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 Companies (AWS). This marks a major milestone as it’s the first occasion of an current 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 international 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 capacity to handle a cellular community successfully. 

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

Just lately, the pattern in direction of cloud migration in telecom has been gaining momentum. As an illustration, earlier this 12 months, NTT DOCOMO, Japan’s main cellular operator, introduced plans to deploy its nationwide 5G Open Radio Access Network (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 provides O2 Telefónica ultra-low latency, important for delivering advanced 5G services similar 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 varied cloud platforms, together with public, non-public, and hybrid clouds. This flexibility permits CSPs to deploy purposes and providers on the infrastructure that finest meets their wants. Nokia is a chief in 5G standalone core expertise, serving 107 CSP prospects worldwide and was just lately 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 transferring away from conventional architectures and as a substitute 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 excellent 5G expertise together with new digital purposes.”

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

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

He sated: “This deployment, the primary main one in all its variety for an current communication service supplier, permits better community agility and repair choices, and supplies Telefónica Germany with all of the instruments it must effectively handle and extract better worth from its community property.”

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, firms like Amazon stand to profit considerably from this growth. 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.

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