Samsung yanks plug out of rumors of networking biz sell-off
Everyone else: Samsung has a network business?
Samsung is nipping in the bud talk of selling its mobile network business.
The South Korean electronics giant said on Wednesday that rumors posted earlier this week suggesting it was looking to find a buyer for its networking operations were untrue.
"Some news media have contended that Samsung Electronics is considering to sell its network business, which manufactures mobile telecommunication systems," Samsung said in a statement.
"However, Samsung Electronics has no intention to pull out from its network business."
Though best known for its mobile, display, and home appliance lines, Samsung also operates a wireless equipment business and provides hardware for telcos that operate 2G, 3G, and LTE broadband networks. The company notes that its gear is used by telcos for networks across Europe, Asia, and the Americas.
Those wireless broadband markets remain particularly lucrative in densely populated developing markets where erecting mobile towers remains a cheaper and more viable option than laying cable and connecting homes and office buildings.
Samsung said it will continue those operations as well as its investment in research and development operations in the wireless broadband space.
"Overall, tens of billions of dollars in investments were made every year, which contributed to accelerating innovation in next-generation telecommunication technologies (SDN/NFV, 5G)," Samsung said. "Samsung will continuously commit to bringing advanced telecommunication technologies to the world."
Online rumors and mumblings of upcoming moves are ubiquitous around a company as large as Samsung.
That said, these specific reports seemed to strike a chord with Samsung loud enough to prompt an official response. This leads to some lingering questions about how committed the company really is to its networking outfit and whether there could be some internal division about the future of the operation. ®