In anticipation of a surge in demand for digital content following the launch of China's homegrown TD-SCDMA services, SK Telecom announced on May 27 that it has signed an MoU (Memorandum of Understanding) with the Chinese government to jointly set up a digital content center in Beijing, South China Morning Post reported.

At the same time, SK Telecom also announced that it will set up a consortium with its Korean subsidiaries, including SK Engineering and Construction and SK C&C, to jointly invest US$1 billion in the new facility, according to the same report.

Covering an area of 200,000 square meters, the new facility - to be named the International Digital contents and Industrial Design Complex - is expected to begin construction in 2010 and slated for completion in 2013, according to Reuters.