Tech giant Samsung Electronics (005930) has announced having secured a contract worth $6.64 billion to supply U.S based telecommunication equipment company Verizon Inc. (VZ) with 5G network equipment.
Samsung is becoming a beneficiary of its competitor’s woes Huawei Technologies which has been banned from undertaking any 5G project in the United States by Trump’s administration due to spying allegations after the company was accused of using its infrastructure to spy for Beijing.
This contract goes down as the first major contract for Samsung in the next-generation 5G network market.
Mid last year the chief executive of Verizon Hans Vestberg, during a CNBC interview said the company does not use any Huawei equipment however the company has and still uses equipment from Samsung.
Samsung said it’s looking forward to capitalizing on this first major 5G order to grow and diverse its 5G portfolio.
“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,” said Samsung’s spokesperson.
A senior analyst at Cape Investment and Securities Park Sung-soon, believes this order will definitely grant Samsung a larger market and bargaining power in the 5G network market.
“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 the analyst.
