Samsung to supply advanced 5G network equipment to KDDI

South Korea’s tech giant Samsung Electronics Co. has been chosen as the supplier of advanced fifth-generation network equipment to Japan’s KDDI Corp., further consolidating their decade-long partnership.

Under the latest deal, Samsung will provide its cloud-based 5G standalone Core to the Japanese telecommunications company for an advanced commercial network service across Japan, the two companies said on Thursday.

Samsung said the new equipment, which supports both 4G and 5G networks, will enhance network stability and reliability through new functions such as an overload control to handle sudden spikes in traffic.

The financial terms of the deal weren’t known.

With the standalone architecture, KDDI can create an independent 5G network, enabling lower latency capabilities essential to high-performance applications such as smart factories, automated vehicles, cloud-based online gaming and multi-camera live streaming at sporting events, according to Samsung.

5G Core will also enable KDDI to optimize network slicing, it said.

Network slicing refers to a network architecture that divides a physical mobile communications network into multiple independent virtual networks to provide customized communications services for different purposes.

The two companies already demonstrated Samsung’s network-slicing technology in a 5G environment in mid-January.

LONG-TERM COLLABORATION DEEPENS

Samsung Group has chosen 5G communications equipment as one of its growth engines alongside three other businesses – artificial intelligence, bio and electronic components for semiconductors.

“We are proud to see our long-term collaboration deepen with new opportunities as we drive continuous innovation and realize technology visions together,” said Lee June-hee, executive vice president and head of Global Sales & Marketing, Networks Business at Samsung.

Toshikazu Yokai, general manager of KDDI’s mobile network technology development division, said: “With Samsung’s 5G SA Core, we will offer unprecedented speed, instantaneous connectivity and high reliability for our individual and enterprise customers.”

For more than a decade, the two companies have been working together, hitting major 5G network milestones, including KDDI’s selection of Samsung as a 5G base station equipment supplier in 2020 and as a virtual network device provider in 2021.

LEE’S PERSONAL NETWORK

Since Samsung Chairman Jay Y. Lee took the helm of the conglomerate last year, the group has been aggressively expanding its telecom network business.

Samsung is among the first to supply 5G network equipment globally after it helped Korean mobile carriers commercialize the world’s first 5G service in 2019.

The Samsung leader has been reaching out to leaders of global telecom equipment makers in support of Samsung’s telecom equipment sales.

Last November, Samsung clinched a deal to supply 5G network equipment to Japan’s top mobile carrier NTT Docomo Inc.

Samsung is also increasing network equipment sales in the US.

In 2020, Samsung clinched a 7.9 trillion won ($6.6 billion) deal to supply equipment to Verizon Communications Inc.

Last March, it was chosen as the 5G equipment supplier to Dish Network Corp. It also agreed to supply 5G telecom equipment to US media giant Comcast Corp. in September.

Earlier this year, Samsung hired two former executives of Sweden’s Ericsson to boost its network business in Europe.

Write to Jeong-Soo Hwang at hjs@hankyung.com

In-Soo Nam edited this article.