Samsung to acquire US telecommunications firm TeleWorld Solutions

Samsung Town in Seoul’s Seocho District. (Kim Tae-hyeong, staff photographer)

S. Korean electronics giant looks to expand its 5G infrastructure in US

Samsung Town in Seoul’s Seocho District. (Kim Tae-hyeong, staff photographer)

Samsung Electronics announced on Jan. 14 that it will acquire TeleWorld Solutions, an American company that specializes in designing and optimizing mobile networks. With Samsung coming in second, behind China’s Huawei, in the global market for 5G communications equipment, the company is poised to further expand its 5G network business in the North American market and beyond.

While announcing the conclusion of a contract to acquire TeleWorld Solutions on Monday, Samsung said it plans to “expand its market share in the North American mobile communication market, including the US, which represents the largest market in the world, while making strategic investments that further our advance into the global mobile communications market.” Established in 2002, TeleWorld Solutions has been providing services including networking design, optimization, and field testing to large mobile service providers and cable TV providers in the US.

“The commercialization of 5G technology has led to the diversification of the base stations and frequencies used in mobile communication and a more complicated network structure, with the result that efficient network design and optimization technologies are emerging as key capabilities for securing 5G coverage,” Samsung said.

“TeleWorld Solutions has developed its own technology for automating network monitoring and analysis, which saves anywhere from 50% to 90% of the time previously required to choose the optimal locations for base stations, both indoors and outside, and to pinpoint the sources of wireless signal interference.” Even after the acquisition is complete, Samsung added, it plans to retain TeleWorld Solutions’ current management team to run the business.

Samsung’s acquisition of the company is seen as fitting into its strategy for increasing its market share in telecommunications equipment, beginning with North America, given the likelihood that the global market for 5G technology, which was rolled out last year, will take off this year. This market is under particular scrutiny because the leading player in the US is Huawei, which has been a bone of contention in the US-China trade dispute. Data provided by market research firm IHS Markit shows that Samsung Electronics occupied a 23% share of the global 5G communications equipment market in the third quarter of 2019, seven percentage points behind Huawei’s 30%. Other major players are Sweden’s Ericsson (20%) and Finland’s Nokia (14%).

“Samsung Electronics’ technology and business capabilities are recognized in the US, the leading market for mobile communication, which has enabled us to supply telecommunications equipment to mobile service providers such as Verizon, AT&T, and Sprint. Based on the knowledgeable workers and differentiated service expertise at TeleWorld Solutions, we mean to further expand our presence in North America, and in the global market, in 2020,” said Cheun Kyung-whoon, executive vice president and head of networks business at Samsung Electronics.

By Song Gyung-hwa, staff reporter

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