Samsung replaces Huawei in Canada as SaskTel’s 5G supplier

Samsung Electronics Co. has been selected as the sole vendor to supply 5G network equipment and solutions to Canadian telecom company SaskTel, based in Saskatchewan province.  

Samsung said on Mar. 16 that it replaced Huawei as SaskTel’s preferred vendor to supply a range of 4G and 5G radio access network (RAN) and core network equipment and services.

Under the deal, Samsung will provide 4G and 5G radio units, massive multiple-input, multiple-output (MIMO) radio technology, 5G network virtualization software as well as relevant maintenance services.

The new contract marks Samsung’s first overseas sale of its 5G network virtualization software, used to handle 4G and 5G data traffic simultaneously for more efficient management of network resources.

“We are pleased to select Samsung as the sole vendor for our 5G network deployment. We are confident that Samsung’s state-of-the-art 5G technology will deliver robust network capability and exceptional connectivity,” said SaskTel President and CEO Doug Burnett.

Samsung and SaskTel are planning to launch commercial 5G service in Canada from 2022 at the earliest.

“We are excited to collaborate with SaskTel to roll out next-generation 5G services within Saskatchewan, further expanding our 5G horizons in Canada with unparalleled 5G network solutions,” said Jeff Jo, president and CEO of Samsung Electronics Canada.

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Samsung’s recent deal in Canada stands out for its win over the market leader.

Huawei holds the largest share of the 5G network equipment market, closely followed by Ericsson and Nokia. Samsung holds the fourth position with growing presence in US and Canada. 

“While the SaskTel deal is smaller in size and scope versus our previous agreement with Canada’s major telecom provider TELUS, it is important to note that a company that previously used Huawei’s LTE equipment selected Samsung as its 5G business partner,” said a Samsung source. 
*Verizon deal amount: $6.6 billion; others undisclosed (source: Samsung Electronics)

Samsung has been strengthening its 5G presence in North America of late, with a 7.9 trillion won ($6.6 billion) deal in 2020 with US telecom market leader Verizon as well as supply contracts with Vidéotron and TELUS in Canada, in 2019 and 2020, respectively.

With the growing importance of security among telecom providers, Samsung’s 5G products received Common Criteria (CC) certification for the first time in 5G industry history from the Canadian Centre for Cyber Security, a unit under the Communications Security Establishment (CSE).  

Samsung’s 5G products were also the first to be listed on the US National Information Assurance Partnership (NIAP) Product Compliant List (PCL). NIAP is a US government initiative operated by the National Security Agency (NSA).

Since 2010, SaskTel has invested over $3.0 billion in capital throughout Saskatchewan province to bolster its networks and expand 5G technology in preparation for future demand. SaskTel is committed to investing another $324 million across Saskatchewan in 2020-21 and over $1.6 billion through to 2025.

“The increased speeds, reliability and capacity that 5G brings will support remote work, virtual health, and distance education, and enable SaskTel’s customers to realize the full capabilities of the latest 5G-ready devices, including the Samsung Galaxy S21 Ultra 5G,” added the SaskTel CEO.

Write to Jin-won Kim at jin1@hankyung.com
Daniel Cho edited this article.