Samsung bags $6.6 Billion 5G Verizon Deal; Beats Nokia, Ericsson (and well..Huawei)

According to the company, Samsung Electronics will develop 5G network infrastructure for Verizon Communications under a $6.65 billion deal. As per the filing, the contract will run through 2025. “Samsung has demonstrated their commitment to collaborating with us to drive innovation in 5G,” New York-based Verizon said in a statement. “We are excited to expand our relationship with them and benefit from a long-term strategic agreement.”

Samsung said that this partnership with Verizon will allow the companies to “push the boundaries of 5G innovation to enhance mobile experiences for Verizon’s customers.”

Samsung Beats Nokia, Ericsson

The South Korean technology giant, further, beat out rivals like Finland's Nokia, which has collaborated with Verizon in the past. The deal also marks one of Samsung’s biggest 5G contracts. Years ago, it had decided years ago to invest in networking and compete with global players - like Nokia Oyj and Ericsson - in providing telecom equipment.

This deal will 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. China's Huawei Technologies Ltd wasn't in the running for the contract.

Huawei has been largely absent from the U.S. since 2012, when a congressional panel warned phone carriers to avoid it. The U.S. says it’s a security risk to give China too much access to 5G systems. But we can't rule out the fact that China might have self-driving cars, factory robots and other applications very soon.

Samsung and Verizon have worked together before. In 2018 Samsung technology was behind a 5G home service of Verizon. It offered some customers the home service in California, Texas, and Indiana. The company also expressed its excitement. "We continue delivering on breakthrough network technologies that will expand what’s possible through 5G"; the company said in a statement.

Samsung is the world’s largest memory chip and electronics gadget maker. It has been pushing hard to expand its market share in the 5G equipment market. Moreover, it wants to be the first in investing in sixth-gen mobile networks. It didn’t provide further details about the Verizon deal.