Verizon Opts For Samsung 5G Equipment

Samsung Electronics has won a $6.64 billion order from Verizon to supply it with 5G equipment in the United States.

Verizon Wireless of course is the largest mobile operator in the United States, with a customer base of roughly 119 million.

The news that Verizon opted to use 5G equipment from Samsung, is being viewed as a blow to the US ambitions of Scandinavian networking giants Nokia and Ericsson, as well as a big win for the South Korean electronics giant.

5G contract

Huawei of course has already been ruled out by US officials of supplying 5G equipment to American mobile operators on national security grounds.

In February this year Huawei hit Verizon with a lawsuit alleging that it had used 12 of its networking, security and video comms patents without authorisation.

The Chinese firm is seeking compensation, as well as ongoing royalty payments.

But this week Samsung confirmed in a regulatory filing that it will install and maintain equipment for Verizon.

The order was finalised on 4 September and runs from 30 June 2020, right though to 31 December 2025.

“Samsung Electronics America Inc., a fully-owned subsidiary of Samsung Electronics Co., Ltd, signed a radio network solution supply contract with Verizon Sourcing LLC on September 4, 2020,” the statement said.

Spectrum auction

The contract award comes after the Trump administration in August unveiled a plan to free up 100 megahertz of spectrum currently being used by the US military, for commercial 5G service.

According to the White House, the Federal Communications Commission (FCC) will be able to auction this spectrum to companies like Verizon and AT&T from December 2021.

The US military reportedly used the spectrum for critical radar operations including air missile defense.