OLD Media News

Verizon awards $6.6-bln 5G contract to Samsung

Verizon has picked Samsung to build a 5G infrastructure in a $6.6-billion deal.

Dee-Ann Durbin reported the news for the AP:

Samsung Electronics Co. will develop 5G network infrastructure for Verizon Communications under a $6.65 billion deal announced Monday.

The contract runs through 2025, according to a Samsung corporate filing.

Samsung and Verizon have worked together before. In 2018, for example, Samsung technology was behind a 5G home service that Verizon offered to some customers in California, Texas and Indiana.

The Wall Street Journal’s Elizabeth Koh wrote:

The Verizon deal could help bolster Samsung’s credibility with carriers in an important year for 5G rollouts, especially in the U.S., analysts said. Adoption of the next-generation technology is expected to expand significantly after the expected launch later this year of Apple Inc.’s first 5G-enabled phone.

Global adoption of the next-generation phones has been delayed by the coronavirus pandemic. Handset makers are already dropping prices for 5G devices, looking to entice skeptical buyers.

Supantha Mukherjee from Reuters noted:

Major telecom firms such as Verizon uses several suppliers for building various parts of a network with radio contracts accounting for a big part of the spending.

Liberum analyst Janardan Menon said the contract loss could impact Nokia’s ability to invest in technology at the same rate at its competition, and rival Ericsson might have even increased its share at Verizon. Liberum has a “hold” rating on Nokia shares.

Irina Slav

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