Samsung Bags 5G Verizon Deal Worth $6.6 Billion

Samsung Electronics Co. has bagged a 5G Verizon deal worth $6.6 billion. By winning this deal, Samsung would be responsible for providing fifth-generation wireless solutions to Verizon Communications Inc. Procuring this deal marks a major win for Samsung, as it looks further to expanding its networking business. The deal was sealed on Friday. However, the contract is valid from June 30, 2020, until December 31, 2025. 

The deal has come to be one of the major and very important 5G contracts finalized by Samsung, especially after the Korean-based firm decided to venture into the networking business and try and compete with the biggies in this area – Nokia and Ericsson, as it intended on developing and providing telecom-related gadgets.

By getting this deal, Samsung has improved its chances of seeking a better market share in the wireless business. On the contrary, it seems like Huawei Technologies Co is struggling to stay afloat owing to the attempts made by Washington as well as the US sanctions into enabling and convincing its global allies for closing down the Chinese company once and for all. 

Interestingly, in 2019, Huawei had ranked no. 1 in terms of the firm’s total global market share within the telecom equipment market. Huawei had a global market share of 28%, followed by Nokia with a 16% share. Ericsson stood third at 14%, followed by ZTE at 10% and Cisco at 10%. At that time, Samsung ranked 6th with a mere 3% of the total global market share. 

Sometime in July, Britain had passed on orders that it would not like any Huawei equipment to be present in its 5G networks by the end of 2027. At the same time, it had wished to bring new equipment suppliers like Samsung and Japan-based NEC. 

An email statement given out by the networking giant went on to read, “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.”

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During the previous month, the Trump-led government stated some of its plans to improve the fifth-generation network expansion and coverage within the country. To fulfill this need, the government stated that it plans on auctioning off the spectrum that was once reserved for military purposes for some commercial usage, somewhere around the middle of 2022. 

Samsung is well-known for producing a wide range of electronic gadgets and the biggest memory chips at the international level. It has been trying very hard to make a name for itself in the 5G gadget business and improve its market share in the field. It has also ventured into the area of sixth-generation mobile networks. The company has not revealed any more information related to the contract. 

The next-generation of 5G wireless network promises a lot of improvement in the networking field. With this sort of a network, it would be much simpler to establish connectivity with high-speed video transmissions. A wireless 5G network can also enable the existence of self-driving cars. Apart from these, there are various other benefits that one can expect.

Very recently, Verizon was in the news, all for good reasons. Along with Dish Network Corp, the US carrier emerged as the top winners during a recent US auction of airwaves event. By winning this auction, the carrier has expanded its mid-band spectrum with regards to its 5G release.

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