Samsung is hoping that demand for LTE and WiMAX networks can catapult it to become one of the world's three largest infrastructure vendors by 2015, challenging the likes of Ericsson (NASDAQ:ERIC), Nokia Siemens Networks and Huawei.
"In terms of revenue and the number of contracts, we're trying to break into the top three," I.P. Hong, head of the marketing group at Samsung's Telecom Systems Business, said in an interview with Bloomberg. "We're positively forecasting we'll be able to achieve that around 2015."
Samsung, better known for making mobile phones, faces a steep climb as it competes with the likes of Alcatel-Lucent (NASDAQ:ALU) and ZTE. According to research firm Dell'Oro Group, in the fourth quarter Ericsson led the infrastructure market with 36.9 percent market share, while Nokia Siemens followed with 21.4 percent and Huawei had 17.9 percent of the market. The wireless infrastructure market is expected to grow 5 percent this year, according to Dell'Oro.
Hong told Bloomberg that Samsung aims to boost its network infrastructure sales by 30 to 40 percent annually in order to meet its target.
Samsung, which dominates about one-third of the WiMAX infrastructure market, currently is working with 13 operators in eight countries on LTE networks. In December, Sprint Nextel (NYSE:S) selected Samsung, Alcatel-Lucent and Ericsson for its network modernization project. The project will cost $4 billion to $5 billion, and is expected to take three to five years to complete. Hong said Samsung will try and win "a few more contracts" in the U.S. market. He said Samsung will continue to support both WiMAX and LTE deployments.
For more:
- see this Bloomberg article
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