Amazon enters the 5G market, a new threat for operators? -!: All the details about Amazon enters the 5G market, a new threat to operators? -! are on topwhich.com. I am happy to present you all the developments about Amazon enters the 5G market, a new threat for operators? -!. Here’s what you need to know about Amazon enters the 5G market, a new threat to operators? -!, here are the details … One of the largest online stores where any user can create a seller profile, Amazon, has just take a crucial step of potentially momentous importance for the telecommunications business: the launch of AWS private 5G , a proprietary solution to build private 5G networks focused on the world
This announcement poses a significant threat to the operator sector telecommunications and its future prospects thanks to 5G. There is a consensus in the industry that most of the incremental business that 5G technologies can produce will start in the corporate world through the use of private 5G networks, virtual or not, for enterprises.
Qualities of 5G networks
These networks are capable of connecting millions of devices at the same time and reduce latency , which makes them a perfect tool to increase automation and robotization of industrial companies, as well as improve the management of companies in general. For this reason, traditional operators such as Telefónica or Vodafone are focusing on building private networks or virtual private networks for these companies. Therefore, Amazon’s launch of AWS private 5G threatens what appears to be the most promising source of additional revenue for the telecommunications carrier sector with the arrival of 5G.
A warning also for Cellnex
This business niche has been identified as a great source of income by another type of companies that also want to benefit from what the corporate 5G will mean. This is the case of companies such as Cellnex, American Tower or Vantage that seek their role in the sector and already have their first contracts. Technology consultants and integrators such as Accenture or Rakuten are also in.
For the moment, the model proposed by telecommunications operators is mainly oriented towards the offer of virtual private networks, since it is the most advantageous offer. In fact, 5G allows the so-called Network Slicing , which makes it possible to create virtual subnets that have different capacities. For example, the ability to take on many devices that have little demand for speed and latency in order to connect streetlights, wastebaskets or parking space of a smart city . Also to have a very low latency to be able to control the robots in a factory in real time.
Amazon uses public frequency bands
Amazon’s offer is based on the use of a frequency band for public use and open access in the United States called Citizen Broadband Radio Service ( CBRS) . 150 MHz in the 3.5 GHz band, exactly the same as that supports the fundamental use of 5G in Europe. In fact, in some European countries such as Germany, states have set aside frequencies in that band for companies to use directly.
On the other hand, in Spain there is still no has reserved spectrum for direct use by companies. It is foreseeable that part of the band of 26 GHz that the government is going to tender in 2022 is reserved for direct corporate use. By definition, enterprise 5G networks tend to be limited to a specific factory or campus.
Advantages and disadvantages of the Amazon model
The biggest advantage of AWS private 5G is the enormous power of Amazon Web Services (AWS), the world’s largest cloud giant , that this year will bill about 60. 000 millions of dollars. Therefore, it offers its technological reputation to many companies that have already relied on AWS for critical parts of their business. It uses a payment model that does not depend on traffic or the number of connected devices, which does not imply an initial outlay. AWS takes care of everything , the customer only has to manage the network from the same AWS console from which they can manage their cloud services.
Regarding the disadvantages or disadvantages, the main one is that Amazon does not have frequencies . In the United States, the CBRS band is used, which can only be used for small companies and not very dense environments where there is no interference with other users. Its performance in complex installations, where precise radio planning is necessary, remains to be seen.