Samsung Electronics has recently signed up Verizon as their first customer in the US for indoor 5G gear which will help increase indoor coverage. The decision came after winning a $6.64 billion order from the mobile network operator.
Although Samsung was a small player in the telecom equipment industry, now it is challenging the existing business of Ericsson and Nokia in telecom products. The company has gained its unique position in the telecom market.
The company is also enjoying benefits from Huawei after it got banned from distributing 5G products in the United States. The Chinese company Huawei was barred from the 5G contract because of privacy issues. This proved to be a plus point for Samsung as they are hogging all the opportunities.
The new 5G network by Samsung will help network operators to increase indoor capacity and coverage. Whether it be warehouses, factors, or homes, they will all be benefitted from the Samsung 5G network. This was stated by Alok Shah who is the Vice President of Samsung’s Network Strategy.
He also said that the company is currently discussing things with other telecom operators in the US.
Indoor coverage is extremely important for the 5G network to be successful. The problem is that the millimeter-wave radio frequency of Verizon and other similar companies faces difficulties in passing through walls.
In 2019, Samsung had around 3% of the total market share of the global telecoms product market. Other companies like Huawei had 28%, while Nokia had 16% and Ericsson had 14%. According to Dell’Oro Group, ZTE’s had 10% of the market share and Cisco’s had 7%.
Samsung is planning to place itself between the major suppliers and the ones like Altiostar and Mavenir. These companies are making use of software to operate network functions on the Open Radio Access Network while cutting down on the use of physical products.
Larger suppliers are very much serious about their current market share. As far as smaller companies are concerned, they are trying to adopt the technology, but are lacking in skills. According to Shah, Samsung fits right in the middle.
He also said that they are very hungry for success. They are also challenging others and are very aggressive in their approach. This strategy has worked for them so far and they have been able to provide both sides of that coin to users.