Samsung breaks into the US in a big way with a Verizon 5G contract. The South Korean consumer electronics giant, said on Monday that they won a $6.64 billion contract to supply telecommunications equipment to Verizon in the US. It is a major victory for the company in the next-generation 5G network market.
Samsung‘s global outlook for its networking business has improved after following US sanctions on its biggest rival, China’s Huawei. According to analysts they could become an alternative to the telecoms dominance. Verizon adviser Hans Vestberg told CNBC in July last year that the operator does not use any Huawei equipment.
Verizon has already been a Samsung customer before the order, although now the South Korean group explained that it will supply the US with network solutions, including 5G, for the next five years, until December 2025..
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Samsung’s latest contract with Verizon is the largest network equipment provisioning deal in its history. Samsung has been trying to expand its 5G equipment customer base in recent years.
Samsung has supplied 4G and 5G network equipment to US carriers including AT&T, Sprint, and Verizon, and is working with NTT DoCoMo and Japan’s KDDI to develop 5G business models. It has increased its market share in South Korea, which launched the world’s first 5G mobile service in April last year.
In addition to the US, the company has so far signed contracts for 5G equipment with other countries, such as Canada, New Zealand and Japan. The United States is the world’s largest mobile telecommunications market, with its infrastructure spending accounting for about a quarter of the world’s network investment.