Employees walk past a Samsung sign in Seoul, South Korea. Picture: REUTERS/KIM HONG-JI
Employees walk past a Samsung sign in Seoul, South Korea. Picture: REUTERS/KIM HONG-JI

Seoul — Samsung Electronics won a 7.9-trillion won order to provide fifth-generation wireless solutions to Verizon Communications in the US, a big win for the electronics giant’s networking gear business.

The contract was finalised on Friday and is valid from June 30 through December 2025, it said in a regulatory filing.

The deal is one of Samsung’s biggest 5G contracts since Korea’s largest corporation decided years ago to invest in networking and compete with global players such as Nokia Oyj and Ericsson in providing telecom equipment. It should lift Samsung’s market share in the wireless industry as  leader Huawei Technologies grapples with US sanctions and Washington tries to get allies around the world to shut out the Chinese group.

Nokia’s share price fell as much as 2.5% on Monday in Helsinki. Liberum analyst Janardan Menon cited past evidence that the Finnish telecom gear giant was losing share at the largest US carrier to Ericsson, possibly  hampering its longer-term investment in technology.

“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.

Samsung, the world’s largest memory chip and electronics gadget maker, has been pushing hard to expand its market share in the 5G equipment market and investing in sixth-generation mobile networks. The company did not  provide further details about the Verizon deal. The US carrier gained much-needed mid-band spectrum for its 5G rollout after emerging among the top winners in a recent US airwaves auction.

Bloomberg

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