Samsung wins US$6.6 billion 5G Verizon deal while Huawei struggles

The Verizon deal marks one of Samsung’s biggest 5G contracts since the Korean electronics giant decided years ago to compete in the telecoms network gear market

It comes at time when market leader Huawei is grappling with US trade sanctions and Washington’s effort to get the company shut out of 5G projects around the world

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A crew from Verizon Communications installs 5G mobile network equipment on a tower in Orem, Utah, on December 3, 2019. Photo: Reuters

Published: 1:37pm, 7 Sep 2020Updated: 6:28pm, 7 Sep 2020

Samsung Electronics has won a 7.9 trillion won (US$6.6 billion) order to provide 5G wireless solutions to Verizon Communications in the United States, a big win for the South Korean giant’s networking gear business.

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

It marks one of Samsung’s biggest 5G contracts since Korea’s largest company decided years ago to invest in networking technology development and compete with global players like Nokia and Ericsson in providing telecommunications equipment.

The Verizon deal should lift Samsung’s market share in the global wireless network gear market at a time industry leader Huawei Technologies is grappling with US trade sanctions and Washington is making efforts to get allies around the world to shut out the Chinese company, the world’s biggest telecoms equipment vendor.

Nokia’s shares fell as much as 2.5 per cent on Monday in Helsinki. Liberum analyst Janardan Menon cited past evidence that the Finnish telecoms gear giant is losing share at the largest American carrier to Ericsson, potentially hampering its longer-term investment in technology.