O2 Telefónica in Germany, in collaboration with Nokia, has taken a groundbreaking step by implementing 5G standalone core software on Amazon Web Services (AWS). This is a significant achievement as it represents the first instance of an existing mobile operator moving its core network to a public cloud.
Traditionally, telecom networks have shifted IT and other non-core operations to the cloud, but this move by the subsidiary of the Spanish group Telefonica sets a new global standard.
Expanding horizons: Amazon, 5G, and cloud integration in Telecom
Major cloud computing giants like Amazon and Microsoft have been eyeing the telecom sector for potential revenue opportunities, despite some operators being hesitant about the ability of the public cloud to effectively manage a mobile network.
The core network, which plays a crucial role in securely routing data and calls at high speeds, typically relies on high-performance servers in data centers. Transitioning to a public cloud can reduce costs, improve scalability, and simplify maintenance without disrupting service.
Recently, there has been a growing trend towards cloud migration in the telecom industry. For example, earlier this year, NTT DOCOMO, Japan’s leading mobile operator, announced plans to deploy its nationwide 5G Open Radio Access Network (RAN) in partnership with AWS. In 2021, AWS also collaborated with DISH to expand its 5G network across the U.S. It’s worth noting that Telefonica initially worked with AWS and Ericsson before switching to Nokia and AWS for its operations.
The deployment of Nokia’s technology provides O2 Telefónica with ultra-low latency, essential for delivering advanced 5G services like extended reality and network slicing, which require instant availability and greater bandwidth capacity. Nokia’s secure and cloud-native 5G core architecture enhances O2 Telefónica’s network by enabling more flexible scaling, increased reliability, and near zero-touch automation for workload management.
This move also showcases Nokia’s ability to transition communication service providers (CSPs) to various cloud platforms, including public, private, and hybrid clouds. This flexibility allows CSPs to deploy applications and services on the infrastructure that best suits their needs. Nokia is a leader in 5G standalone core technology, serving 107 CSP customers globally and recently being recognized as an industry leader by GlobalData.
Mallik Rao, chief technology & information officer at O2 Telefónica, emphasized the strategic nature of this deployment. “With the new 5G cloud core, we are moving away from traditional architectures and focusing on modern, high-performance, and efficient network technologies.
“By partnering with Nokia and AWS, we ensure our customers enjoy an excellent 5G experience along with new digital applications.”
Fabio Cerone, GM of Telecom EMEA at Amazon Web Services, expressed his excitement about AWS’s role in this transformative project. “By utilizing Nokia 5G Core network on AWS, O2 Telefónica is changing its operating model through full automation and scalability. This will allow O2 Telefónica to dynamically scale and allocate 5G network capabilities to meet customer and new application requirements,” he said.
Raghav Sahgal, president of Cloud and Network Services at Nokia, also voiced support for O2 Telefónica Germany’s innovative move to AWS.
He stated: “This deployment, the first of its kind for an existing communication service provider, enables greater network agility and service offerings, providing Telefónica Germany with the necessary tools to efficiently manage and extract more value from its network assets.”
A growing market for telecom cloud
As the global telecom cloud market is expected to grow from US$19.7 billion in 2021 to an estimated US$108.7 billion by 2030, companies like Amazon stand to benefit significantly from this expansion. This shift underscores the changing dynamics in the telecom industry, where cloud technology plays an increasingly central role in network management and service delivery.
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