Amazon breaks into Europe 5G networks with Telefonica cloud deal

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Telefonica Germany, a subsidiary of Spanish group Telefonica, plans to migrate one million 5G customers to Amazon Web Services (AWS) cloud later this month. This move, a global first, involves switching the core network of an existing mobile operator to a public cloud.

While other telecom networks have moved non-core operations to the public cloud, this marks a significant step in the telecoms sector. The decision reflects AWS and other cloud-computing giants’ efforts to enter the telecoms market, driven by the potential for billions of dollars in revenue. Mallik Rao, Chief Technology & Information Officer at O2 Telefonica, aims to see the system working for at least one to two quarters and plans to move 30-40% of the customer base to the cloud by 2025-2026.

The core network, critical for routing data and calls at high speeds, will benefit from cost savings, increased scale, and improved repair capabilities without service disruption. AWS and O2 Telefonica did not disclose financial details of the deal. Dish, another U.S.-based telecom company, became the first to use AWS cloud for its core network in 2021, benefiting from not having to modify existing systems. Nokia will provide the software, while AWS will supply the infrastructure for Telefonica Germany’s transition.

Source: Reuters

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