Samsung Electronics will supply 5G network equipment for Verizon, the world’s largest mobile carrier by revenue, through a deal worth 7.9 trillion won ($6.6 billion), according to the company’s regulatory filing Monday.
The deal marks the biggest network equipment export for Korea, while officially signaling that Samsung has entered the US 5G market.
According to the filing, Samsung will provide an array of 5G solutions including equipment for Verizon for the next five years.
While the US is the biggest telecommunications market, in which global equipment makers make huge investments, Samsung has worked on the market for the last 20 years to settle as a major supplier.
Samsung was the world’s first equipment manufacturer to commercialize 5G services in partnership with SK Telecom in Korea last year.
Samsung has invested more than $30 billion in 5G advancement and overall network development across the US, according to its network business.
It has been pursuing the US 5G market with the aim of providing end-to-end solutions from semiconductors to mobile phones and network infrastructure. The technology giant has undertaken such initiatives as the 5G Innovation Zone at its Samsung Austin Semiconductor facility in Texas and a collaboration to create the nation’s first 5G-enabled stadium.
In January, Samsung said it had acquired TeleWorld Solutions, a network service provider headquartered in Chantilly, Virginia, to support local network operators and accelerate and simplify rollouts of the 5G network across the US. The company operates as a subsidiary of Samsung Electronics America.
The Korean tech giant is also providing 5G solutions for AT&T, Sprint and US Cellular.
Samsung’s market share in the global telecom equipment market was 3 percent in 2019, behind No. 1 Huawei, Nokia, Ericsson, ZTE and Cisco.
The prospects for Samsung in the equipment market seem to have improved amid the tightening US sanctions on Huawei.
By Song Su-hyun (email@example.com