Samsung Rumoured to Be Selling Wireless Network Gear Business

by Istvan Fekete on November 26, 2015

Anonymous industry sources speaking with Light Reading claim Samsung is considering selling its wireless network unit.

Fact is, Samsung has been a smaller player in the network gear market, especially when compared to companies such as Ericsson, Huawei, Nokia/Alcatel-Lucent, or ZTE. However, it does count several large carriers as its customers for telecom gear, such SK Telecom, Sprint, Verizon, and even Vodafone.

The Light Reading report claims Samsung is now weighing up strategic options for its networks division and might sell it to a larger rival. When contacted, Samsung declined to comment.

While Samsung does not release the financial details of its network gear unit, there are some hints about its size. Samsung’s IT & Mobile (IM) Communications division includes two main units: the handset and tablet business, and the network gear division.

In terms of revenue, in the third quarter the overall IM unit had sales of about $23 billion, with the mobile component – aka mobile device sales – accounting for around $22.57 billion.

In the meantime, the telecom gear industry is consolidating: Nokia will soon complete the purchase of Alcatel-Lucent and is ready to challenge Ericsson and Huawei. Also, Ericsson and Cisco have signed an agreement to cross-sell each other’s products and services, and to develop new ones together.

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Written by: Istvan Fekete. Follow by: RSS, Twitter, Facebook, or YouTube.

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