South Korea's Samsung Electronics Company announced on the 7th that it has signed a long-term network equipment supply contract with Verizon Telecom, the largest mobile communication operator in the United States, with a total amount of US $6.64 billion.
Yonhap reported that this is the largest single export contract of South Korea's communication equipment industry, equivalent to 3.43% of Samsung Electronics's sales last year. According to the contract, Samsung Electronics will provide Verizon with network solutions including 5g mobile communication equipment in the next five years, and undertake relevant installation and maintenance work.
"We are pleased to expand our long-term strategic partnership with Verizon to promote the next generation network transformation of Verizon," Samsung said in a statement to zenith. We will use this latest long-term strategic contract to continue to expand the boundaries of 5g innovation and enhance the mobile communication experience of Verizon customers. "
"Samsung's win of Verizon's order will help Samsung expand its telecom equipment business overseas and may add weight to its negotiations with other countries and regions," said Park Chunsheng, an analyst with Cape investment and securities
According to Yonhap, Samsung Electronics is expected to significantly increase its market share in 5g equipment, which also increases the possibility of expanding its business scale in Europe and other places.
Samsung Electronics insiders told Zhiding that due to the impact of the new crown epidemic, Samsung network equipment sales will slow down in 2019, but strive to reverse this situation from 2021.
In addition, Yonhap expects that the signing is expected to promote small and medium-sized cooperative enterprises of Samsung Electronics to increase sales and increase jobs. Samsung Electronics has 86 small and medium-sized equipment parts cooperative enterprises in South Korea, and its domestic parts of 5g equipment account for 40% to 60%.