A few weeks after receiving a $6.64 billion (approximately 48,932 crore) telecom equipment order from a mobile network operator, Samsung Electronics has signed a Verizon agreement with Verizon, becoming its first customer for 5G products in the United States.

Samsung is only a small player in the telecommunications equipment business, but it has developed in recent years and is challenging the dominance of Nokia and Ericsson in the field of telecommunications equipment.

It also benefits from China’s Huawei being banned from bidding for 5G contracts in the United States.

Alok Shah, Samsung’s vice president of network strategy, told Reuters that Samsung’s new 5G product portfolio will help operators increase indoor coverage and capacity, whether it is in users’ homes or factories and warehouses.

He said that the company is negotiating with other US telecom operators.

Indoor coverage is critical for 5G, because the millimeter-wave radio frequency used by companies such as Verizon can have problems when passing through walls or other obstacles. According to market research firm Dell’Oro, Samsung accounted for 3% of the total global telecommunications equipment market in 2019, second only to Huawei’s 28%, Nokia’s 16%, Ericsson’s 14%, ZTE’s 10% and Cisco’s 7%. group.

The South Korean company positions itself between traditional vendors and vendors such as Mavenir and Altiostar, which use software to run network functions on a cloud called the Open Radio Access Network (RAN), thereby reducing the need for physical equipment. usage of.

Larger suppliers can better protect their current market share, while smaller suppliers that are constantly advancing at the limits of technology do not currently have this skill. Shah said Samsung is in the middle.

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Shah said: “We have a sustainable scale, but we are also a challenger. We are very hungry and enterprising.” “So far, this is our secret sauce to bring both sides of the coin to our customers.”

© Thomson Reuters 2020

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