With the 5G commercialization coming up in March next year, Samsung Electronics is beefing up investment in the telecommunication equipment business. The Korean IT giant aims to rank in the top three in the global market in five years.
According to the industry on July 11, Samsung Electronics is extensively augmenting its network businesses. The related manpower in the Household Appliances Division and Video Display Division in the Customer Electronics Unit has moved to the Network Division. The network division also posted a job opening to recruit experienced workers for its 23 sectors.
According to the market research company HIS Market, Samsung Electronics had 3% share of last year’s global telecommunication equipment market, while Huawei took 28%, ranking first in the world.
Samsung Electronics thinks that it has a good shot at competing with Huawei in the 5G era. Recently, Kim Young-ki, head of the Network Division, said, “We are planning to solidify our position in the US and Japan leading the 5G commercialization race to increase the share up to a 20% level in 2021 and make top three five years later.” Samsung Electronics said, “We plan to finish developing a 100MHz range equipment to be used in the 3.5GHz band in September this year, and there will be no problem meeting the 5G commercialization deadline.”
The fact that Huawei’s US telecommunication equipment market entry is practically blocked due to US and China trade war may turn into a chance for Samsung. The US is focusing on 28GHz super high frequency band, where Samsung shows its strength. Samsung already has signed a contract with Verizon, the largest telecommunication company in US, for supplying 28GHz band’s 5G Fixed Wireless Access (FWA) equipment. Samsung is also running a 5G test service with AT&T and conducting a joint research on 5G with T Mobile.
Huawei entered the Korean market first in 2013, when it built LTE networks for LG U +, and since then, it has been targeting the Korean market with its technological strength in the 3.5GHz band, which is the main network the three Korean telecommunication companies use.