Verizon has picked Samsung to build out its 5G network

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As US firms aren’t allowed to purchase 5G tech from Huawei to build out future networks, the big question many in the industry had was which firm US networks would opt for.

This morning we learned one of the possible answers and it’s not Nokia or Ericsson.

According to a report by Bloomberg, Samsung has won a $6.6 billion contract to provide 5G for Verizon in the US.

Now, this is not all that surprising. Samsung has a rather strong network business so it’s not as if Verizon is opting to work with a small firm. It is surprising that Samsung beat out Ericsson and Nokia though.

Following Huawei’s woes with the US and President Donald Trump’s push to get more countries to turn their back on the Chinese firm, the US market has been primed for another player to take the top spot.

By all accounts, that player appears to be Ericsson (although Huawei is still dominating in other areas of the world) with Nokia being the second biggest 5G firm.

Samsung meanwhile occupies the bottom of the charts in terms of market share, only beating out ZTE, which makes Verizon’s announcement all the more strange.

That having been said, Verizon is a massive network and building out the capacity needed to bring 5G to its subscribers is likely a massive cost undertaking.

Perhaps Samsung offered Verizon a competitive deal that the bigger players couldn’t match?

One thing we are curious to see is how this announcement affects the global market and whether Verizon’s confidence in Samsung will help boost the South Korean firm’s market share.

Brendyn Lotz

Brendyn Lotz

Brendyn Lotz writes news, reviews, and opinion pieces for Hypertext. His interests include SMEs, innovation on the African continent, cybersecurity, blockchain, games, geek culture and YouTube.