Samsung to Supply $8 Trillion 5G Equipment to US Verizon... Largest Export Deal Ever

[Asia Economy Reporters Hyewon Kim and Jinju Han] Samsung Electronics has secured a 5G communication equipment and network solution contract worth nearly 8 trillion KRW from Verizon, the No. 1 mobile carrier in the United States. This is the largest single export contract in the history of the domestic telecommunications equipment industry and a remarkable achievement 20 years after entering the U.S. telecommunications equipment market with 2G technology. Samsung Electronics' next-generation telecommunications equipment business has taken a monumental first step as Vice Chairman Lee Jae-yong's first solo masterpiece following the legacy of 'semiconductors.'

On the 7th, Samsung Electronics announced through a public disclosure that it had signed a long-term supply contract worth 7.9 trillion KRW for wireless communication network equipment with Verizon. Samsung will supply and install network solutions, including 5G equipment, to Verizon for five years and will also be responsible for maintenance and repair. Verizon, the No. 1 operator in the U.S., has 183 million subscribers. ▶Related article on page 3

This contract is regarded as a milestone for Samsung Electronics' full-scale entry into the world's largest 5G market, the United States. It marks the company's rise as a key equipment supplier 20 years after entering the U.S. market, known as the birthplace of the mobile communication industry. It is especially significant because Samsung has been recognized for trust in all aspects of technology and security. Based on its achievements in the U.S., the possibility of additional orders from other regions such as Europe has increased.

With Vice Chairman Lee's strong determination, Samsung has made large-scale investments in next-generation communication fields and is building a global ecosystem for ultra-fast, ultra-low latency, and hyper-connected communication services. Last year, Samsung Electronics succeeded in the world's first commercialization of 5G with the three domestic mobile carriers and achieved visible results by signing 5G supply contracts with Verizon, AT&T, and Sprint in the U.S. In Japan, Samsung signed an equipment contract with KDDI and launched 5G commercial services in March. This means Samsung has virtually dominated 5G commercialization in Korea, the U.S., and Japan.

It is expected to fill the export gap caused by the COVID-19 pandemic and contribute to expanding sales and job creation for small and medium-sized partner companies. An industry insider said, "It can play a key role in revitalizing the sluggish domestic economy not only through increased investment, production, and employment in the telecommunications industry but also through increased investment in related industries."