Samsung Secures Major Network Deal in the US

Samsung secured a multi-year $6.6 billion contract from US-based network provider Verizon. It is a major win for the South Korean vendor against established rivals in mobile services market. The contract with Verizon is Samsung Network’s largest ever, with the deal representing 3.43 percent of the company’s entire revenue in 2019.

The electronics giant said its US subsidiary signed a deal with Verizon or the purchase, installation and maintenance of wireless equipment including 5G gear. The contract runs from 30 June 2020 to 31 December 2025. In early July, US media speculated the operator was lining up a RAN deal with Samsung. Verizon also uses RAN equipment from Ericsson and Nokia, but the huge move to Samsung gear could come at the expense of the latter, which would be major blow for the Finland-based vendor in the US market.

Samsung signed a commercial agreement with for 5G and LTE equipment with US Cellular in February, and is clearly becoming a major player in a market where Chinese vendors Huawei and ZTE are banned. The vendor is already a major 5G supplier for South Korean operators and is tipped to gain market share globally due to a growing list of blocks the on Chinese vendors.

The news sow unrest in Nokia. The CEO of Nokia’s largest shareholder derided the vendor’s former management as having been a burden on the company. Antti Makinen, CEO of Finnish state-owned fund Solidium, said despite failing to meet the investor’s expectations in recent times, he had high hopes for the vendor’s prospects going forward. Although the direct impact of this deal on Nokia is unclear, it does signal a major contract from one of its customers going to a direct rival. It also followed speculation earlier in the year questioning Nokia’s position with the US operator.