Optical module maker Opticore has been selected as a direct supplier of transceivers to SK Telecom, the company said on Thursday.
It is the second time that the module maker has been selected as a direct supplier by the telco.
It was first chosen late last year and supplied optical transceivers to SK Telecom.
Opticore said it plans to supply transceivers that shares the same specifications as last year’s but at a cheaper price to the telco this time around.
Sales from this second deal will be reflected on the company’s earnings beginning next year.
SK Telecom has buying transceivers directly staring this year instead of using network equipment companies as middlemen as it did in prior years.
The change was due to increase its own profit margins and develop its own competence in transceivers, people familiar with the matter said.
Opticore was founded in February 2016. It posted 17.6 billion won in sales last year, most of them from Mux and Demux modules.
Meanwhile, OE Solutions and Lightron, South Korea’s largest and second-largest optical transceiver makers, respectively, saw their sales triple last year compared to 2018. This was due to roll out of 5G networks.
OE Solutions marked 210.3 billion in annual sales in 2019 and Lightron 112.8 billion won.
Opticore’s executives are led by ex-Lightron employees. Company CEO Simon Jin worked at Lightron for 10 years. It is being reviewed by the Ministry of SMEs and Startups to be chosen for government funding of up to 18.2 billion for five years.
Opticore secured 5.5 billion won in its Series A round in May. SBI Investment and KB Securities were some of the investors.
Opticore is aiming for sales of 18 billion won this year. It marked 4.8 billion won in sales in the first half of 2020.