Samsung Electronics wins $6.6 billion Verizon order for network equipment

Samsung Electronics wins $6.6 billion Verizon order for network equipment
Samsung’s global prospects for its network business have improved following U.S. sanctions on its bigger rival Huawei, analysts said.

Samsung Electronics wins $6.6 billion Verizon order for network equipment
Samsung Electronics said on Monday it had won a $6.64 billion order to supply wireless communication solutions to Verizon within the us , a serious win for the South Korean firm within the next-generation 5G network market.

Samsung’s global prospects for its network business have improved following U.S. sanctions on its bigger rival Huawei, analysts said.

Verizon CEO Hans Vestberg told CNBC in July last year that Verizon doesn’t use any Huawei equipment. Verizon had already been a Samsung customer before the order.

Verizon is believed to be Nokia’s biggest customer, JP Morgan research said during a July note.

“Samsung winning the order from Verizon would help the corporate expand its telecommunication system business abroad, potentially giving leverage to barter with other countries,” said Park Sung-soon, an analyst at Cape Investment and Securities.

The order is for network equipment, a Samsung spokesman said. the corporate declined to discuss detailed terms the contract like the portion of 5G-capable equipment included.

“With this latest long-term strategic contract, we’ll still push the boundaries of 5G innovation to reinforce mobile experiences for Verizon’s customers,” Samsung said during a statement.

Samsung said during a regulatory filing the amount of the contract, which Samsung’s U.S. unit signed with Verizon Sourcing LLC, is from June 30, 2020 to Dec 31, 2025.

Samsung had a third market share of the worldwide total telecommunication system market in 2019, behind No. 1 Huawei with 28%, Nokia’s 16%, Ericsson’s 14%, ZTE’s 10% and Cisco’s 7%, consistent with marketing research firm Dell’Oro Group.

The Trump administration last month unveiled plans to auction spectrum previously dedicated to military purposes for commercial use starting in mid-2022, to build up fifth-generation network coverage within the us .

The next-generation 5G wireless network is predicted eventually to attach and enable high-speed video transmissions and self-driving cars, among other uses.

Britain in July ordered Huawei equipment to be purged completely from its 5G network by the top of 2027, adding it must usher in new suppliers like Samsung Electronics and Japan’s NEC . Samsung Electronics shares rose 2% compared to the broader KOSPI’s 0.5% climb.

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