Samsung Electronics to provide $2 bn 5G equipment to Japan`s KDDI

Samsung Electronics Co. will supply $2 billion worth of 5G equipment over the next five years to Japan’s second largest telco KDDI Corp., a feat achieved amid ongoing trade conflicts between Korea and Japan.

KDDI announced on Monday it has started sending out frequencies with its first base station for 5G commercial services ahead of its official launching in March, 2020. Samsung Electronics will be the primary supplier behind KDDI’s deployment of 53,626 base stations across Japan until 2023.

The Korean electronics giant will reportedly be responsible for half of the Japanese carrier’s near $4 billion 5G infrastructure across Japan. Samsung Electronics was KDDI’s primary supplier for 4G LTE equipment in 2011.

Sweden’s Erickson and Finland’s Nokia will cover the rural areas whereas Samsung Electronics backs Tokyo and its vicinity.

KDDI and Samsung Electronics had tested 5G connections at Haneda Airport and some train stations for a month late last year.

Samsung’s latest successful bid comes after Jay Y. Lee, the company’s vice chairman, headed for Japan to discuss cooperation over 5G business with NTT DoCoMo and KDDI last May. On Sept. 20, Lee also attended the opening match of the Rugby World Cup held in Tokyo at the invitation of the Japanese business community.

Samsung Electronics is aiming to have negotiations with other Japanese 5G service providers SoftBank and Rakuten Mobile to supply its equipment. The 5G infrastructure planned by Japan’s telecommunication industry is estimated to reach 32 trillion won ($26.7 billion).

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