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Samsung's $6.6B 5G deal with Verizon bodes ill for Nokia
1 Min Read
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.
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