Samsung and Verizon’s New Deal Well Worth Over $6 Billion

A Samsung storefront.

Samsung will continue to play a major role in 5G’s development as it signs a multi-billion dollar deal with Verizon.

The largest manufacturer of electronics in South Korea has signed a network deal valuing $6.65 billion with Verizon. The deal will position Samsung to supply radio equipment and services through the year 2025 with a focus that looks to be on 5G RAN gear. This is welcomed news on the American front as it continues to feud with Chinese companies Huawei and ZTE due to security concerns. Samsung will look to work alongside such brands as Ericsson and Nokia to usher in the latest generation of wireless.

Verizon’s Vice President of Networks Strategy, Business Development, and Marketing, Alok Shah, said in a statement, “We are pleased to expand our long-standing partnership with Verizon to advance their next-generation network evolution. 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.” He continued, “Samsung is a pioneer in mmWave, sub-6 and virtualized RAN innovation, and a leader in end-to-end 5G solutions – from chips to networks to devices. We’re excited to continue delivering on breakthrough network technologies that will expand what’s possible through 5G.”

This move should come as no surprise as reports from earlier this year revealed that Verizon has been considering making the change from Nokia to Samsung for some time now. Still, the wireless giant will be using multiple vendors as it continues its lofty 5G ambitions and may still look to Nokia for other components. But the opportunity for Samsung is just the latest in a string of moves to infiltrate the American market even further.

The lack of American companies and feuding with China is creating a lot of opportunity for Samsung. It already works with AT&T and U.S. Cellular in America and internationally Samsung has its hands in Canada, Japan, and other countries. Will its next move be Europe? This is a question on everyone’s mind as the company’s lack of presence in the continent is quite noticeable. How it handles itself in America could pave the way for more opportunities throughout European markets. Even analysts are seeing its moves in America as a sign of legitimacy with Joe Madden, an industry analyst saying, “Samsung has now become a credible third option.”

The deal comes after a summer that saw Verizon gain a large number of licenses for mid-band spectrum at the FCC auction can be used to bolster its 5G network. Samsung has plenty of experience in this realm as it already has tens of thousands of mid-band capable radios deployed in its home country of South Korea. More spectrum is on the way as December approaches and with it, another FCC auction. Will Verizon finally “flip the switch” on its nationwide 5G network with the help of Samsung and additional spectrum? For now, we must wait and see how and when the leader in 5G devices sold decides to unleash its 5G network.

Source: Fierce Wireless