Samsung said on Monday it had won a US$6.64 billion order to provide wireless communication solutions to Verizon in the United States, a major win for the firm in the next-generation 5G network market.
The order is for network equipment, a Samsung spokesman said. The company declined to comment on detailed terms the contract such as the portion of 5G-capable equipment included.Advertisement
“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.
Samsung said in a regulatory filing the period of the contract, which Samsung’s U.S. unit signed with Verizon Sourcing LLC, is from June 30, 2020 to Dec. 31, 2025.
The deal marks one of Samsung’s biggest 5G contracts since Korea’s largest corporation decided years ago to invest in networking and compete with global players like Nokia and Ericsson in providing telecom equipment.
It should lift Samsung’s market share in the wireless industry at a time leader Huawei Technologies Co. is grappling with U.S. sanctions and Washington’s effort to get allies around the world to shut out the Chinese company.
