Telefónica O2: one million customers in the cloud core network

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Telefónica Deutschland is making progress in migrating the core network to the cloud. The network operator said on Thursday that the cloud core network now has one million customers since the launch of the “5G cloud core” in May this year. Telefónica Classic is the first network operator with mobile networks to outsource its core network to the cloud.

In May, Telefónica began outsourcing its core network to the Amazon AWS cloud. In addition to AWS, the network operator is working with Finnish supplier Nokia. Data from different antenna locations comes together in the core network and is further processed with centralized functions such as assignment to customer accounts, call transfer and billing.

AWS instead of on-premises

Traditionally, this occurs on hardware that resides in our own data centers. Telefónica’s old core network is also already in the cloud, but it is in-house: with Ericsson’s cloud software and hardware in its own data centres. As virtualization increases, such core functions can also be implemented on the hardware of hyperscalers like AWS.

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This is still new territory for network operators. “Since no other existing telecom provider in the world has taken this step, our teams at AWS, Nokia and o2 Telefónica have done some technological pioneering work of which we are very proud,” says Bas Hendrix, Head of Cloud. Telefónica Germany -core network and its somewhat cumbersome title “Head of Digital Cloud Networks and Orchestration”.

Telefónica expects some benefits from this. On the one hand, updates can be run faster and without interruption. Even in the event of a disruption, the network operator can seamlessly switch to other cloud regions. Furthermore, the core network in the cloud is flexibly scalable – and also secure, as Telefónica emphasizes. Last but not least, a network operator can also save costs.

Software makes it cheaper

“We believe that using the public cloud will be cheaper overall,” Hendrix tells Heise Online. On the one hand, Telefónica does not have to invest so much in its computing capacity. “In addition, core network functions designed as software can be updated more quickly and cost-effectively.”

Customers don’t see anything about this. “There’s no display on a smartphone for this,” Hendrix explains. “As a rule, customers don’t pay attention to it.” Because the quality of service must be the same as the traditional network: “From the very beginning, our goal was to put the new cloud-based core network into operation with the same quality and all functions as our traditional core.”

Whether a customer is routed through the cloud or through the traditional core network depends on a variety of factors. “This includes relevant area, network coverage and device characteristics,” Hendricks says. The network controls this automatically. First, there are customers who are logged in to the 5G standalone network. “After we expanded the functions to 5G nonstandalone and 4G during the project, we can now also let customers run these mobile communications standards through the new core.”

Telefónica will continue to expand its cloud core network next year. “We want to further increase the use of cloud in our network sector in 2025,” says Hendrikx. “We see the benefits for our network architecture and for our customers. That’s why we are partnering with AWS and Nokia as well as Ericsson.” “With plans to further develop cloud-based core network functions.”

(vbr)