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Samsung Set To Earn From Huawei’s Troubled Network Gear Business

Samsung Electronics is working to consolidate its position in the telecom equipment business. Many potential customers are taking notice of Samsung’s efforts in building the 5G networks. The Korean giant is in a bid to capitalize on the security fears against the Huawei. Samsung is making efforts to bridge the gap between demand of 5G apparatus. They are reshuffling various employees and managers to assist them in building their network division more powerful.

The company is working to compete against big players like Ericcson, Huawei, and Nokia. Talking to Reuters, a company representative told that many industry insiders and potential customers are overwhelmed with the pace that the company is investing in developing 5G networks. A French carrier Orange’s chief technology officer, Mari-Noëlle Jégo-Laveissière, visited the premises to see the development and was quite happy and surprised to see the advancements.

From the past sometimes, Orange is working with Huawei in 27 markets as their most important partner in providing the network equipment. Now, Orange has joined hands with Samsung to test 5G across different locations. Even though, the South Korean Prime Minister Lee Nak-yeon made a visit to Samsung’s network division last month. It is believed the Samsung officials asked the minister to coordinate with the Korean giant in recruiting high-level engineers.  “We need more software engineers and want to work with the government to find that talent,” Lee was quoted as saying by government officials at his meeting with the prime minister.

It is quite good news for the countries which were looking for alternates to test 5G networks after US allegations on Huawei. It will allow them to test 5G networks without any constraint with the help of Samsung. Well, the company has not detailed any figures which would enable us to estimate the loss and growth of the business. But as a total, Samsung is keen on investing $22 billion in bolstering the 5G mobile technology in the upcoming three years. “We’re bolstering our network business to seize market opportunities arising at a time when Huawei is the subject of warnings about security,” said one of the Samsung sources.

Mainly talking about India, Samsung sources claimed that they are in talks with Reliance Jio, India’s largest 4G telecom operator to upgrade its network to 5G. Samsung official claimed that 5G is not quite a far way in India.

Moreover, in the US, Samsung already has Verizon Communications, AT&T Inc and Sprint Corp in their wardrobe for supplying network equipment.

Overall, Samsung is going to profit a lot if they make the correct moves in the upcoming few years. Samsung’s network business had already made the company earn around 870 billion won ($775 million) last year. Further, Nokia and Ericsson have made $1.4 billion and $2.1 billion last year.

Additionally, Huawei is battling the allegations made by the United States which could enable Chinese agencies to spy. The US has also barred its allies from using the Huawei apparatus in testing the next-gen 5G technologies. In response, New Zealand, Australia, Germany, and a few other countries have pulled off talks with Huawei in bringing 5G technology. Well, some good news is also present for Huawei, countries such as Thailand, Canada and India are working together with Huawei in testing 5G networks. – Gizmo China

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