Amazon and O2 Telefónica enter European 5G market with cloud deal

Germany’s O2 Telefónica has taken a groundbreaking step by partnering with Nokia to deploy 5G independent core software on Amazon Web Services (AWS).

This marks an important milestone as it is the first instance of an existing mobile operator moving its core network to the public cloud.

Telecom networks have traditionally moved IT and other non-core operations to the cloud, but this shift by a subsidiary of Spain’s Telefonica Group sets a new global precedent.

Expand horizons: Amazon, 5G and telecom cloud integration

While some carriers have reservations about the public cloud’s ability to effectively manage mobile networks, large cloud computing giants such as Amazon and Microsoft have been eyeing the telecom industry’s lucrative revenue potential.

The core network is critical for securely routing data and calls at high speeds, often relying on high-performance servers in data centers. Transitioning to the public cloud can reduce costs, increase scalability, and facilitate maintenance without disrupting service.

In recent years, the telecommunications industry has been increasingly migrating to the cloud. For example, earlier this year, Japan’s leading mobile operator NTT DOCOMO announced plans to partner with AWS to deploy its nationwide 5G open radio access network (RAN). Back in 2021, AWS also partnered with DISH to expand its 5G network across the United States.

The deployment of Nokia technology provides O2 Telefónica with ultra-low latency, which is critical for delivering advanced 5G services such as extended reality and network slicing, which require instant availability and greater bandwidth capacity. Nokia’s secure, cloud-native 5G core architecture enhances O2 Telefónica’s network by enabling more flexible scaling, higher reliability and near-touch automated workload management.

The move also demonstrates Nokia’s ability to transition communications service providers (CSPs) to various cloud platforms, including public, private and hybrid clouds. This flexibility enables CSPs to deploy applications and services on the infrastructure that best meets their needs. Nokia is a leader in independent 5G core technology, serving 107 CSP customers around the world and was recently named an industry leader by GlobalData.

Mallik Rao, chief technology and information officer at O2 Telefónica, emphasized the strategic nature of the rollout. “With the new 5G cloud core, we are moving away from traditional architecture and instead focusing on modern, high-performance, and efficient network technology.

“By partnering with Nokia and AWS, we ensure our customers enjoy a superior 5G experience and new digital applications.”

Fabio Cerone, general manager of Telecommunications for Europe, Middle East and Africa at Amazon Web Services, shared his enthusiasm for AWS’s role in this transformative project. “By using Nokia’s 5G core network on AWS, O2 Telefónica is redefining its operating model through complete automation and elasticity at scale. It will enable O2 Telefónica to dynamically scale and allocate 5G network capabilities to meet customer needs and in the The needs of new applications running on the new core.

Raghav Sahgal, President of Nokia Cloud and Network Services, also expressed support for Germany’s O2 Telefónica’s innovative measures on AWS.

He said: “This deployment, the first major deployment by an existing communications service provider, will improve network agility and service offerings, and provide Telefónica Germany with the ability to effectively manage and derive greater value from its network assets. All tools needed.

The growing telecom cloud market

The global telecom cloud market is expected to grow from US$19.7 billion in 2021 to US$108.7 billion in 2030, and companies such as Amazon will benefit greatly from this expansion. This shift highlights the evolving dynamics of the telecommunications industry, in which cloud technology plays an increasingly important role in network management and service delivery.

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Label: 5G, AWS, cloud, network, Nokia, public cloud