Samsung Electronics is expanding its territory in the 5th generation (G) communication equipment market by taking advantage of the US’ Huawei sanctions. Samsung Electronics announced on the 23rd that it has signed a 5G communication equipment supply contract with NTT DoCoMo, Japan’s largest mobile communication company. The exact contract amount or schedule was not disclosed. NTT DoCoMo is Japan’s number one telecommunications company with 82 million subscribers (43%) as of the end of last year. In terms of sales (2019), it ranks fifth in the world after Verizon (US), China Mobile (China), AT&T (US), and T-Mobile (US). Samsung Electronics signed a contract with KDDI, Japan’s second largest telecommunications company in 2019, and began commercializing 5G in Japan in March last year.
Signed a contract with Big 5 in the world with 82 million subscribers
Green light to increase the share of communication equipment
Seizing the 5G market in India is the biggest key
Global 5G communication equipment market share last year. Graphic = Kim Hyun-seo [email protected]
According to market researcher Del Oro, Samsung Electronics ranked fifth with 7.1% of the global 5G communication equipment market in the fourth quarter of last year. China’s Huawei (31.4%) is the No. 1 spot. This was followed by Ericsson in Sweden (28.9%), Nokia in Finland (18.5%), and ZTE in China (10%). Huawei’s share soared to 43.7% in the second quarter of last year, but it has declined after US sanctions. Ericsson and Nokia took a large part of the resulting reflection profit.
Samsung Electronics is also fighting back with success in successive successive orders for large orders recently. In September of last year, Samsung Electronics signed a contract to supply 5G mobile communication equipment and network solutions worth 8 trillion won with Verizon, the largest mobile communication company in the United States. It is the largest in the history of domestic telecommunication equipment with a single export contract. In February, it signed a 5G·4G equipment supply contract with US Cellular, the fifth largest telecommunications company in the United States. In addition, on the 16th, it won a business to supply 5G and 4G (LTE) mobile communication base stations and virtualization core equipment to Sasquet, Canada.
Despite these achievements, the outlook for Samsung Electronics’ communication equipment market is not as bright. Huawei’s status is still strong despite US sanctions, and the walls of’Big 3’such as Ericsson and Nokia, who have properly dug into the gap, are high. Experts say that Samsung Electronics should continue to target the North American market based on its proven ability through a contract with Verizon in the United States. It is also advised that it is necessary to look forward to the 5G market in India, which will be held from next year. Noh Geun-chang, head of Hyundai Motor Securities Research Center, said, “European telecommunications companies are highly likely to join hands with local companies Ericsson and Nokia, and Huawei and ZTE, the world’s largest 5G market, are held by Samsung Electronics. We will be able to increase our presence in the field of equipment.”
Reporter Park Hyung-soo [email protected]
