STOCKHOLM -- Ericsson (NASDAQ: ERIC) and LG Uplus, headquartered in Seoul, South Korea, have signed a memorandum of understanding (MoU) to collaborate on the development of 5G and Internet of Things (IoT) technologies.

Under the terms of the agreement, which will initially run until 2020, the two companies aim to take the lead in the development of 5G and IoT platforms. The MoU covers four key areas: IoT infrastructure, including narrow-band LTE; software-defined networking (SDN) and Network Functions Virtualization (NFV), making the core network 5G ready; global content delivery networks (CDNs); and IoT-Advanced technologies.

Ericsson and LG Uplus will establish technology and frequency strategies and work together to prepare a roadmap for long-term network development. The two companies will cooperate in a broad range of areas including research, testing and result sharing, as well as the development of technology and equipment.

Ulf Ewaldsson, Chief Technology Officer, Ericsson, says: "By enabling essentially unlimited access to information anywhere and anytime, 5G can deliver enormous benefits to people, business and society. Realizing this transformative vision requires a strong industry ecosystem, and we are delighted to partner with LG Uplus to lead the development of both 5G and IoT platforms."

Kim Suntae, Chief Technology Officer of LG Uplus, says: "We will prepare for the 5G era based on a combination of our network management know-how and Ericsson's strong technological power. The two companies will lead network evolution by introducing advanced network technologies to domestic and overseas markets through close collaboration."

Ericsson AB (Nasdaq: ERIC)