Samsung signed with Verizon the delivery contract of a 5G equipment for $6.6 billion

On September 7, 2020 it became known of the contract for $6.6 billion which was signed by Samsung and Verizon. Under the terms of the agreement, the South Korean company will supply to the American telecom operator the equipment for construction of networks of fifth generation (5G). The agreement is signed for five years — it expires at the end of 2025.

After the conclusion of this long-term strategic contract we will continue to expand borders of use of technology 5G for ensuring comfort of clients of Verizon, said in the statement of Samsung.

The analysts polled by CNBC consider that perspectives of Samsung in the global telecommunication market improved after introduction of the American sanctions against Huawei. The CEO of Verizon Hans Vestberg said earlier that the company does not use the equipment of Huawei. At the same time Verizon already bought products from Samsung. According to JP Morgan, Verizon is the biggest customer of Nokia.

Samsung signed with Verizon the delivery contract of a 5G equipment for $6.6 billion

Receiving Samsung of the order from Verizon will help the company to expand the business in the field of telecommunication equipment abroad, potentially giving the chance to conduct negotiations with other countries, - the analyst of Cape Investment and Securities Pak Sung-Su considers.

Samsung and Verizon are a participant of alliance of the companies under the name Open RAN Coalition who proclaims fight for development of the latest technologies, and including a 5G, "without threats of national security". This alliance which also includes the American, European, South Korean and Japanese companies (AT&T, Cisco, Microsoft, HP, Intel, Nokia, Telefonica, NTT, etc.), some observers consider some kind of consolidation against the growing influence of the Chinese telecommunication companies which, according to a number of the western countries, can pose a threat of their national security.^[1]

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