Samsung and Verizon are taking the US telecom sector by storm

Samsung and Verizon are taking the US telecom sector by storm

Samsung secures a $6.6 billion deal for 5G gear

The week debuted with a deal between some of the world's largest telecom providers – Verizon, and electronics developers – Samsung.

Today, the South Korean company announced that it secured a $6.64 billion deal to provide equipment for wireless and #5G technologies that are under development at Verizon. The agreement didn't come as a surprise, given the fact that Verizon is already a customer of Samsung, and it didn't rely on any equipment provided by the infamous #Huawei.

Neither of the companies provided details about the latest deal, but according to Samsung's regulatory filing, the contract is valid until December 31, 2025.

The announcement comes as the Washington administration is relentless in restricting Huawei's access to the US market and technology. Just last month, the Commerce Department added another 38 Huawei affiliates to the Entity List, which means that they cannot receive American exports without a license.

Also, the UK government is making efforts to remove the Huawei 5G equipment from its infrastructure, and by 2027 wants all Huawei devices from the country's 5G infrastructure. Moreover, Vodafone is spending $236 million at a European level to extract Huawei from its operations.

Following the Samsung release that read,"We are pleased to expand our long-standing partnership with Verizon to advance their next-generation network evolution. 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," the companies' stock prices traded differently. Samsung gained more than 1%, while Verizon lost 0.21%.

Sources: asia.nikkei.com, seekingalpha.com, finance.yahoo.com


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