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Underscoring the growing importance of the business, South Korean Prime Minister Lee Nak-yeon visited Samsung’s network division in January. In a closed-door meeting during that visit, Samsung heir Jay Y. Lee asked for government help with recruiting high-level engineers. Huawei is battling allegations by the United States and some other Western countries that its equipment could enable Chinese spying and should not be used in 5G networks, which will offer higher speeds and a host of new services.

Australia and New Zealand have joined the United States in effectively barring Huawei from 5G, and many other countries, especially in Europe, are considering a ban, Huawei denies that its gear presents any security risk, Its woes have presented Samsung with a rare opportunity, Telecom firms would ordinarily stick with their 4G providers for 5G upgrades as they can use existing gear to minimize costs, but many firms may now be gold cufflinks under political pressure to switch, “We’re bolstering our network business to seize market opportunities arising at a time when Huawei is the subject of warnings about security,” said one of the Samsung sources..

The sources, who did not disclose specific figures for the employee moves, declined to be identified as they were not authorized to speak on the matter. Keen to seek new growth, particularly as sales of its mainstay chips and smartphones have begun to drop, Samsung plans to invest $22 billion in 5G mobile technology and other fields over three years. It declined to break down how much will go to 5G and the other areas - artificial intelligence, biopharma and automotive electronic parts. “Samsung is focused on building trust with our partners and leading the global 5G markets, regardless of other companies,” it said in an emailed statement to Reuters.

Asked about Samsung’s big push into network equipment, Huawei said in a statement that it welcomed competition in the market, In India, Samsung is now in talks with Reliance Jio to upgrade its network to 5G, looking to build on what has perhaps gold cufflinks been its biggest network success - becoming the key supplier for the upstart carrier, “We don’t think 5G is far away in India,” a Samsung official with direct knowledge of the matter told Reuters, He declined to be named due to the sensitivity of the matter..

Samsung’s clients include U.S. firms AT&T Inc, Verizon Communications Inc and Sprint Corp and it has 5G network contracts with all three, though it was not clear how extensive those contracts are. It also sells to South Korean carriers and has partnered with Japanese mobile carriers to test its 5G equipment. In many cases, Samsung supplies only small pieces of networks. According to market tracker Dell’Oro Group, the South Korean firm holds just 3 percent of the global telecom infrastructure market compared with 28 percent for Huawei.

Its network business made 870 billion won ($775 million) in operating profit last year, according to Eugene Investment & Securities, Filings show Nokia’s network business made about 1.2 billion euros ($1.4 billion) while Ericsson’s network operations made 19.4 billion Swedish crowns ($2.1 billion), Figures for Huawei were not available, One major hurdle for Samsung will be attracting talent amid a dearth of software engineers gold cufflinks in South Korea, “We need more software engineers and want to work with the government to find that talent,” Lee was quoted as saying by government officials at his meeting with the prime minister..

Samsung’s network business unit employs roughly 5,000 people, according to a government official in the southern city of Gumi where Samsung operates its manufacturing plants. Kim Young-woo, an analyst at SK Securities, expects Samsung to hire 1,000-1,500 people for 5G network equipment this year. Samsung declined to comment on network employee levels and hiring plans. But Samsung’s bet remains risky as the long-term nature of telecom network investment means change comes slowly. Sweden’s Ericsson and Finland’s Nokia, which acquired the remnants of once-powerful network equipment companies Alcatel-Lucent and Nortel, have as yet seen little sales growth from Huawei’s problems, company executives said.

Both are in cost-cutting mode, even in the face of the 5G opportunity and the problems confronting their biggest rival, Indeed, some network operators in Europe are warning that a Huawei ban - now under consideration in France, the UK, Germany and other countries - could push back deployment of 5G by as much as three years, Others warn Samsung may struggle to develop gold cufflinks a global sales and support organization, “The way telcos purchase products and services from their suppliers demand a lot of time and resources, which is why Ericsson and Nokia have around 100,000 employees and Huawei almost twice as many,” said Bengt Nordstrom, CEO of telecom consultancy Northstream..