Amazon Threatens Telecom Sector By Entering The Enterprise 5G Business

Amazon1An employee of Amazon selects a branded cardboard box

Renta 4 | Amazon has launched AWS private 5G, a solution for building private 5G networks with a focus on the corporate customer. One of the most attractive businesses for telecoms with the launch of 5G is expected to be the creation of private telecoms networks for corporate customers.

Until now, telecoms have offered some corporate customers virtual private networks, ” sub-letting” a part of their network, in a specific area, providing the customer with tools to manage it.

The model that 5G will enable would connect millions of devices at once, significantly reduce latency, allow segregating the network, creating sub-networks with different capacities in terms of speed or latency, and have greater security, giving the customer much greater autonomy.

In Germany, states have set aside frequencies for the exclusive use of companies and last week an agreement was announced under which Nokia will build a private 5G network for Volkswagen using the frequencies it was awarded in the 3.5 GHz band.

In Spain, spectrum has not yet been reserved for direct use by companies, although it is possible that the government will allocate some of it in the auction of the 26 GHz band to be tendered in 2022.

5G is expected to offer telecoms new ways of generating business, both at the corporate and consumer level. We will have to watch out for the possible entry of “new competitors” into these businesses, such as Amazon, and their ability to develop and compete in these businesses. In this respect, regulation remains key and we expect the authorities to create homogenous rules for all competitors.

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