A view of DC Network's headquarters in Colorado, USA.  (provided by Samsung Electronics)

Samsung Electronics wins large-scale U.S. 5G orders… Soaring interest in domestic 5G equipment

A view of DC Network’s headquarters in Colorado, USA. (provided by Samsung Electronics)

5G-related stocks are rising in the domestic stock market as Samsung Electronics won a contract to supply 5G telecommunication equipment worth 1 trillion won in the United States.

Samsung Electronics announced on the 4th that it had been selected as a supplier of 5G communication equipment for DISH Network, a US mobile communication operator. The order amount is about 1 trillion won, which is the second largest order received by Samsung Electronics in the US.

Samsung Electronics succeeded in commercializing a large-scale 5G virtualization base station in the United States for the first time in the industry in December 2020, and in September of last year, it signed the single largest contract (7.9 trillion won) in the history of Korean telecommunication equipment with Verizon.

DC Network entered the mobile communication market after obtaining a frequency license for the U.S. national wireless communication service in 2020. DC Network plans to build a nationwide 5G network, used by 70% of the US population, by 2023. Through this contract, Samsung Electronics is planning to supply various communication equipment including ‘5G virtualized base station (vRAN)’ to DC Network. In the future, Samsung Electronics is expected to accelerate its expansion in the US market. “Samsung Electronics is leading a paradigm shift in the telecommunication market through 5G virtualized base stations that integrate next-generation software technology and global commercial capabilities,” said Jeon Kyung-hoon, head of Samsung Electronics’ Network Business Division.

Samsung Electronics also won the ‘CTO (Chief Technology Officer) Choice’ at the ‘MWC 2022’ held in Barcelona, ​​Spain in March for the ‘virtualization base station’ technology that it decided to supply to DC Network.

On the 4th, on the news of this large-scale order, domestic 5G equipment-related stocks are showing strength all at once. As of 10:45 a.m., 5G FR-Tec was trading at 4040 won, up 29.9% from the previous day, breaking the new record price. FR Tech is a company that developed radio frequency (RF) repeaters. Dasan Networks is also trading at a 16.19% increase from the previous trading day at the same time. At the beginning of the day, the share price soared as high as 25%. In addition, other equipment makers such as Gasan Telecom (8.66%), Gasan Telecom (6.45%), and OE Solutions (6.38%) are also continuing their strength all at once.

Samsung Electronics is also rising during the day. Samsung Electronics also traded at 68,400 won at the beginning of the market, up 1.03% from the previous day. Koh Young-min, a researcher at Shinhan Financial Investment, said, “It is expected that Samsung Electronics vendors (logistics and wholesalers) will start supplying equipment for the DC network from the second half of the year.”

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