SK Telecom (NYSE: SKM) announced that it will establish a cooperative relationship with China’s biggest telecommunications company, China Mobile, in areas of mobile games and M2M.

SK Telecom signed a Memorandum of Understanding (MOU) with China Mobile Jiangsu on April 8 in Nanjing City, Jiangsu Province. The two companies agreed to jointly develop content and platforms in areas of mobile games and M2M* (Machine-to-Machine). China Mobile Jiangsu is a branch of China Mobile that is responsible for the company’s overall games business.
*M2M (Machine-to-Machine) refers to futuristic technologies that enable both wireless and wired systems to communicate with other devices of the same ability.

With the aim to boost high quality and high specification games in both countries, SK Telecom and China Mobile Jiangsu agreed to exchange well-made mobile games content and upgrade games-related platforms to enable purchase of cash items.

The Chinese games market, currently focused on low specification games for feature phones, is forecasted to witness a rapid growth in Android smartphone games and China Mobile is expecting SK Telecom to supply T Store’s popular, high quality Android games to China Mobile.

SK Telecom will provide Chinese versions of Android-based games on its T Store after customizing them to meet Chinese customers’ needs. SK Telecom expects that this will lead to the development of a new win-win cooperation model for the company and competent Korean games developers.

Moreover, SK Telecom plans to provide games-related content to China Mobile through its Chinese subsidiary named Viatech.

In the M2M area, SK Telecom plans to first provide diverse M2M technology-based sensing networks as well as U-GW (Universal Gateway), which connects broadband and mobile telecommunications networks, to China Mobile Jiangsu. Furthermore, plans are ahead for the company to offer more advanced services based on these networks.

Oh Se-Hyun, President of SK Telecom’s China CIC said, "The MOU will create valuable opportunities for competitive Korean content providers to enter the Chinese market in full swing. SK Telecom will further strengthen its collaborative relationship with China Mobile in mobile games and M2M businesses to provide innovative services to its customers.