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Samsung buys NewNet Canada for RCS technology

Posted November. 17, 2016 07:19,   

Updated November. 17, 2016 07:33

한국어

Samsung Electronics will acquire a Canadian Rich Communication Services operator NewNet Canada. Rich Communication Services, often abbreviated to RCS, is the next generation texting technology that is being hunted by leading telecom firms around the world.

Samsung Electronics said it has decided to purchase NewNet Canada in order to bolster RCS business, aiming at building infrastructure for a platform allowing communications based on artificial intelligence as Internet of Things is becoming a big part of our society. It has been reported that Samsung Electronics purchased 100 percent shares of NewNet Canada at 20 billion-30 billion won (17 million-25 million dollars).

RCS standards enable users to use messages more like what they can do with mobile messengers, and users can benefit from expanded features such as group chat and transferring photo, video and multimedia content. Industry sources in Korea said that Samsung Electronics is focusing on “Communication platform,” which will emerge as a core asset of Internet of Things, and thus purchased a RCS operator.

We are living in the Internet of Things era when people share information with appliances through artificial intelligence. Communications among appliances will also be possible. In order for Samsung Electronics to showcase its mobile products, appliances and services in the global market associated with Internet of Things, RCS standards are a mandatory condition for entry into the market.

“With a new deal showing Samsung Electronics’ commitment to RCS, the company aims at preparing a basic platform for it to improve its business portfolio by adding new segments associated with Internet of Things such as chatting robot and home security, instead of expanding into the messenger business,” industry sources said. “Samsung Electronics can integrate its technology and products into texting services operated by global telecom firms using RCS standards, which have been adopted universally by leading telecom service providers around the world.”

Besides Samsung Electronics, other tech giants that do not have popular messaging platforms are preparing RCS-based messaging services. For example, Google teamed up with Sprint, one of the top three telecom service providers in the US, and began RCS-based messaging services. It has been reported that Google is negotiating with French, British and Indian telecom service providers to strengthen its RCS business. Google and RCS providers are hoping to expand their subscriber bases instantly, by offering RCS-based services.

“In Korea, for example, Kakao is using its messenger ‘Kakao Talk’ as a platform to expand different services such as ordering food or buying content. Messaging services are increasingly becoming a core asset in the ICT industry to provide more services,” said industry sources in Korea. “Samsung Electronics is trying to build a RCS-based ecosystem of its own by selling more devices with RCS functions.”



Dong-Il Seo dong@donga.com