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Amazon enters European 5G market with O2 Telefónica cloud deal

O2 Telefónica in Germany, in partnership with Nokia, has made a groundbreaking transfer by deploying 5G standalone core software program on Amazon Internet Providers (AWS). This marks a major milestone as it’s the first occasion of an present cellular operator shifting its core community to a public cloud. 

Historically, telecom networks have migrated IT and different non-core operations to the cloud, however this transition by the subsidiary of the Spanish group Telefonica units a brand new world precedent.

Increasing horizons: Amazon, 5G, and cloud integration in Telecom

Massive cloud computing giants like Amazon and Microsoft have been eyeing the telecom sector for profitable potential income, regardless of some operators’ reservations concerning the public cloud’s capability to handle a cellular community successfully. 

The core community, which is essential for securely routing information and calls at excessive speeds, usually depends on high-performance servers in information centres. Transitioning to a public cloud can cut back prices, improve scalability, and facilitate upkeep with out disrupting service.

Lately, the development in the direction of cloud migration in telecom has been gaining momentum. For example, earlier this 12 months, NTT DOCOMO, Japan’s main cellular operator, introduced plans to deploy its nationwide 5G Open Radio Entry Community (RAN) in collaboration with AWS. Again in 2021, AWS additionally partnered with DISH to develop its 5G community all through the U.S. It’s fascinating that Telefonica initially collaborated with AWS and Ericsson earlier than switching to Nokia and AWS for its operations.

The deployment of Nokia’s expertise gives O2 Telefónica ultra-low latency, important for delivering superior 5G providers comparable to prolonged actuality and community slicing, which demand instantaneous availability and extra substantial bandwidth capability. Nokia’s safe and cloud-native 5G core structure enhances O2 Telefónica’s community by permitting extra versatile scaling, elevated reliability, and close to zero-touch automation for managing workloads.

This transfer additionally showcases Nokia’s functionality to transition communication service suppliers (CSPs) to numerous cloud platforms, together with public, non-public, and hybrid clouds. This flexibility allows CSPs to deploy functions and providers on the infrastructure that greatest meets their wants. Nokia is a chief in 5G standalone core expertise, serving 107 CSP prospects worldwide and was not too long ago recognised as an trade chief by GlobalData.

Mallik Rao, chief expertise & data officer at O2 Telefónica, highlighted the strategic nature of this deployment. “With the brand new 5G cloud core, we’re shifting away from conventional architectures and as an alternative specializing in fashionable, high-performance, and environment friendly community applied sciences.

“By partnering with Nokia and AWS, we guarantee our prospects get pleasure from an outstanding 5G expertise together with new digital functions.”

Fabio Cerone, GM of Telecom EMEA at Amazon Internet Providers, shared his enthusiasm about AWS’s function on this transformative venture. “Through the use of Nokia 5G Core community on AWS, O2 Telefónica is redefining its working mannequin by way of full automation and elasticity at scale. It’ll convey O2 Telefónica the power to dynamically scale and allocate 5G community capabilities to fulfill buyer wants, in addition to the wants of the brand new functions that may run on prime of the brand new core,” he mentioned.

Raghav Sahgal, president of Cloud and Community Providers at Nokia, additionally expressed his help for O2 Telefónica Germany’s progressive step onto AWS.

He sated: “This deployment, the primary main one in all its sort for an present communication service supplier, allows larger community agility and repair choices, and supplies Telefónica Germany with all of the instruments it must effectively handle and extract larger worth from its community belongings.”

A rising marketplace for telecom cloud

As the worldwide telecom cloud market is poised to develop from US$19.7 billion in 2021 to an estimated US$108.7 billion by 2030, corporations like Amazon stand to learn considerably from this enlargement. This shift highlights the evolving dynamics within the telecom trade, the place cloud expertise performs an more and more central function in community administration and repair supply.

Try the upcoming Cloud Transformation Convention, a free digital occasion for enterprise and expertise leaders to discover the evolving panorama of cloud transformation. E-book your free digital ticket to deep dive into the practicalities and alternatives surrounding cloud adoption. Be taught extra right here.

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