Amazon’s strategic cloud partnership with O2 Telefónica opens the European 5G market - Cafeqa

Amazon’s strategic cloud partnership with O2 Telefónica opens the European 5G market


The strategic cloud contract that Amazon has with O2 Telefónica allows the company to enter the European 5G market

O2 Telefónica in Germany, in collaboration with Nokia, has taken a revolutionary step by delivering 5G standalone core software on Amazon Web Services (AWS). This initiative has the potential to revolutionize the industry. Due to the fact that this is the first time that an established mobile operator has moved its core network to a public cloud, this represents a major milestone.

This transfer by the subsidiary of the Spanish corporation Telefonica establishes a new worldwide precedent. Traditionally, telecom networks have moved information technology (IT) and other non-core functions to the cloud.


The integration of cloud computing, 5G, and Amazon in the telecommunications industry

Despite the fact that some operators have misgivings about the public cloud’s capacity to successfully operate a mobile network, large cloud computing companies such as Amazon and Microsoft have been eyeing the telecom industry for rich potential income.


Typically, high-performance servers located in data centers provide the foundation upon which the core network is built. This network is essential for the safe routing of data and conversations at fast speeds. Making the switch to a public cloud may help save expenses, improve scalability, and make maintenance easier without causing any disruptions to operations.

In the field of telecommunications, the shifting trend toward cloud migration has been gathering steam as of late. In the beginning of this year, for example, the main mobile operator in Japan, NTT DOCOMO, declared their intention to install its 5G Open Radio Access Network (RAN) over the whole country in conjunction with Amazon Web Services. In 2021, Amazon Web Services (AWS) formed a partnership with Dish Network (DISH) in order to build its 5G network throughout the United States. The fact that Telefonica first worked together with AWS and Ericsson before moving to Nokia and AWS for its operations is an intriguing fact.

The use of Nokia’s technology provides O2 Telefónica with ultra-low latency, which is important for the delivery of sophisticated 5G services such as extended reality and network slicing. These services need immediate availability and a more considerable bandwidth capacity. The secure and cloud-native 5G core architecture that Nokia has developed is beneficial to O2 Telefónica’s network because it enables more flexible scalability, better dependability, and automation that requires almost no human intervention for managing workloads.

In addition, this move demonstrates Nokia’s capacity to facilitate the migration of communication service providers (CSPs) to a variety of cloud platforms, which include public, private, and hybrid clouds. By using this flexibility, cloud service providers are able to deploy applications and services on the infrastructure that is most suitable for their requirements. In addition to being recognized as an industry leader by GlobalData, Nokia is a pioneer in the field of 5G standalone core technology. The company now serves 107 wireless service providers all over the globe.

In his remarks, Mallik Rao, who serves as the chief technology and information officer of O2 Telefónica, emphasized the strategic characteristics of this deployment. “We are moving away from traditional architectures and instead focusing on modern, high-performance, and efficient network technologies with the introduction of the new 5G cloud core.

We are able to guarantee that our clients will have a wonderful experience with 5G and new digital apps thanks to our partnership with Nokia and Amazon Web Services.

At Amazon Web Services, Fabio Cerone, who is the General Manager of Telecom EMEA, expressed his excitement about the role that AWS would play in this groundbreaking endeavor. O2 Telefónica is changing its operational model by using the Nokia 5G Core network on Amazon Web Services (AWS). This is accomplished via complete automation and flexibility at scale. “It will provide O2 Telefónica with the capability to dynamically scale and allocate 5G network capabilities in order to meet the needs of customers, as well as the needs of the new applications that will run on top of the new core,” he added.

Additionally, Raghav Sahgal, who is the head of Cloud and Network Services at Nokia, has voiced his support for the unique move that O2 Telefónica Germany has made onto Amazon Web Services (AWS).

He made the following statement: “This deployment, which is the first major one of its kind for an existing communication service provider, enables greater network agility and service offerings, and it provides Telefónica Germany with all the tools it needs to efficiently manage and extract greater value from its network assets.”

An expanding market for cloud computing in the telecommunications industry

There is a great potential for businesses such as Amazon to reap large benefits from the rise of the worldwide telecom cloud industry, which is projected to increase from an estimated US$19.7 billion in 2021 to an estimated US$108.7 billion by 2030. This change brings to light the ways in which the dynamics of the telecommunications sector are changing, where cloud technology is playing an increasingly vital role in the administration of networks and the deployment of services.

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