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| Samsung gets a multi-billion dollar deal |
Samsung signed a $ 6.6 billion contract with Verizon to help build a 5G network in the United States. This shows how the tech group has taken advantage of the Trump administration's targets against Chinese company Huawei.
The South Korean company announced that it has signed a contract to supply US telecom companies with wireless communications equipment. These components will be used for Verizon 5G communications services through the end of 2025.
The deal coincided with an increase in US sanctions against Huawei, when Washington last month banned the sale of all American technology chips to Chinese companies, taking a heavy toll on phones and devices. Huawei's fifth generation phones.
More companies are expected to contact Samsung to purchase 5G devices. Due to US quality restrictions imposed on Huawei and Nokia, there is no choice but to Samsung and Ericsson when Huawei and Nokia are excluded.
Samsung is expected to take advantage of Huawei's woes and expand its share in the global 5G market by gaining more orders in the US, Europe and the Middle East.
Huawei worked hard to make 5G networks known in the world when Washington pressured other countries to follow suit and ban the Chinese company.
Under increasing pressure from the US, countries like the UK and India are offering Huawei devices from their 5G infrastructure.
Samsung's global share of the telecom equipment market is relatively small at 3% in 2019, compared to 28% for Huawei, 16% for Nokia and 14% for Ericsson.
As global telecoms equipment manufacturers grapple for 5G dominance, the South Korean company has invested heavily in research and development.
Samsung believes that 5G is the main driver of future growth as the global smartphone market - one of the main sources of income - has ceased.
The group's commercial network has grown in importance as the Coronavirus pandemic impacts the global demand for their devices.
Samsung acquired a bunch of companies to boost its presence in (5G) and once said: Samsung plans to increase its market share to 20% by the end of this year.
Samsung has provided US operators with 4G and 5G network devices and is working with South Korean operators to develop a 5G business model.
The company increased its market share in South Korea, as the world's first commercial (5G) service was launched last April.