Mobile Internet

Samsung’s Role in the Indian Telecom Sector

Samsung is the South Korean electronics giant with a stronghold in the India market. They are now in collaboration with the fastest growing Indian telecom player – Reliance Jio. Currently, Samsung is the only supplier of telecom equipment for the 4G network to the Indian Giant. The other players such as Airtel and Vodafone Idea use equipment from other manufacturers such as Huawei, Nokia and Ericsson.

As per the Economic Times report, Samsung provided equipment to Jio for over 140,000 sites for pan-India coverage last year. As Jio is looking to attain 99% population coverage in India before the end of this year, they are deploying small cells in large volume for indoor coverage from Samsung.

Samsung is planning big in India, as they are also supply9ng technologies to Jio to test the upcoming 5G networks. They are planning to test the initial stages of 5G technologies in Delhi by the first quarter and then in the later stages work with the Depart of telecommunications (DoT).

It is to be noted that the Indian government is very wary of the Chinese telecom equipment manufacturers operating in the country as their reputation is heavily stained. After the US banning Huawei and ZTE from operating on their lands, India has been quietly trying to offer more contracts to Nokia, Ericsson and Samsung. These companies have a better reputation in the global market and hence the Government feels the user data will be safe. The issue is with the costs involved as the Chinese companies offer services and equipment at significantly lower costs compared to the European or Korean brands. However, Reliance with their deep pockets has already disrupted the telecom market in India by making the voice and data charges virtually free of cost. In a different scenario, they are slowly trying to disrupt the telecom equipment market in India by giving contracts to just the Korean brand instead of the Chinese brand. Since Jio is rapidly moving towards becoming the largest telecom player in the nation and the Government is also in favour of Korean and European players the future of the Chinese equipment manufactures dwindle in the air.

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