The company is expected to expand its partnership with Amazon Web Services (AWS) later this month.
As reported in Reuters, the move by the mobile network operator (MNO) is unique, as it is the first time an existing mobile operator will switch its core network to the public cloud. While there have been previous examples of cloud-based networks, these are usually deployed by emerging MNOs that do not have any pre-existing infrastructure, like the DISH network in the United States.
Telefónica, which operates under the brand name O2 in Germany, has 45 million customers in the country. Its Chief Technology & Information Officer Mallik Rao says the company wants to move 30-40% of its customer base to the cloud by 2025-2026.
Nokia which had previously worked with DISH to roll out its cloud 5G network will provide the software for the deal, while AWS will provide the infrastructure for Telefónica.
Using a cloud network allows MNOs to reduce costs and optimise resource allocation, paying only for the resources they use. It also allows networks to scale their resources more quickly to meet customer demands. However, migrating services is complex and when implemented MNOs could be highly reliant on a single cloud operator for their services.
