The South Korean tech giant Samsung has announced that it has signed a contract to supply network equipment to Verizon in the US. Samsung and Verizon’s wireless telecommunications solutions contract is worth about $ 6.6 billion according to information released on Monday, ensuring a great triumph for the South Korean seller against established competitors.
Samsung Networks will supply network equipment and solutions, including 5G, to their American partner for the next five years, until December 2025. This new contract with Verizon is the largest that Samsung has ever received in its history. Samsung’s network business was one of the first to offer 5G network equipment to South Korean telecommunications companies when they launched their 5G networks in 2019.
“We are pleased to expand our long-standing partnership with Verizon to advance their next-generation network evolution. 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,” Samsung’s representative noted in a statement to ZDNet.
The South Korean company has invested significant funds in research and development as global telecommunications equipment manufacturers compete for hegemony in the 5G field. It is likely that more companies will turn to Samsung for their 5G equipment, as there are not many options other than Samsung and Ericsson, excluding Huawei and Nokia.
This significant contract should increase Samsung’s market share in the wireless industry, as the current leader Huawei fights United States prohibitions and Washington’s efforts to compel associates around the world to cut ties with the Chinese company. With Huawei being excluded from various western countries, Samsung has been applying extra effort to expand its network infrastructure business for the past couple of years. The company has already received contracts from telecom network operators in Canada, Japan, New Zealand, South Korea, United Kingdom and the US.