According to foreign media reports, although Samsung Electronics has become synonymous with Korean technology, Huawei, one of the company's main competitors in the smartphone market, may be competing for Samsung Electronics, which is preparing to build a fifth-generation wireless network. Take the lead in the middle.

Huawei is currently bidding in South Korea and is striving to provide 5G network equipment to three national mobile operators in Korea. The total order size of the first contract will be worth 10 trillion won (about 9 billion US dollars). As South Korea strives to be the first country to deploy 5G networks, suppliers from all over the world are racing to sell switches, base stations and other devices in South Korea. Although Samsung Electronics is known for its smartphones and memory chips, its network equipment will not be able to enter the Korean 5G network, which will be a heavy blow to this recently hit company.

Huawei is now the world's largest provider of telecommunications network equipment, and the company is still one of the largest patent holding companies by investigating 5G technology and investing a large amount of research and development expenditures. "Huawei is aggressive and has developed 5G technology earlier than other companies," said Park Jin-hyo, executive vice president of SK Telecom, Korea's largest mobile operator. "We take an open attitude and there is no prejudice," he said. SK Telecom is currently considering a number of factors, including technology and cost, and if Huawei does not meet global safety standards, it will not consider the company.

SK Telecom, KT and LG Uplus, the three largest mobile operators in Korea, currently have more than 56 million subscribers, which exceeds the total population of South Korea's 51 million. After agreeing to allocate 3.6 trillion won for 5G mobile spectrum last month, costs have become the most critical factor in their procurement of equipment.

At present, LG Uplus has expressed its willingness to choose Huawei equipment, and SK Telecom and KT are still weighing whether to use Huawei, or Samsung Electronics, Nokia, Ericsson equipment. This week, South Korea’s science and technology minister plans to meet with the heads of three wireless carriers in the country to discuss their 5G plans – Huawei will almost certainly emerge.

The appeal of 5G technology is that it can transfer data quickly, helping autopilot cars to run, or download movies in seconds.

Huawei advantage

Although Samsung Electronics has never occupied a large share of the global wireless network equipment market, it has always been able to rely on the support of local operators. The emergence of Huawei will allow Samsung Electronics to face a competitor that can cut prices and have a high customer service reputation.

"Huawei's advantage is its price competitiveness," said Kim Hyun-yong, an analyst at Ebest Investment & Securities Co., a Korean brokerage firm. "Huawei's leading position in 5G equipment development is enough to get its equipment to work immediately." As of now, Huawei and Samsung Electronics have not commented on this report.

After the success of the telecom network equipment market, Huawei began to vigorously promote the consumer equipment business. Today, the company has become the world's third-largest smartphone maker, second only to Samsung Electronics and Apple. According to statistics from market research firm TrendForce, although Samsung Electronics still leads Huawei in the smartphone market, the gap between the two companies is shrinking. Samsung Electronics accounted for 21.9% of the global smartphone market last year, and Huawei's 10.8%.

Samsung Electronics has been working hard to improve its image as a network equipment supplier, so 5G is crucial to its future development. In addition to the telecommunications equipment business, Samsung's electronic storage chip business is also facing challenges from Chinese competitors.

“It is symbolic in the world's first 5G network to supply 5G equipment. Huawei remains competitive globally because it is deeply rooted in China. Imagine if a Korean company is trying to increase its share of the global market. When the backyard fires, what does this mean," said Hong Een-kee, a professor of wireless communications at Kyung Hee University in South Korea.