(Bloomberg) -- Samsung (LON:0593xq) Electronics (OTC:SSNLF) Co. won a 7.9 trillion won ($6.6 billion) order to provide fifth-generation wireless solutions to Verizon Communications Inc (NYSE:VZ). in the U.S., a big win for the electronics giant’s networking gear business.
The contract was finalized Friday and is valid from June 30 through December 2025, it said in a regulatory filing.
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 (NYSE:NOK) and Ericsson (BS:ERICAs) 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.
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“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,” the company said in an emailed statement.
Samsung (KS:005930), the world’s largest memory chip and electronics gadget maker, has been pushing hard to expand its market share in the 5G equipment market and investing in sixth-generation mobile networks. The company didn’t provide further details about the Verizon deal. The U.S. carrier gained much-needed mid-band spectrum for its 5G rollout after emerging among the top winners in a recent U.S. auction of airwaves.
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