Samsung makes its way into the European 5G race

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European telecom companies have begun to consider Samsung in the race to replace Huawei, China, as the supplier of 5G systems.

After Samsung concluded in September a deal worth 6 billion dollars with Verizon, Spain, Spain’s Telefonica and French Orange held talks with Samsung.

Huawei equipment makes up nearly half of the European 4G network, which forms the basis for 5G networks, along with equipment from Nokia and Ericsson.

European telecom companies are under pressure from the United States to avoid Huawei’s 5G equipment.

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Washington says there is a risk that Huawei is spying for Beijing, although the company has repeatedly denied this.

One of Samsung’s problems is that European telecom companies are concerned that their products will not be compatible with Huawei’s current 4G equipment, and it costs hundreds of millions to replace them instead of just updating them.

Samsung must be very competitive; Because the cost of switching 4G is an additional cost for the South Korean company, and it is difficult for it to be competitive.

A Samsung spokesman said: The idea that its devices are incompatible with the current infrastructure is wrong.

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The spokesman refused to specify the European markets that the company was trying to enter, and said: It hopes to repeat the successes it has achieved in Asia and the Americas.

Verizon uses Samsung equipment in various parts of its vast network in the United States.

Orange said: It is considering Samsung in Europe, and we tested Huawei and Samsung equipment before selecting Nokia and Ericsson equipment for 5G systems in France.

European telecom companies have spent billions of euros to introduce fiber-optic networks in Europe, and the fifth generation network is draining more money.

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GSMA expects $ 1.14 trillion to be invested globally over the five years, with 78 percent of that being allocated to 5G networks.

When Bell Canada decided to abandon Huawei equipment this year, analysts estimated the cost of replacing 4G equipment at about $ 200 million over several years.

The French telecom company Altice France also said: It needs the new 5G equipment to fit the current architecture, and Samsung was not present, but it may be an option in the future.

Deutsche Telekom, the largest telecom company in Europe, remains skeptical that Samsung can compete in the short term.

Analysts say: Samsung needs to do more to compete with Nokia and Ericsson.

Big deals typically require years of basic work building relationships with carriers and testing networks.

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