Friday, December 10, 2021

Is AWS a Threat to Mobile Operator Private 5G?

As always, opinions differ about the amount of market share the new AWS Private 5G offer will take. Amazon Web Services says it is a pre-packaged offer aimed at smaller organizations. AT&T seems to agree, at least for the moment, saying its own offers are aimed at more-complicated use cases. 


Predictably, Verizon says it is not worried about AWS Private 5G. Ignore for the moment that this is what always is said when a new competitor enters a market. Ignore for the moment the typical attack profile, which is for a competitor to start out on the low end of the market, then gradually add more features and robustness, eventually creating a product able to compete at every level of the market.


One might make the same observation about AWS Cloud WAN, which offers a “managed wide area network (WAN) service that makes it faster and easier for enterprises to build, manage, and monitor a unified global network that seamlessly connects cloud and on-premises environments,” says Amazon Web Services. 


Early deployment data shows that mobile operators already compete with the expected range of competitors, including system integrators, do it yourself, specialist providers and--perhaps most importantly--mobile infrastructure providers. 


In the third quarter of 2021, mobile operators supplied a significant number of private 5G networks for which data was available, according to Analysys Mason. Still, infrastructure providers supplied the greatest number of networks. 

source: Analysys Mason


The point is that private 5G already is supplied by a range of contestants. AWS is simply the latest new entrant. And while future trends may unfold in a different pattern, mobile operators are today the second-largest provider of private 5G networks. 


And there is at least some evidence of significant demand for mobile operator supply of private 5G networks.   


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