Samsung Wins $6.6 Billion 5G Verizon Deal While Huawei Struggles
Samsung Electronics Co. won a 7.9 trillion won ($6.6 billion) order to provide fifth-generation wireless solutions to Verizon Communications Inc. in the U.S., a big win for the electronics giant’s networking gear business.
The contract was finalized Friday and is valid from June 30
through 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 Oyj and Ericsson in providing telecom
equipment. It should lift Samsung’s market share in the wireless industry at a
time leader Huawei Technologies Co. is grappling with U.S. sanctions and
Washington’s effort to get allies around the world to shut out the Chinese
company.
Nokia’s shares fell as much as 2.5% Monday in Helsinki.
Liberum analyst Janardan Menon cited past evidence that the Finnish telecom
gear giant is losing share at the largest American carrier to Ericsson,
potentially hampering its longer-term investment in technology.
“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 said in an emailed 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 U.S. carrier gained
much-needed mid-band spectrum for its 5G rollout after emerging among the top
winners in a recent U.S. auction of airwaves.
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