Interview with Samsung Electronics America VP of Networks Strategy - Business Insider

Insider Intelligence : Samsung has set aggressive targets to grow market share in the telecom equipment sector. Why has Samsung identified this as a target growth area, given how it isn't generally seen as an attractive industry? I think Samsung has an opportunity to impact every part of the mobile value chain with end-to-end systems.

Our foundry business also helps us be first to market with new technologies and features. Back in 2018, for example, we were a launch partner with Verizon for their 5G home service. … We were able to support what Verizon needed because we could build the chipset for that pre-standard 5G, we could build the network equipment, and we even built the home CPE. So I think all of those pieces kind of work in concert.

II: Samsung has been a proponent of the O-RAN equipment standard, which is being touted as a way to reduce equipment costs for wireless carriers. Why is it in Samsung's interest as a telecom equipment-maker to support the standard? It has a lot to do with where a given equipment vendor is in terms of market share. Samsung is the challenger—we've been locked out of some networks, because perhaps vendors with larger market share have created that lock-in.

The other thing I'll say, though—and this is where it gets a little bit complex—is that it's not a trivial exercise to take equipment from multiple vendors and optimize the functionality. And that's what O-RAN is promising. The specifications are just being completed. There are some interesting proof points, some of which Samsung has been involved in, to validate the ability to mix and match equipment, but it's still a heavy lift on the part of operators.

Performance still matters quite a bit. And most operators in dense metro areas, where we're going to see 5G first, have a very strong focus on performance optimization. So an O-RAN-compliant baseband unit is still going to have some differentiation in how much capacity you can support within a certain volume of gear.

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