Samsung

Samsung Electronics secures USD 6.6 Billion Verizon Deal For Supply Network Equipment

Samsung Electronics has signed a USD 6.64 billion deal with Verizon Communications Inc. The deal is for providing wireless communication solutions for the 5G network market in the United Stations. Finnish telecom company Nokia was among the close contenders for the project but lost out to Samsung. With the latest project, Samsung has reinforced it position against its competitors Ericsson and Nokia in selling telecom gear. The development comes after the United States issued sanctions on its bigger rival Huawei of China. The sanction has barred Huawei from bidding for in America. Verizon has been a customer of Samsung and its CEO Hans Vestberg had said in July last year that Verizon does not use any Huawei equipment.

The loss for Nokia comes a time when the company has a new Chief Executive Officer at the helm. Pekka Lundmark took the top post in August. However, sources said that the discussion for the project was going on even before he took charge. A spokesperson from the telecom firm has declined to comment on the loss. According to a report in JP Morgan in July, Verizon was believed to the biggest customer of Nokia. The spokesperson said that Nokia plays a critical role in enabling the 3G and 4G networks of Verizon and it will continue to work with the company to accelerate innovation in 5G.

Telecom firm Verizon has several suppliers for the construction of various parts of a network. According to analysts, Nokia’s loss of contract can impact its ability to invest in technology. At the same time, rival Ericsson might have increased its share at the company. But no official remarks have been made by the company so far. The next generation 5G wireless of Verizon is expected to enable high speed video transmissions and self-driving cars. The Trump administration had last month unveiled its plans to auction off spectrum for commercial use. It was previously dedicated only for military purposes.

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