In a big win for its networking business, Samsung Electronics Co. Ltd. has inked a $6.65 billion contract with Verizon Communications Inc. to supply the carrier with 5G infrastructure and related technology.

Bloomberg reported on the deal Sunday evening, citing a regulatory filing submitted in South Korea. The deal is one of the largest network infrastructure contracts for Samsung to date and shows that its investments in 5G are starting to bear fruit. 

The company, though historically not a major player in the carrier equipment market, has been heavily investing in 5G technology over the last decade. Samsung in 2012 became one of the first to develop a working implementation of 5G and followed up the milestone two years later by demonstrating the world’s first high-speed mobile implementation. Most recently, Samsung this January acquired TeleWorld Solutions Inc., a Virginia-based consultancy that works with carriers on network upgrades, to help it win more business from U.S. telecommunications providers.

The new contract with Verizon follows years of 5G collaboration between the companies. Verizon first started trialing Samsung’s 5G hardware all the way back in 2016 and, two years later, selected the South Korean electronics maker to supply hardware for its commercial network.

Verizon’s $6.65 billion infrastructure deal with Samsung is set to last through the end of 2025. Under the contract, the carrier will purchase network equipment as well as installation and maintenance services. It’s not clear exactly how much of that network equipment will be 5G-enabled, though given how heavily Version and its rivals are prioritizing 5G, the technology likely played a central part in the deal.

In any event, the deal is a major win for Samsung’s networking business. According to the Wall Street Journal, the Verizon contract’s $6.65 billion value over five years exceeds the revenues Samsung generated from the business in all of 2019. 

 “We are pleased to expand our longstanding partnership with Verizon to advance their next-generation network evolution,” Samsung told Nikkei in a statement. “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.” 

Photo: Samsung