Samsung bets on European 5G orders to grow network equipment business

Samsung Electronics is pinning its hopes on Europe to keep its network equipment business growing as 5G network deployments expand, a senior Samsung executive said.

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Samsung seeks to expand its 5G business (Image source: Reuters)

Although the South Korean tech company is the world's No. 1 in many areas, it ranks fifth in 5G network equipment, with a market share of 10-15% in the first quarter of 2021, based on data from the last four quarters, according to market research firm Dell'Oro Group.

But Woojune Kim, executive vice president of Samsung's networks business, said its market share was growing following its $6.6 billion deal with U.S. telecom company Verizon in September and its subsequent deal with Japan's NTT Docomo in March.

In addition, he also said that Samsung is currently conducting 5G trials with European telecom companies such as the Czech Republic, Deutsche Telekom (DTEGn.DE), Poland's Play Communications and another major European telecom company. In addition to Europe, Samsung is also seeking to expand markets such as India, Australia and Southeast Asia.

Samsung's current network equipment business is small, with revenue of 236.8 trillion won ($212.5 billion) in 2020. Samsung said the number of new customers for its 5G equipment and systems has grown by an average of 35% per year since 5G network deployment began in various countries in 2019. Samsung aims to become a top three player in the 5G network equipment business.