Samsung Elec wins $6.6 billion Verizon order for network equipment
Samsung's global prospects for its network business have improved after US sanctions on Huawei
SEOUL (Reuters) - Samsung Electronics <005930.KS> said on Monday it had won a $6.64 billion (5.01 billion pounds) order to provide wireless communication solutions to Verizon <VZ.N> in the United States, a major win for the South Korean firm in the next-generation 5G network market.
Samsung’s global prospects for its network business have improved following U.S. sanctions on its bigger rival Huawei [HWT.UL], analysts said.
Verizon CEO Hans Vestberg told CNBC in July last year that Verizon does not use any Huawei equipment. Verizon had already been a Samsung customer before the order.
Verizon is believed to be Nokia’s <NOKIA.HE> biggest customer, JP Morgan research said in a July note.
"Samsung winning the order from Verizon would help the company expand its telecom equipment business abroad, potentially giving leverage to negotiate with other countries,” said Park Sung-soon, an analyst at Cape Investment and Securities.
The order is for network equipment, a Samsung spokesman said. The company declined to comment on detailed terms the contract such as the portion of 5G-capable equipment included.
