[Image source: Samsung Global Newsroom]

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Samsung Electronics Co. has been selected by Japan’s mobile communications operator KDDI Corp. as the 5G Standalone (SA) Core solution provider, the company said on Thursday, a move that will help the tech giant’s network business to gain momentum.

Core solution refers to a key 5G infrastructure that provides device authentication, customer service, and service quality management through connection with base stations for internet connection of data traffic for mobile devices such as smartphones. It requires high level of technical skills and stable quality assurance.

Samsung Electronics has solidified its position as KDDI’s end-to-end network partner as it will also be providing 5G SA Core solution in addition to 5G base station in 2020 and virtual base station in 2021.

“KDDI has been at the forefront of opening up the next frontier of 5G services and we are proud to see our long-term collaboration deepen with new opportunities as we drive continuous innovation and realize technology vision together,” said Lee June-hee, executive vice president and head of global sales & marketing, networks business at Samsung Electronics. “We look forward to continuing our collaboration with KDDI to reshape the 5G Services landscape in Japan and achieving new 5G milestones.”

Samsung Electronics has been widening its presence in the global market by signing a record 7.9 trillion won ($6.3 billion) deal with U.S. telecom giant Verizon Communications Inc. in 2020 to supply 4G and 5G telecommunications equipment.

The company also signed 5G agreements with Japanese telecom company NTT Docomo Inc. and U.K. telecom provider Vodafone Group Plc. In 2021. It also partnered with Dish Network Corp., the fourth largest wireless carrier in the U.S., India’s leading telecom operator Bharti Airtel Ltd. and U.S. telecom giant Comcast Corp. for 5G equipment supply.

Verizon CEO Hans Vestberg and Jay Y. Lee in New York, in 2021. [Photo provided by Samsung Electronics]

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The rise in network business at Samsung Electronics is attributed to its executive vice chairman Jay Y. Lee who has been eager to stay ahead of others in the competition.

Network business is highlighted as Lee’s flagship business. He has focused on the business since 2011 when 4G service was launched. He also ordered to set up a new next-generation communications research development unit responsible for 5G technology research.

Last year, Samsung Electronics promoted Kim Woo-jun, head of the strategic marketing team under the network business division, as president and head of the networks business. It also set up a new business strategy task force team under the division and named Henrik Jansson, who previously worked for Swedish telecom company Ericsson, as managing director.

Lee’s global networking skills also played a part. Lee is known to have spared significant efforts in expanding 5G mobile communication equipment supply to NTT Docomo last year. Lee also led the success in negotiating Samsung’s supply of 5G telecom equipment to Dish Network in a friendly hiking trip with the company’s chairman Charlie Ergen last year.

Lee now eyes beyond 5G and targets the 6G market. Samsung Electronics already established a next-generation communications research center under its R&D wing Samsung Research in 2019 and launched studies on 6G future technologies.

“Lee often meets CEOs of global telecommunications companies while on overseas business trips to foster the business,” said an unnamed official from the conglomerate circle. “He is highly interested in building partnerships with global companies ahead of the 6G era.”