Samsung Electronics has won a US$6.6-billion (R110-billion) order to provide 5G wireless solutions to Verizon Communications in the US, a big win for the electronics giant’s networking gear business.
The contract was finalised on Friday and is valid from 30 June to December 2025, it said in a regulatory filing.
The deal marks one of Samsung’s biggest 5G contracts since Korea’s largest corporation decided years ago to invest in networking and compete with global players like Nokia and Ericsson in providing telecoms equipment. It should lift Samsung’s market share in the wireless industry at a time leader Huawei Technologies is grappling with US sanctions and Washington’s effort to get allies around the world to shut out the Chinese company.
“With this latest long-term strategic contract, we will continue to push the boundaries of 5G innovation to enhance mobile experiences for Verizon’s customers,” the company said in an e-mailed statement.
Samsung, the world’s largest memory chip and electronics gadget maker, has been pushing hard to expand its market share in the 5G equipment market and investing in sixth-generation mobile networks. The company didn’t provide further details about the Verizon deal. The US carrier gained much-needed mid-band spectrum for its 5G roll-out after emerging among the top winners in a recent US auction of airwaves. — Reported by Sohee Kim, (c) 2020 Bloomberg LP