Lee Jae-yong with a 10-Year Vision... Also Succeeded in the Telecommunications Equipment Business

Samsung Signs 1 Trillion KRW 5G Network Equipment Supply Contract with US Dish Network

Samsung Electronics Vice Chairman Lee Jae-yong is returning to Korea on the 24th through the Seoul Gimpo Business Aviation Center at Gimpo Airport in Gangseo-gu, Seoul. Vice Chairman Lee, who departed on the 14th, is reported to have held various discussions with key executives of major local companies during his visit to the United States, his first in five years. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Lim Hye-sun] "No company can guarantee what will happen in 10 years. We must not waver and must carry out investments for the future without any setbacks."

Samsung Electronics Vice Chairman Lee Jae-yong's bold investments and global leadership have paid off in the telecommunications equipment business. On the 5th, Samsung Electronics announced that it had signed a 1 trillion won contract to supply 5G telecommunications equipment with DISH Network, the fourth mobile carrier in the United States. This order is the second largest scale in Samsung Electronics' 5G telecommunications equipment supply in the U.S., following the 7.9 trillion won contract with Verizon in September 2020.

Lee Jae-yong Nurtured Telecommunications Technology from 4G

Samsung Electronics has selected AI, foundry, system semiconductors, bio, and 5G as its future growth businesses and is fostering them. In particular, Vice Chairman Lee personally oversaw everything from organizational structure to marketing for 5G. Since 2011, when 4G service began, he ordered the establishment of a 'Next-Generation Communications R&D Organization' dedicated to 5G technology research. He integrated the telecommunications technology research organizations that were dispersed between the Wireless Business Division and the Network Business Division into an expanded 'Next-Generation Business Team' dedicated to the 5G business and provided full support for 5G telecommunications technology research and development.

Vice Chairman Lee's 'global network' is also actively utilized in the business. Reliance Jio, India's largest telecommunications company, currently uses 100% Samsung base stations for its nationwide LTE network. Lee was the only domestic company executive invited to the weddings of Mukesh Ambani, chairman of Reliance Group's children. He has maintained a steady friendship with Hans Vestberg, CEO of Verizon, since Vestberg's days as CEO of Ericsson, the Swedish telecommunications equipment manufacturer. As a result, Samsung Electronics succeeded in signing a large-scale 5G equipment supply contract with Verizon. He also directly penetrated the Japanese market. Vice Chairman Lee met with major Japanese mobile carriers such as NTT Docomo and KDDI to lay the foundation for expanding the 5G network business in Japan.

Will Samsung Escape the Perennial 5th Place?

According to market research firm Mobile Experts, Samsung Electronics ranked 5th in the global telecommunications equipment market last year with an 8.0% market share. The top four were Ericsson (26.9%), Nokia (21.9%), Huawei (20.4%), and ZTE (14.5%). Industry insiders widely expect that with this order, Samsung Electronics' global telecommunications equipment market share will surpass the double-digit barrier.

Vice Chairman Lee said, "Telecommunications, like vaccines, are important infrastructure that requires proactive investment so that it can be used effectively when needed," and established a 6G-related team two years ago. On the 13th, Samsung will hold the first-ever 'Samsung 6G Forum,' where global experts on 6G will discuss and share future technologies to expand the base of future telecommunications technology and strengthen competitiveness. Experts such as Jeffrey Andrews, a professor at the University of Texas at Austin, will give lectures and exchange opinions on future technologies including 6G transmission and reception technology and 6G intelligent networks.