A few weeks after winning a $6.64 billion (about Rs 48,932 crore) order for telecom equipment from a mobile network operator, Samsung Electronics has signed Verizon as its first customer in the United States for its 5G products.
Recently a smaller player in the telecommunications equipment business, Samsung has gained ground in recent years and is challenging the dominance of Nokia and Ericsson in telecommunications gear.
China’s Huawei has also benefited from being barred from bidding for 5G contracts in the United States.
Samsung’s new 5G portfolio will help operators add coverage and capacity indoors, whether it’s users’ homes or factories and warehouses, Alok Shah, vice president of network strategy at Samsung, told Reuters.
He said the company is in talks with other US telecom operators.
Indoor coverage is important for 5G because the millimeter wave radio frequencies used by the likes of Verizon pose problems passing through walls or other obstacles. According to market research firm Dell’Oro, Samsung had a 3 percent market share in the total global telecom equipment market in 2019, with 28 percent followed by Huawei’s No. 1, Nokia’s 16 percent, Ericsson’s 14 percent, ZTE’s 10 percent and 28 percent. was behind Cisco’s 7 percent. group.
The South Korean company is positioning itself between traditional suppliers and those like Mavenir and Alteostar, which are using software to run network functions on the cloud called the Open Radio Access Network (RAN) while minimizing the use of physical equipment. .
Large suppliers are more protective of their current market share and smaller players who are emphasizing on the technology they don’t have at the moment. Samsung sits right in the middle, Shah said.
“We have the scale that we can tolerate, but we are also a challenge and we are very hungry and aggressive,” Shah said. “So far it has really been the secret sauce for us to bring both sides of that coin to the customers.”
© Thomson Reuters 2020
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