Huawei’s Troubles Spur Samsung in Networking

Samsung accelerates development of 5G networking gear, exploits rival Huawei’s worldwide security issues

Samsung Electronics is positioning itself as the next leader in telecom networking gear as it accelerates the development and marketing of 5G appliances in an effort to exploit the troubles faced by Chinese rival Huawei.

The Lowdown:  Telecommunications companies around the world are racing to develop and operationalize 5G networks, generating tremendous demand for networking switches and transmitters built around the high-speed 100GB standard. Samsung is looking to cash in not just on the demand but also on the potential gaps created by governments around the world pushing back on Huawei out of security concerns.

The Details:  Samsung is making its hard push into several Asian and European countries where Huawei is a 4G market leader. According to Reuters, Samsung is increasing its production capacity and product development to make its offerings more competitive and marketable in countries where Huawei faces the most pushback for security issues.

The issue facing Samsung is talent. Samsung is reportedly facing challenges finding enough software developers in its home market, South Korea, to fill its needs.

The Impact:  The Samsung push into telecom equipment isn’t just about building 5G networks; it’s about building the interconnected future for the Internet of Things. Samsung is one of the largest IoT vendors in the world, and more devices connected to edge and fog computing layers requires reliable, secure 5G networks. Samsung is still a tertiary telecommunications networking vendor, falling far behind Huawei, ZTE, Ericsson, and Nokia. While there’s a worldwide opportunity for Samsung, its first and best opportunity is in Europe, where Huawei is both a leader and under intense scrutiny.

Background:  Governments including those in the United States, Japan, Australia, and New Zealand have already banned Huawei from selling 5G equipment out of concerns that alleged connections to the China government could create security issues. Other countries, including the United Kingdom, Canada, and Germany, are considering similar bans. The GSMA is holding an emergency session at the Mobile World Congress to discuss the implications of a European Union ban on the development of 5G networks.

While Western nations are shunning Huawei, the Russian government and several Middle Eastern countries are embracing the China-based company’s equipment and services for their 5G infrastructures.

Related Links: 
Reuters: Seizing on Huawei’s Troubles, Samsung Bets Big on Network Gear
Reuters: Exclusive: Mobile network operator’s body GSMA considers crisis meeting over Huawei 
Business Insider: The US Has Formally Requested to Extradite Huawei CFO Meng Wanzhou From Canada
Financial Times: Equipment Vendors Battle for Early Lead in 5G Contracts 
Gizmodo: DOJ Charges China’s Huawei, Alleging Fraud, Obstruction of Justice, and Theft of Trade Secrets