Samsung Electronics said it will supply 5G network equipment to US telecommunications giant Verizon for $6.6 billion.
Samsung said on Monday that it will supply network solutions, including 5G, for the next five years until December 2025.
The size of the deal is equivalent to 3.43 percent of Samsung Electronics’ sales of 230 trillion won 2019.
“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,” Korea-based Samsung said in a statement.
In addition to the US, Samsung has inked 5G equipment contracts in countries like Canada, New Zealand and Japan, reports Yonhap news agency.
Industry insiders said the deal with the top US telecom operator will serve as a reference for Samsung to secure more network solutions orders in other major markets.
The US is the world’s largest mobile telecoms market, with its network infrastructure Capex accounting for about a quarter of the global network investment.
With the US pressuring China’s Huawei Technologies, the top 5G equipment supplier in the world, over security reasons, industry observers predicted that Samsung can further expand its presence in the 5G equipment market.
Huawei was the leading player in the global 5G equipment market last year with 26.2 percent share, followed by Sweden’s Ericsson with 23.4 percent and Samsung with 23.3 percent, says IHS Markit.