Samsung to lobby on 5G ahead of Huawei decision

Samsung Electronics Co. Ltd. has updated its lobby files to include discussions on 5G deployment following a reported push to grow its network equipment business this year, a move that comes ahead of a government decision on a potential ban of Huawei Technologies Co. Ltd. equipment from the country’s next generation networks. The South Korean-based company has registered a new subject in its recent lobby communications, stating it wants to engage in “thought leadership on policies and regulations to help drive rapid development of 5G in Canada.” The file was updated on Jan. 30 under Maple Leaf Strategies’ Phil Von Finckenstein. The company has already made 5G inroads in Korea, wants to broaden its 5G equipment sales in the United States, and is setting its sights on 2019 as the year to grow that business internationally, according to its latest earnings report. When asked what the registration means and whether it’s a potential 5G play in Canada, Samsung did not respond to a request for comment. Finckenstein said he can’t speak on client matters to media. It is the first time Samsung is lobbying on the subject, the Canadian federal lobbyist registry shows. It’s also in-line with the company’s ambitions for this year. In its earnings report, released around the same time of the new lobby registration, the popular smartphone maker said its earnings improved on an initial supply of 5G equipment to Korean and U.S. clients. This year, it wants to continue that momentum, “commercialize 5G modem chips,” boost technological leadership by launching 5G devices, and “lead the global 5G market and solidify foundation for growth via supply expansion in the initial markets of Korea and the US.” Canada is not mentioned in the report. Samsung, which isn’t a new player in the 5G arena, has already deployed commercial 5G in parts of South Korea, formed part of a group on U.S.-based 5G tests, and has partnered with American providers such as Verizon Communications Inc. on 5G devices. The lobby addition also comes at an opportune time: the federal government, under pressure from international allies, is poised to make a decision on whether Canadian telecoms will be allowed to use Huawei-made network equipment in their 5G apparatus. Amid that rising political pressure, two major European vendors, Sweden’s Ericsson AB and Finland’s Nokia Corp., have stepped in to potentially claim a chunk of the market that will be left void if the reportedly less-expensive Chinese manufacturer is banished from the next generation networks. Nokia, for its part, recently signed a $40-million deal with the federal government to grow its projects in the country. Analysts previously noted that the likelihood of a Huawei ban has increased in recent months. The government said it is still “beyond weeks” away from such a momentous decision. Meanwhile, Samsung is reportedly taking advantage of the controversy surrounding the Chinese giant. Reuters reported last week, citing insider sources, that the company has started shifting resources, including human capital, from its handset division to its network business. The report quotes a source saying that Samsung is doing a “big push” in Europe, as it has worked with French telecom Orange on a 5G trial in Romania. Two of this country’s biggest consumers of Huawei technology are Telus Corp. and BCE Inc. In recent earnings calls, both companies gave somewhat differing accounts of the impact of a possible Huawei ban: Bell said it would not slow down its rollout of the next generation network, and Telus outlined that while it would increase costs and delay deployment, the effect would ultimately be manageable. Telus said that taking an equipment supplier out of the market would permanently raise costs. If Samsung is seeking to enter the Canadian market, it could potentially allay those fears by keeping the number of major suppliers at three. In any event, both companies said they still haven’t picked a 5G vendor, thus leaving the door open for opportunistic suitors. Telecommunications-related lobbying communications fell 17.5 per cent from December to January, with the latter reporting 52 communications. Meanwhile, broadcasting communications activity jumped from eight to 33 last month compared to December. The Canadian Media Producers Association (CMPA) led all lobbying communications in January with 16 under head Reynolds Mastin. Telus led lobby communications in January among the telecoms with 11. Shaw Communications Inc. followed with nine, Bell with seven, and Rogers Communications Inc. with five. — With reporting by Ahmad Hathout at ahathout@thewirereport.ca and editing by Anja Karadeglija at akarad@thewirereport.ca

Samsung to lobby on 5G ahead of Huawei decision

News | February 19, 2019

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Samsung to lobby on 5G ahead of Huawei decision

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