With the Telefonica cloud partnership, Amazon enters the European 5G network market

Later this month, Telefonica Germany will migrate one million 5G users to the AWS cloud, business officials told Reuters. This is a daring step by the American internet retailer to enter the international telecom space.

While other telecom networks have shifted non-essential functions like IT to the public cloud, the Telefonica subsidiary's decision marks the first ever worldwide instance of an established mobile operator moving its core network to the public cloud.

Attracted by the prospect of billions of dollars in income, major cloud computing services companies like Amazon and Microsoft have been attempting to get more involved in the telecom industry; nonetheless, operators have remained dubious about public clouds' capacity to manage a mobile network.

A mobile network that securely routes data and calls at fast speeds is powered by its core network, which is made up of high-performance servers housed in data centres. Using a public cloud will save expenses, expand in size, and enable maintenance to be performed without affecting service.

Having constructed its mobile network from the ground up, American company Dish became the first telecom provider to employ AWS cloud for core network in 2021.

Chief Technology and Information Office at Telefonica stated that he needs to see at least one or two quarters or progress with a roadmap to move around 30-40% of customer base by 25’-26’.

The company has approximately 45 million customers in Germany.

The worldwide telecom cloud market is anticipated to increase from $19.7 billion in 2021 to $108.7 billion in 2030, which is predicted to propel the expansion of businesses like Amazon.

(Sources: investing.com, reuters.com)