Rumors have gathered pace that Samsung is planning to buy Nokia’s network infrastructure business. Nokia, which has struggled to compete with major rivals such as Ericsson and Huawei in recent years, remains a major player in the network infrastructure space. Samsung, meanwhile, has its own Radio Access Network (RAN) arm, but is relatively small in the space with a market share of around 6.1 percent last year.
According to information from industry insiders, Samsung aims to strengthen its RAN positions with this acquisition. If the acquisition is completed, Samsung is expected to increase its share of the global RAN market to 25.6 percent, making it the second largest RAN supplier in the world. The purchase is claimed to be worth around $10 billion.
Samsung aims to strengthen in RAN market
Samsung already makes 4G and 5G base stations, chipsets, devices, radios, and core equipment, so it’s clear that the Korean tech giant is no newcomer to the infrastructure business. The company already supplies products to a number of carriers, including Telus in Canada, O2 in Germany, Reliance Jio in India, KDDI and NTT DoCoMo in Japan, Dish and Verizon in the US, and Vodafone in the UK.
If this acquisition is realized, Samsung is expected to gain an even stronger position in the global network infrastructure market and increase its competition with its rivals. This move could further increase Samsung’s influence, especially in the 5G field, and change the balance in the sector. With this acquisition, Samsung is likely to take on a leading role in technological innovations.