Samsung Elec signs $6.6 bn deal with Verizon to supply 5G network solutions

Samsung Electronics Co. received a boon from U.S. sanction on Chinese telecom equipment maker Huawei Technologies by landing a $6.44 billion contract to supply 5G network solutions to US wireless giant Verizon over the next five years.

The South Korean tech titan announced in a regulatory filing on Monday that its U.S. subsidiary Samsung Electronics America Inc. inked a deal to supply 5G wireless equipment and network solutions and provide maintenance service to the American mobile carrier from June 30 in 2020 to December 31 in 2025.

It is the single largest telecom equipment deal for a Korean entity.

As of 11:01 a.m. on Monday, Samsung Electronics shares jumped 1.8 percent to 56,600 won.

Industry watchers expect the contract would help the Korean firm expand its market share in the global 5G network market in which it currently commands 10 percent to 15 percent.

The deal would also lead to multiple subcontracts with its small- and mid-sized partners in Korea and creation of many jobs.

Samsung Electronics has signed contracts with Verizon, AT&T and Sprint in the U.S. as well as Japan’s KDDI to provide its 5G equipment after 5G network was launched in Korea for the first time in the world last year.

“Samsung Electronics’ large-scale 5G solution supply deal with America’s No.1 telco Verizon will not only help the company but also local SMEs to expand their presence in the global market,” an industry official said. Pulse News Korea