So in order to secure resources for future investments, including investments for AI to drive growth, we will do our best to create additional resources in all domains, including profitability improvement through cost control, securitization of certain assets and investment efficiency enhancements. Thank you.
Operator: The next question will be presented by Sun Jung Lee from Bank of America.
Sun Jung Lee : I’m Lee Sun Jung from Bank of Korea. As you mentioned in your previous answers, you’re going to continue to try to expand resources available for shareholder return. So in this regard, I’d like to get more details on your business plans. In particular, the telco revenue and the growth momentum is slowing down. So what are your key priorities for this year for your MNO business as well as strategies? And secondly, starting from last year, you have been pursuing and implementing the AI Pyramid Strategy and you’re promoting your AI businesses. So I’d like to get a better understanding of the achievements so far and future plans. Please also share with us your plans for investment so that we can understand how much resources will be available for shareholder returns.
Yang-Seob Kim: Thank you for your questions. As for the first question, the Head of the Integrated Marketing Strategy Office will comment on the key priorities and strategies for the MNO business. And then the Head of the Corporate Strategy Office will comment on the major achievements and plans for the AI Pyramid Strategy.
Kim Ji-hyeong: I am Kim Ji-hyeong, Head of the Integrated Marketing Strategy Office. I believe you asked this question because the MNO growth trend centered on 5G subscriber net adds is likely to slow down with the 5G penetration rate being nearly 70%. So going forward, the key to our MNO business will be to grow the top line through pricing and differentiated and competitive services as well as enhancing the operational efficiency through AI technology. So more specifically, we announced new price plans at the end of March, including a KRW 30,000 range 5G plan and an additional segment pricing plan for the youth. And it is intended to offer more customer benefits and options in order to retain customers who are sensitive to price.
And in consideration of the popularity of OTT services in Korea, we offer our 5G customers discounts for OTT subscriptions and we also launched a new premium price plan, and these are part of our effort to continue to create demand based on customers’ needs. Also, we restructured roaming plans into borrow pricing scheme to respond to increasing travel needs after the pandemic, and this has resulted in the increasing roaming revenue. And it is an example of how we continue to develop new revenue streams. And in terms of market operation, we use AI technology to recommend products and services tailored for customers and conduct more efficient marketing by utilizing online channels for customer acquisition. And finally, we are also planning to utilize AI contact centers to enhance customer experience and improve cost efficiency in an effort to further improve the MNO profitability and productivity.
Thank you.
Choi Hwan-seok: Hello. I am Choi Hwan-seok, Head of the Corporate Strategy Office. I’d like to address your question on the AI Pyramid Strategy’s major achievements and future plans. As the CFO mentioned during his presentation, the Global Telco AI Alliance, or GTAA, was officially launched in February to expand SK Telecom’s AI Pyramid Strategy globally. And the founding members of the Global Telco AI Alliance are Deutsche Telekom in Europe, e& in the Middle East, Singtel in Southeast Asia and SoftBank in Japan, as well as SK Telecom. So when combined, we have access to 1.3 billion subscribers in 50 countries. In addition to these 5 founding members, we have been receiving a lot of interest and attention from various telecom companies around the world.
So we are in the process of expanding the membership of the alliance, and we will achieve economies of scale and global coverage by utilizing global telco’s customers, technology and service capabilities. So when we apply what I just mentioned to the AI Pyramid Strategy, the first layer is the AI infrastructure domain. And there, we plan to develop telco-specific LLM based on multinational customers and data and offer it to our member companies. And we believe that this will help build a common platform for telcos and strengthen our negotiating power against big tech companies. In addition, AI DC and AI semiconductors are part of the AI infrastructure domain and we have been accumulating related capabilities. We will not only utilize these capabilities internally, but also offer them to the members of the GTAA so that we can expand our business globally.
And the second layer of the AI Pyramid Strategy is the AIX, which involves transforming TBE or MNO media and enterprise businesses using AI. As was mentioned previously, we are planning to use AI for customer contact and marketing activities. And furthermore, we will share these use cases of telco-specific use cases of AI with members of the GTAA and expand them globally to build global references for telco AIX. And finally, the top layer of the AI Pyramid Strategy is about developing global PAA. It refers to services provided by the GTAA on the common telecom platform that we will build for the first layer. And the PAA service of A. will be expanded globally, and each telco will be able to localize PAA for their local users and present new customer experiences.
