Chairman Lee Jae-yong's Global Sales Success... Additional 5G Equipment Contract in Japan

Leading Direct Negotiations for 28GHz 5G Equipment Supply to NTT Docomo
Key Role in Supplying to US Verizon and DISH Network

[Asia Economy Reporter Lim Hye-seon] Samsung Electronics is expanding its technological leadership in the overseas 5G telecommunications equipment market. The next-generation telecommunications business is a field where Samsung Electronics Chairman Lee Jae-yong is leading business development with long-term investments and a strategic vision. This achievement reflects Chairman Lee’s special dedication as he personally engages in global sales.

On the 30th, Samsung Electronics announced that following the signing of a 5G telecommunications equipment supply contract with Japan’s largest mobile carrier NTT Docomo in March last year, it will supply new base stations for NTT Docomo’s major 5G frequency bands through additional cooperation. The 5G products Samsung Electronics is providing to NTT Docomo this time include a new ultra-lightweight, ultra-compact 5G radio base station supporting the 28 GHz millimeter-wave band for the first time. This product weighs only 4.5 kg, making it easy to install in urban and densely populated areas, effectively supporting the increasing data traffic.

Japan is a country with one of the highest population densities worldwide, and its market prioritizes stable data communication and excellent service quality in urban and other densely populated areas. Through this additional 5G equipment order, Samsung has once again proven its 5G technological prowess in the Japanese market.

Leveraging Global Networks to Enter US and Japanese Telecommunications Equipment Markets

Chairman Lee has directly overseen and managed all areas?from dedicated organizational setup, research and development, to sales and marketing?to rapidly build Samsung Electronics’ capabilities to lead the 5G era. Since 2011, when 3G mobile communication became widespread and 4G services began, he instructed the establishment of a 'Next-Generation Telecommunications R&D Organization' dedicated to 5G technology research. Subsequently, he integrated the telecommunications technology research teams, which had been dispersed between the Wireless Business Division and the Network Business Division, into a 'Next-Generation Business Team' focused on the 5G business, supporting joint research and expanded cooperation with global companies to strengthen 5G telecommunications technology R&D.

A major asset of Samsung Electronics’ 5G network equipment business is Chairman Lee’s extensive 'global network.' The telecommunications equipment business involves large-scale contracts and serves as critical social infrastructure, making long-term commitments based on trust decisive for business success. Chairman Lee has personally negotiated and achieved results in large-scale telecommunications equipment contracts with major companies such as Verizon and DISH Network in the US, and NTT Docomo and KDDI in Japan. A Samsung Electronics official stated, "Chairman Lee Jae-yong actively engages with global ICT industry leaders and is working hard on the ground to pioneer the '5G telecommunications equipment' market."

Chairman Lee visited Japan in 2018 and 2019 to meet with major mobile carriers and lay the groundwork for expanding the 5G network business. The large-scale 5G long-term contract worth 7.9 trillion KRW with Verizon, the world’s largest mobile carrier, in 2020 is also largely credited to him. It is known that Chairman Lee personally met with Hans Vestberg, Verizon’s CEO, to discuss business cooperation and actively engaged in sales through multiple video calls. Recently, during negotiations for a 5G telecommunications equipment supply contract with the US DISH Network, Chairman Lee met directly with DISH Network Chairman Charlie Ergen and effectively concluded the negotiations after spending extended time hiking together.

Samsung Electronics 5G base station solution provided to NTT Docomo. (Photo by Samsung Electronics)

Proactive Preparation for '6G Telecommunications Technology' Since Two Years Ago

Chairman Lee is also proactively preparing for the '6G era,' which is expected to be fully commercialized in about ten years. He has emphasized, "Telecommunications, like vaccines, are important infrastructure, and proactive investment similar to vaccines is necessary to be able to use them effectively when needed." In May 2019, Samsung Electronics established the Next-Generation Communications Research Center under Samsung Research to conduct advanced research on 6G technologies. In July 2020, Samsung presented its vision for next-generation 6G mobile communications through the '6G White Paper.' Samsung Electronics has been leading 6G standard discussions as a member of the chairmanship in the International Telecommunication Union Radiocommunication Sector (ITU-R) and the 3rd Generation Partnership Project (3GPP), organizations that set international telecommunications standards. Samsung Electronics expects the mobile communications business to grow into a 'flagship business' in the Lee Jae-yong era.