Both Samsung and Nokia are competing for deals to provide Verizon with 5G equipment. This operator is the largest in the United States, followed by T-Mobile and AT&T. This will be a huge achievement for a company that wins business from Verizon.
Bloomberg reported that people close to the situation said that Samsung was the company. The value of the contract is believed to be US$6.64 billion.
Samsung beats Nokia with a $6.64 billion 5G supply contract
Huawei is the world’s largest supplier of 5G network equipment, but because of its ties with the Chinese Communist government, it has been banned from supplying products to American telecom companies.
The Trump administration also warned American companies not to use Huawei’s network equipment to build their country’s 5G network. Some countries such as Japan and Australia have also heeded this warning.
The UK initially allowed the use of certain Huawei network equipment, but Prime Minister Boris Johnson seemed to have changed his mind. It is said that Huawei parts will be removed.
Considering that Nokia is the world’s three largest network equipment supplier, Samsung’s so-called victory is a surprising surprise. Nokia’s rival Ericsson may take advantage of Samsung’s rumored victory by increasing its business with Verizon.
A Nokia spokesperson declined to comment on the supplier’s loss, but Nokia said in a statement that it still has a relationship with the wireless supplier.
The spokesperson said: “We play a key role in supporting Verizon’s 3G and 4G networks and continue to work with them to accelerate 5G innovation.” “They are still the world’s top three customers.” Like other operators, Verizon also Uses multiple vendors to help build 5G networks. A large part of these expenditures is used to purchase the radios necessary for these networks to work properly.
Rumors go back to July, which indicates that Verizon will reduce its reliance on Nokia as the main radio access network (RAN) and will switch to Samsung.
If those points close to the story are correct, that is exactly what happened. Samsung is the world’s 5th-largest network infrastructure supplier, and it will get a big boost through the deal with Big Red.
Verizon is using the mmWave 5G spectrum to build its 5G network. These high-frequency signals do not travel that far and are easily blocked by structures. But they do provide a high download data speed.
The characteristics of the mmWave spectrum explain why Verizon’s 5G network takes longer than T-Mobile and AT&T’s low-band 5G networks, both of which are currently available nationwide.
To compensate for the slower data speeds provided by low-band 5G, T-Mobile hopes to rely on the 2.5GHz mid-band spectrum it acquired when it purchased Sprint earlier this year.
Although it is difficult to obtain a mid-band spectrum in the United States, Verizon recently opened its wallet and spent $1.9 billion to win the mid-band spectrum in the 3.5 GHz range.
Verizon recently stated that it will build and operate its nationwide 5G network before the end of this year. For Verizon, access to this mid-band spectrum is very important, because, without it, T-Mobile and AT&T will make full use of their substantial time advantage in providing 5G from coast to coast.
Ultimately, all three major US operators will use a variation of the same layered cake strategy. Low-band signals cover most of the United States; mid-band spectrum allows rural areas in the United States to be connected to 5G, and high-band mmWave signals are used in urban environments.