Samsung Electronics has been selected by Verizon Communications as an equipment supplier in the rollout of 5G services. This comes as the largest wireless carrier in the United States makes efforts to provide high speed internet on its network and follows an announcement by the wireless carrier that its 5G network will be rolled out in this year’s second half beginning with Sacramento, California. The service will thereafter be added to other markets in the United States.

“The industry has been discussing 5G connectivity for years, and through our joint collaboration with partners like Samsung, we are beginning to make it a reality for our customers,” Verizon’s chief technology architect, Ed Chan, said in a statement.

Cellular antennas

In its 5G rollout, Verizon will make use of cellular antennas that will beam signals at high speed into the homes of consumers. Samsung will not only manufacture the network equipment for the wireless carrier but will also make the routers that will be used in homes. Verizon Communications started its 5G trials last year and they concentrated on home broadband services in 11 key markets in the United States.

Globally companies are investing billions in 5G technology despite the fact that there is an ongoing debate over whether its advantage can be extended beyond faster internet speeds. Potential for its use in Internet of Things, smart cities and driverless cars has been identified. By 2020 telecom operators and government agencies expected the availability of 5G to have increased.

Home broadband

By initially targeting home broadband users with its 5G offering, Verizon stands to disrupt a sector that is presently dominated by providers of cable services such as Charter Communications and Comcast Corporation.

Though a bit player with regards to the making of network equipment Samsung’s experience in making components and devices gives the South Korean giant an edge. Last year the network business of Samsung generated approximately $1.9 billion per Counterpoint Technology Market Research. According to a spokesperson for the South Korean conglomerate, the company is targeting to increase the revenues from the network business fivefold by 2020.

With the new 5G technology it is expected that growth for wireless carriers will be revived since the service will broaden the uses. Currently the average consumer in the United States uses approximately 5GB of mobile data per month. After 5G technology is rolled out this is expected to rise to 100GB per month since there will be new services that include augmented or virtual reality applications.