Incumbent vendors cannot ignore the market-disrupting implications of AT&T’s and Swisscom’s outsourced 5G mobile cores

DARYL SCHOOLAR | July 1, 2021

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At the tail-end of June, both AT&T and Swisscom announced plans to outsource their 5G mobile core networks to cloud service providers. AT&T’s announcement was with Microsoft Azure. Swisscom’s was with AWS. With the AT&T deal, Azure will be acquiring IP and engineering expertise from AT&T that it can resell to other operators. It was reported that Azure will offer jobs to current AT&T employees, as well. This move suggests Microsoft understands how critical it will be to retain talent that has deep networking knowledge. Swisscom’s deal does not appear to include AWS acquiring any Swisscom assets or employees, but the operator did say it will be using AWS for its own IT applications.

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