Despite early promises of private 5G delivering significant advantages for enterprises, AWS has quietly exited the space. The company has officially retired its private 5G service, first introduced at AWS re:Invent in November 2021.

Figure 1. AWS Retires Private 5G, Pivots to Partner-Led Wireless Solutions

Initially launched as a managed, pay-as-you-go solution, AWS Private 5G enabled enterprises to deploy and scale on-premises mobile networks. Customers could define their network locations and capacity needs, while AWS handled the infrastructure — including servers, small-cell radios, 5G core and RAN software, and SIM cards. Figure 1 shows AWS Retires Private 5G, Pivots to Partner-Led Wireless Solutions.

AWS Shifts Gears on Private 5G, Focuses on Partner-Driven Approach

A spokesperson for AWS acknowledged that while the intent behind AWS Private 5G was to simplify private mobile network deployment for enterprises, several roadblocks hindered its success. “Several challenges limited AWS’s ability to execute against the original vision for customers, including limited wireless spectrum availability and reliance on third-party hardware,” the spokesperson said. “After evaluating customer usage and feedback, AWS determined that customers were increasingly gravitating toward other solutions that better aligned with their needs.”

Rather than a full retreat, the move appears to be a strategic pivot. Private 5G continues to gain traction in local area networks (LANs) across enterprise campuses, warehouses, factories, and other venues, where its benefits — including enhanced security, lower latency, higher capacity, and better customization — are increasingly sought after.

While AWS has sunset its standalone private 5G offering, it will continue supporting enterprise connectivity through its Integrated Private Wireless (IPW) service. IPW links customers to private 5G and 4G LTE networks offered by AWS’s telecom partners.

“This feels less like a retreat and more like a strategic realignment,” said Mike Leibovitz, a Gartner analyst specializing in enterprise networking. He noted that AWS’s shift toward IPW may be a pragmatic response to the spectrum and hardware challenges that hindered its own service rollout, allowing the cloud provider to remain active in the private wireless market through a more collaborative model.

Private 5G Remains a ‘Massive Opportunity’ Despite AWS Exit

AWS’s exit from its private 5G offering doesn’t reflect a decline in market interest — quite the opposite. Industry analysts continue to see strong momentum in the space.

According to a recent report from Dell’Oro Group, private wireless radio access network (RAN) revenues surged by more than 40% in 2024, far exceeding expectations. The findings highlight that enterprises are increasingly investing in private 5G solutions to enhance connectivity, security, and performance across campuses, factories, and industrial environments.

Private 5G Still a ‘Massive Opportunity’ Despite AWS Exit

AWS may be bowing out of the private 5G market, but industry analysts stress that enterprise interest in the technology remains strong — and growing. According to Stefan Pongratz, VP at Dell’Oro Group, private wireless has begun to show real traction. “It is still early in the private 5G journey [and] it will take some time before enterprise spending will move the larger RAN needle,” Pongratz said. Still, he noted that private wireless “moved above the noise” in 2024, accounting for approximately 3% to 5% of total RAN revenues. Dell’Oro reported over 40% growth in private wireless RAN revenues last year, calling private 5G a “massive opportunity” for the long term.

Major players leading the private wireless RAN space include Huawei, Nokia, and Ericsson, while other significant contributors range from global carriers like Verizon, AT&T, and Deutsche Telekom, to enterprise tech firms such as Cisco, Juniper Networks, NTT, and Celona.

Gartner’s Andrew Lerner noted that when AWS first launched its Private 5G service, there was considerable buzz around its potential to disrupt traditional telecoms. “However, fast forward to now, and AWS is not prominently mentioned by our clients when evaluating private 5G,” said Lerner, a distinguished VP analyst at Gartner. He added that enterprise demand for private 5G remains largely confined to specific use cases requiring ultra-low latency, high performance, or support for non-IT devices.

Reference:

1. https://www.networkworld.com/article/3992173/ip-fabric-weaves-advanced-firewall-discovery-into-network-assurance-platform.html
2. https://www.globenewswire.com/news-release/2025/05/21/3085749/0/en/IP-Fabric-Advances-Security-Posture-Assurance-with-Firewall-Discovery-and-Simulation.html

Cite this article:

Priyadharshini S (2025), AWS Ends Private 5G Offering, Leaves Market to Telecom Giants and Industry Leaders, AnaTechMaz, pp. 165