South Korean tech giant Samsung has clinched a network equipment supply deal with US carrier Verizon, the company publicly disclosed on Monday.
The contract for wireless telecommunication solutions between Samsung Electronics America and Verizon Sourcing LLC is worth around 7.9 trillion won, around $6.6 billion, the conglomerate said.
The size of the deal is equivalent to 3.43% of Samsung Electronics’ 2019 full-year sales of 230 trillion won. The contract will expire on 31 December 2025.
“We are pleased to expand our long-standing partnership with Verizon to advance their next-generation network evolution. 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,” Samsung said in a statement to ZDNet.
See also: US telecoms would spend $1.8 billion to replace ZTE, Huawei network equipment
“Samsung is a pioneer in mmWave, sub-6, and virtualised RAN innovation, and a leader in end-to-end 5G solutions — from chips to networks to devices. We’re excited to continue delivering on breakthrough network technologies that will expand what’s possible through 5G,” the company added.
Samsung’s network business was among the first to supply 5G network equipment to South Korean telcos when they commercialised their 5G networks in 2019.
The confirmed deal is likely Samsung Network’s biggest contract to date and larger than the business’ annual sales, which South Korean analysts put at around 4 to 5 trillion won.
However, sources within the company told ZDNet that sales of Samsung Network in 2020 have slowed compared to 2019 due to the impact of COVID-19 pandemic, but that the business is aiming for a turnaround starting in 2021.
Samsung is a founding member of the Open RAN Policy Coalition, a group largely thought to be an “anti-Huawei” coalition.