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"Operators and Ecosystem Players Are Vying to Address the Private 5G Opportunity"
Private 5G networks are gaining momentum and presenting significant opportunities within the telecom industry. These networks provide dedicated and localized connectivity solutions for specific organizations, such as enterprises, industries, campuses, or smart cities. Unlike public networks, private 5G networks offer enhanced control, security, and reliability, tailored to meet the specific needs of the organization.
A private 5G network is a firm network that uses 5G technology to provide specialized bandwidth and capacity is known as a private 5G network. Several distribution options are available to businesses:
- Totally private, with the core and radio access network of the 5G infrastructure installed on the business's property.
- Hybrid deployments include those that are semi-private, provide a managed service option, and install some workloads remotely (such as the control plane in a centralised location on a private or public cloud) while others are hosted on-premises (such as radio access network and user plane functions).
- Fully controlled via a network slicing mechanism or only partially integrated with the operator's public network.
Private mobile networks, which first appeared with 4G, are currently significantly expanding with 5G. There are currently being developed new use cases for cutting-edge technologies in the areas of decision-making, robotics, autonomous vehicles, and connected machines, as well as video (virtual reality, augmented reality, digital twins, immersive gaming, and video surveillance). Ports, supply chains, warehouses, mining, healthcare, education, and manufacturing activities are among the industries they target.
By supplying dedicated spectrum slices and their expertise to support innovative services with high service level expectations, Mobile Network Operators (MNOs) can collaborate with suppliers and system integrators to put these private networks into place. MNOs may potentially collaborate with hyperscalers like Amazon/AWS and the IT sector to deliver turnkey private 5G solutions that are tailored to specific business verticals and use cases.
Superfast connectivity with high bandwidth and data rates can be provided through 5G private networks. These networks also offer scalability, great reliability, and extremely low latency of nearly 1 ms. They are capable of holding large numbers of IoT-connected sensors and devices. These networks are therefore suitable for companies that need extremely low latency to handle vast networks of linked devices.
In addition to flawless communication, private 5G networks enable a variety of applications. They assist with mission-critical wireless communication with essential infrastructure, business operations, and public safety. The foundation for smart factories and smart production is laid by 5G-enabled technologies, which also provide producers with enticing advantages. These networks support use cases for cutting-edge technology including autonomous vehicles, collaborative mobile robotics, automated guided vehicle systems, augmented reality (AR), virtual reality (VR) headsets, and predictive maintenance, among others.
Anytime, anywhere free-roaming immersive experiences made possible by 5G will make eMBB services the revolutionary applications of the early 5G period and propel the explosive development of Private 5G technology.
Some of the use cases of Private 5G include
Supply chain management and logistics : Private 5G networks can enhance logistical processes by providing real-time asset tracking, inventory management, and tracking of goods. They can help with automated warehouse management, driverless cars, and improving the overall efficiency and visibility of the supply chain.
Smart grid: Smart grids enhance the security, stability, and operational effectiveness of existing electricity systems by integrating information, communication, and control technology.
Smart cities and smart driving: Private 5G networks play a crucial role in building smart cities. They support intelligent infrastructure, including smart grids, smart lighting, traffic management systems, and public safety applications. These networks can enable efficient urban services, enhance citizen safety, and support various IoT-based applications. The intelligent driving technology will be safer and more effective when used with 5G networks. Fully autonomous vehicles are anticipated to be widely used by 2025.
Manufacturing and Industrial Automation: Private 5G networks can provide real-time monitoring and management of production operations, enhancing productivity, efficiency, and quality assurance. They make it easier to deploy systems using AI, robotics, and industrial automation. Predictive maintenance, remote troubleshooting, and machine-to-machine communication are all supported by these networks.
Healthcare: The potential for private 5G networks in this sector is enormous. They can facilitate the delivery of high-definition medical imaging and video consultations, as well as telemedicine services, remote patient monitoring, and other functions. These networks can increase data exchange speed and reliability, which will improve operational effectiveness and patient care.
For private networks in India, TRAI had last year suggested setting aside a 40MHz spectrum block in the 3,700-3,800MHz band and 400MHz in the 2,850-2,950MHz millimetre wave band. R Venkatramani, the nation's attorney general, advocated using auctions to ensure fair spectrum distribution, but the DoT rejected these suggestions. The DoT believes that if private networks want to use spectrum in those bands, they should obtain it through leasing from telecom operators, which is a setback for companies like Infosys, GMR, and Larsen & Toubro, who all want government airwaves reserved and directly allotted for the construction of 5G private networks. If any 5G spectrum for private networks will be auctioned off is yet unknown. According to media sources, leasing from telecoms may be the only option for businesses looking to develop captive networks.
The debate over whether or not enterprises should have access to dedicated spectrum in India has been heated. Recently, however, it came to a close when DoT rejected TRAI’s plan to reserve 5G bands for private/captive networks, despite 20 companies applying for use. Instead, enterprises wanting to deploy private networks will have to lease spectrum from operators. As we have already pointed out, the opportunity is there for the taking as enterprises embark on digital transformation, especially in the manufacturing sector.
Sylwia Kechiche, an analyst with Ookla, provider of internet testing, data, and analysis says: "When it comes to private networks, the typical rules of engagement no longer apply. Thanks to network virtualization and disaggregation continuing, the ecosystem of vendors has expanded beyond traditional telco players. The crowded marketplace comprises operators, industrial players, hyperscalers, startups, system integrators, and equipment vendors, each vying to address this opportunity. These players are forming partnerships to better address the market, such as Cisco and Wipro, or HFCL and Microsoft."
"The price is worth it. Nokia stated that it expects investments in 5G private networks in India to reach around $240-250 million by 2027 in India Mobile Broadband Index 2023 report. The vendor looks to address the opportunity on its own and through partnerships with operators such as Bharti Airtel and Reliance Jio, which already own 5G frequencies. Nokia is one of many players vying to capture the opportunity. Tata Communications opened a dedicated Private 5G Global Centre of Excellence (CoE) in Pune, the US operator Verizon Wireless is also eyeing up the opportunity as it carries out PoC. Furthermore, during the Cisco India Summit, Cisco was bullish on how it can facilitate 5G monetization thanks to its private 5G as a service (aaS) offering that helps to offset the initial investment burden, and allows greater flexibility and simplicity. The vendor also sees its ability to integrate with existing enterprise WiFi networks and its security credentials as an advantage. This is important, as Wi-Fi is already well established within the enterprise IT network environment. Wi-Fi 7 promises to deliver significant bandwidth gains over earlier generations of Wi-Fi networks. Looking ahead, 5G and Wi-Fi, including Wi-Fi 6 and 7, will co-exist and complement each other in private network deployments," he added.
Kechiche further suggests that, as vendors and operators continue to form partnerships and tout their credentials, they must focus on selling outcomes from private network deployments, such as increased productivity, rather than simply selling more technology, to scale private networks successfully.