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It doesn't have to be done that way, but it's generally what we recommend. High level guidance here: https://docs.aws.amazon.com/whitepapers/latest/organizing-your-aws-environment/organizing-your-aws-environment.pdf
In the case of a LoRaWAN workload, I think you would probably have a separate pool of devices and gateways for each environment.
As for the IoT Core custom domains question, yes. However, are you asking in regards to your LoRaWAN workload? You can't create custom domains for the LoRaWAN endpoints (LNS and CUPS) at this time. Your LoRaWAN devices aren't provisioned with the endpoints. Only your gateways are.
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Thanks Greg. I'm aware that custom domains for LoRa LNS endpoints are not available yet. The linked document seems very helpful, I'll spend some time looking it over. In the meantime I'll work on separating accounts. I assume billing for those accounts can be rolled up into one master billing account and cost reports run by environment/sub-account?
Yes: https://docs.aws.amazon.com/awsaccountbilling/latest/aboutv2/consolidated-billing.html