to improve speed, latency, stability, and energy efficiency. If such technology is realized, service responsiveness could rise for Autonomous Driving, robots, and Smart Factory applications that demand ultra-precise, ultra-low-latency, and ultra-high-speed connectivity.
To that end, earlier this month LG Electronics signed a collaboration with LG Uplus on "preemptive research and development (R&D) of AI-based communications technology and international standardization." The intent is to go beyond securing technology for the 6G commercialization window and proactively identify core elements that will shape the structure of future communications environments. LG Electronics has also been collaborating with KT on technology development in 6G and quantum internet communications since 2024.
LG Electronics also decided last month to join a 6G alliance launched under the leadership of Qualcomm Technologies. With the launch of the alliance, Qualcomm presented a roadmap targeting implementation of commercial 6G systems by 2029. LG Electronics plans to conduct AI-based 6G research and development together with 30 global corporations across connected mobility, mobile communications, the Internet of Things (IoT), and mobile.
◇ Securing 6G foundational technologies since 2019
LG Electronics began focusing on the 6G market in 2019. At that time, it established the "LG Electronics-KAIST 6G Research Center," moving early to secure foundational technologies. Starting with this organization, launched as Korea's first 6G industry-academia cooperative research center, LG Electronics built technology development partnerships with the Fraunhofer Institute in Germany and the Korea Research Institute of Standards and Science (KRISS). It effectively created a "6G core technology R&D cooperation belt" and has focused on securing fundamental technologies.
In March last year, it also achieved the result of having a vice chair elected to the SA plenary, an organization within the 3rd Generation Partnership Project (3GPP), the global mobile communications standardization body. The SA plenary leads standardization of 5G and 6G system architectures and defines service scenarios, requirements, and security mechanisms. Kim Rae-young, principal researcher in the chief technology officer (CTO) institutional sector of LG Electronics, was appointed vice chair of the SA plenary.
LG Electronics also serves as the chair company of the applications working group in the Next G Alliance, a 6G technology body led by the Alliance for Telecommunications Industry Solutions (ATIS). Regarding Kim's appointment as SA plenary vice chair, the company said it "recognizes that our technological prowess and innovativeness in communications protocols and system architecture are at a world-class level."
◇ Entering the 5G private network market after building capabilities in-house
One reason LG Electronics is drawing attention in the market ahead of the 6G era is that, in addition to securing fundamental technologies, it is also building real-world operational capabilities through experience in the communications solutions business.
In the first half of 2022, LG Electronics deployed a 5G private network at LG Smart Park, its Changwon home appliance plant, and in the second half of 2023, at its home appliance plant in Tennessee, U.S. Based on this, it is running automated processes such as industrial automated guided vehicles (AGVs) transporting parts and materials. The Tennessee plant was also selected as a "lighthouse factory," chosen twice a year by the World Economic Forum after evaluating sites that actively adopt advanced technologies.
Having built up 5G private network deployment and operation capabilities through internal application, LG Electronics formalized its entry into the communications solutions market by adding "common carrier services" to its corporate purpose at a shareholders' meeting in March 2023. It completed registration as a common carrier that July. In addition to common carrier services, it also engages in businesses such as "manufacture and sale of communications machinery and equipment" and "communications construction."
LG Electronics' move into common carrier services is also related to changes in the mobile market. At the time, the three mobile carriers (SKT, KT, LG Uplus) had their rights to use spectrum in the 5G 28 ㎓ band revoked. This was because they failed to properly fulfill the rollout obligations attached when they were allocated the spectrum by the government, such as base station installation. To activate the 5G 28 ㎓ band, which features ultra-low latency and ultra-high speed, the government pushed a policy to expand supply centered on business-to-business (B2B). LG Electronics set a strategy to deliver results in the "5G private network" deployment market that opened up as a result.
◇ Leveraging the "smartphone legacy" to score in 5G private networks and vehicle components… succeeding overseas as well
After registering as a common carrier, LG Electronics swiftly prepared a 5G private network solution and became the first in the industry to obtain "domestic network equipment certification" from the Korea Association of Network Industries. With internal capabilities in place, it was able to respond to market changes in a timely manner. Leveraging this, it achieved results by building 5G private networks for external corporations such as LS Electric's smart factory in Cheongju, North Chungcheong Province, Korea University Anam Hospital, and a logistics center in Incheon.
In Nov. 2024, it also signed an agreement with Korea Railroad Corporation (KORAIL) to build a 5G private network. It carried out 5G private network construction projects at three sites—Seoul Station, Siheung Rolling Stock Depot, and Guro Substation—and in Feb. this year, tangible results emerged, successfully completing the first round of demonstrations. Services at Seoul Station, where AI analyzes crowding and robots guide customers, and autonomous driving robots for materials transport introduced at the Siheung Rolling Stock Maintenance Depot, are running on LG Electronics' 5G private network.
More recently, it has also notched results overseas. It strengthened its business portfolio by supplying its 5G private network solution "UltraMax" to the University of Alabama's advanced campus testbed project in the United States.
The fact that LG Electronics is delivering results in vehicle electric and electronic systems (vehicle components) is also cited as a positive factor for expanding its communications solutions institutional sector business going forward. According to LG Electronics, the VS division, which operates the vehicle components business, maintains a global market share of about 24% in telematics.
An industry official said, "LG Electronics' telematics are considered high-quality among equipment based on 5G," and added, "Some of the technologies applied in telematics can also be expanded into 5G and 6G Network communications solutions."
In the industry, one background factor cited for LG Electronics' success in the communications solutions market is the "legacy of its smartphone business." LG Electronics exited the loss-making smartphone business in Apr. 2021, but internalized the technology and talent. The number of communications technology-related patents LG Electronics accumulated while running its smartphone and other businesses exceeds 30,000. A company official said, "Based on communications foundational technologies accumulated over a long period, we will further solidify leadership that spans future mobility and the entire communications business."