Verizon’s $6.6 billion handshake with South Korea’s Samsung Electronics is being seen by analysts as a huge sign of faith between the two companies and the future of 5G development. The contract was inked last week, reports Yahoo Finance, and is quite a boost for Samsung’s networking gear operations.
“With this latest long-term strategic contract, we will continue to push the boundaries of 5G innovation to enhance mobile experiences for Verizon’s customers,” stated Samsung in an emailed announcement.
While Huawei still supplies much of the world’s telecommunication components, its influence is shrinking as countries like the United States and Australia fear security breaches and ban the use of their products. Samsung, however, is on the rise and is currently the world’s largest producer of memory chips and electronic support circuitry, according to the account. The company’s decision to tackle the global market has affected not only rival Huawei, but also leading players like Nokia and Ericsson.
A drop in Nokia stock in Helsinki has analysts speculating that Ericsson could unseat Finnish Nokia as the various companies jockey for market share. While details of the agreement between Verizon and Samsung have not yet been released, both companies are likely to benefit as they strengthen their positions in the 5G arena, reported Yahoo Finance.
Samsung’s agreement with Verizon runs through the end of 2025, and primarily covers 5G infrastructure, noted The Wall Street Journal.