AWS Terminates Private 5G Services and Shifts to Operator Partnership Model

Amazon’s cloud computing giant AWS recently confirmed that it has stopped selling its private 5G network service launched in 2021. The company stated that spectrum resource limitations and reliance on third-party hardware are hindering service development, and customers are turning to alternative solutions that better meet their needs. However, AWS still retains the “Integrated AWS Private Wireless” plan launched in 2023 and continues to provide enterprise private network services through operator partners such as Deutsche Telekom, KDDI, Orange, etc.

This decision reflects the complex situation of the emerging private wireless network market. Dell’Oro Group analyst Stefan Pongratz pointed out that “private wireless is currently the most dynamic niche market in the RAN field, with better growth prospects than the overall RAN market. It is estimated that private wireless device sales account for approximately 3-5% of the total RAN market. The global RAN market reached a scale of 35 billion US dollars last year, mainly dominated by five major manufacturers: Huawei, Ericsson, Nokia, ZTE, and Samsung.

Reason and advantage

AWS explained that the termination of private 5G services was due to execution barriers. Although AWS Private 5G aims to simplify enterprise private network deployment, limited wireless spectrum and third-party hardware dependencies limit service development. The company emphasizes that it will proactively adjust its product line when partners can better meet customer needs. When AWS officially launched the service in 2022, it promoted the low-cost advantage of only a few thousand dollars per month, such as deploying a network to support 100 employees at a university for only $14000.

This move eliminates some of the competition concerns of operators.

The industry’s expectations for private wireless are adjusting. In the early days of 5G, manufacturers such as Nokia predicted that there may be 14 million private network sites worldwide, which is twice the number of public network macro base stations. This has attracted startups such as Celona, equipment vendors such as Ericsson, cloud giants such as AWS, and technology companies such as Dell and Cisco to enter the market. However, Dell’Oro Group points out that it takes time for enterprises to adopt private cellular technology, and it is expected that private wireless RAN revenue will increase by 15-20% in the next few years, accounting for 5-10% of total RAN revenue by 2029, while public RAN equipment revenue will decrease by 1% during the same period.