Samsung's $6.6B 5G deal with Verizon bodes ill for Nokia

A 5G deal with Verizon valued at $6.6 billion will establish Samsung as one of the main suppliers of radio equipment to the operator that is still North America’s largest.

Following recent speculation Verizon was courting Samsung as a replacement for Nokia, it also bodes ill for the struggling Finnish vendor.

Other than the contract value and timeframe, Samsung provided few details in a short regulatory filing published on its website this morning: Signed on Friday, the deal runs until the end of 2025 and is therefore worth about $1.2 billion annually.

That is about 7% of what Sweden’s Ericsson makes each year in network sales. Samsung, moreover, was quick to note the entire 5G contract equals 3.43% of its annual revenues. 5G awards do not come much bigger.

Unsurprisingly, Samsung’s share price rose 1.62% in South Korea today after the public disclosure.

Better known for its chips and line-up of consumer electronics, the company has been trying to position itself as a 5G networks alternative to Ericsson, Nokia and Huawei, a Chinese vendor out of favor in Western markets.

The Verizon deal is further proof that major carriers outside Samsung’s domestic market now take it very seriously.

To read the complete article, visit Light Reading.