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Samsung Electronics buys TWS

Deal comes as the 5G network equipment market war heats up

Jan 15,2020
Samsung Electronics has agreed to acquire TeleWorld Solutions (TWS), a Chantilly, Virginia-based network service provider.

The size of the transaction was not disclosed.

It comes as the Korean acquirer works to increase its presence in the network equipment business and as it also releases 5G devices.

According to a statement released by the company, the takeover was undertaken to help Samsung Electronics increase its market share in the mobile telecoms market, especially in the North American market.

Founded in 2002, TWS provides wireless networking and consulting services for a wide range of cellular network technologies, including 5G.

Samsung plans to keep the network operator’s current leadership and run it as a wholly-owned subsidiary of Samsung Electronics America.

In the 5G network equipment business, Samsung is vying to take a bigger slice of the market at a time where market leader Huawei faces security concerns in several jurisdictions, including the United States.

Despite these concerns, the Chinese company is the largest 5G equipment vendor, with a 30 percent market share, followed by Samsung Electronics with 23 percent, in the third quarter last year.

In October, Samsung Electronics won a contract to supply 5G mobile network equipment to KDDI, Japan’s second-largest telecommunications company, followed by a December deal to provide 4G LTE-A and 5G equipment to Canada’s Videotron.

“The acquisition of TWS will enable us to meet mobile carriers’ growing needs for improving their 4G and 5G networks and eventually create new opportunities to enhance our service capabilities to our customers,” said Cheun Kyung-whoon, executive vice president and head of the networks business at Samsung Electronics, in a statement.

“Samsung will continue to drive innovation in communications technology, while providing optimization services for network deployments that accelerate U.S. 5G network expansion.”

“The advent of 5G and the amount of new spectrum coming into the U.S. market require scale and innovation for the next generation of wireless technologies,” said Shervin Gerami, CEO of TeleWorld Solutions, in the statement.

“Joining forces with Samsung will accelerate innovation to help our customers fulfill their needs for network strategy, deployment and automation,” the CEO said.

Samsung Electronics shares were unchanged at 60,000 won in trading on Tuesday.

BY PARK EUN-JEE [park.eunjee@joongang.co.kr]


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