South Korean tech giant Samsung publicly disclosed Monday that it has reached a deal with U.S. carrier Verizon to supply network equipment,media ZDNet reported. The group said the contract between Samsung Electronics USA and Verizon Sourcing LLC for wireless telecommunications solutions was worth about 7.9 trillion won, or about $6.6 billion.
The deal is equivalent to 3.43 percent of Samsung Electronics’ full-year 2019 sales of 230 trillion won. The contract expires on 31 December 2025.
“We are pleased to expand our long-term relationship with Verizon to advance their next-generation network evolution,” Samsung told ZDNet in a statement. With this latest long-term strategic contract, we will continue to push the boundaries of 5G innovation to enhance the mobile experience for Verizon’s customers. “
The company added: “Samsung is a pioneer in innovation in mmWave, sub-6 and virtualized RAN, and a leader in end-to-end 5G solutions , from chips and networks to devices. We are pleased to continue to offer breakthrough networking technologies that expand the possibilities through 5G. “
Samsung’s network business was one of the first to offer 5G network equipment to South Korea Telecom when it commercialized its 5G network in 2019. The confirmed deal is likely to be Samsung’s biggest contract to date and larger than the business’s annual sales, which South Korean analysts believe are about 4 to 5 trillion won.
However, an insider told ZDNet that Samsung’s network sales will slow in 2020 from 2019 due to the COVID-19 pandemic, but the company aims to turn a profit from 2021.
Samsung is a founding member of the Open RAN Policy Alliance, which is largely considered an “anti-Huawei” alliance.