Samsung Electronics has scored a major win as it has bagged Verizon’s $6.64 billion order to provide wireless communication solutions to Verizon in the U.S. This is a significant development for the South Korean company in the fifth-generation network market.
Samsung said in a statement: “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,” Samsung said in a statement. According to a regulatory filing, the period of the contract is from June 30, 2020 to December 31, 2025.
Samsung has been pushing to increase its market share in the 5G equipment market and is looking to invest in the sixth-generation mobile networks. But the company has emerged as a big winner in a recent auction of U.S. airwaves.
“Samsung winning the order from Verizon would help the company expand its telecom equipment business abroad, potentially giving leverage to negotiate with other countries,” said Park Sung-soon, an analyst at Cape Investment and Securities.
In 2019, Samsung had a total market share of 3% in the global telecom equipment market.
In response to the news, Samsung Electronics’ shares rose 2%.