Samsung Lands $6.6b Deal with Verizon, Regulatory Filing Shows

Samsung Electronics America, Inc., a fully-owned subsidiary of Samsung Electronics Co., Ltd. signed a “radio network solution supply contract” with Verizon Sourcing LLC on Sept. 4, according to Samsung’s regulatory filing published on Monday. The deal is set to begin in June and run through December 2025, the filing reported.

The Samsung-Verizon deal follows a mid-August announcement from the White House and Department of Defense that the 3.45-3.55 GHz band would be made available for 5G network services. This was a crucial first step towards rolling out 5G networks, particularly in suburban and rural areas. The agreement also comes on the heels of the Federal Communications Commission’s investigation concerned with ascertaining the costs of removing two Chinese companies’ equipment from domestic telecommunications carriers’ networks, which it estimated to be $1.84 billion.

According to a CNet article by Steven Musil published Monday, the deal does much for Samsung’s ambitions to obtain a toehold in the 5G network market. The company is currently well behind Huawei Technologies Company, Nokia Corporation, and Ericsson, according to the CNet post.  

Samsung and Verizon reportedly lauded the decision. In a statement, Samsung said, “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.” A spokesperson for Verizon intimated the same, stating, “Samsung has demonstrated their commitment to collaborating with us to drive innovation in 5G and we are excited to expand our relationship with them and benefit from a long-term strategic agreement.”

CNet’s article stated that once operable, 5G will offer users a more responsive network and much faster service. According to the same source, it will also enable more connectivity and “real-time feedback.” The change will likely springboard fledgling technologies like “advanced augmented reality experiences” and self-driving cars, possibly ushering in a major paradigm shift, the article explained.