5G Private Networks: How Will They Change the Business Landscape?
Published on : Thursday 02-06-2022
To manage new Private 5G Networks, CSPs will need to establish specialised regional (edge) network operations centres.
5G stands for fifth-generation mobile networks. It offers higher bandwidth than 4G LTE and Wi-Fi and delivers lower latency, while using less energy.
Although global 5G adoptions have started, it is still a fairly new technology. While its broad concept is familiar, a deeper understanding of its use cases is still in development. It is the first mobile communication technology designed to facilitate communication between machines, systems, objects, gadgets, and humans.
5G-enabled networks must be built from the ground up to be agile, and need to be robust enough to facilitate seamless device interaction.
How 5G's widespread deployment could disrupt legacy operations
The potential of 5G has been acknowledged in the corporate sector for years. Faster speeds, reduced latency, and the ability to connect more devices with 5G mobile technology mean a brighter tomorrow. 5G goes well beyond what 4G or Wi-Fi 6 can deliver, by building upon a foundation for omnipresent, ultra-fast communication.
Manufacturing, healthcare, and other industries are increasingly integrating technology such as IoT, AI and ML to embrace greater interconnectivity. 5G adoption would have an impact on a wide range of enterprises for two key reasons, in addition to boosting internet connectivity:
1. Massive machine-type communications (mMTC): 5G will enable massive connectivity for mMTC, enabling industrial IoT at scale. This will facilitate communication among IoT sensors within a square kilometre region.
2. Ultra-reliable low-latency communication (uRLLC): 5G will allow a low-latency and reliable communication network with the aid of uRLLC.
Leveraging 5G technology for organisations means more than simply connecting to publicly available 5G networks like regular users. Businesses need bespoke 5G networks that can support the concept of the ‘smart factory’ or Industry 4.0.
Private 4G LTE networks have been existing for a while now, but their popularity has skyrocketed only in recent years. Its broad adoption in other industries, on the other hand, has remained a distant objective. The upsurge of 5G in the coming years will restructure this establishment with its low latency; high bandwidth is expected to boost its adoption and deployment prospects.
Understanding private networks: Impact and implications
Let's look at it this way: A private network is any connection inside a network that complies with regulations to ensure security.
To be more specific, Private LTE/5G networks are mobile networks that are specifically intended to support vital company operations. These networks are usually constructed in a single area, such as a building or so. Here are some of the most prominent deployment models:
1. Dedicated Private Network: Deployed on-site with radio access, core edge computing assets, and a MEC application aimed at single corporate use.
2. Hybrid Private Network: Integrates public mobile network components with specialised on-premises pieces.
Is it a good idea for businesses to use private LTE/LTE/5G networks?
Several factors cause us to answer yes, including:
i. 5G can eliminate many Wi-Fi installation issues while also offering a secure and dependable networking infrastructure, and+
ii. Private networks can assist enterprises in overcoming data privacy concerns by providing them with greater control and visibility over mission-critical data, and
iii. Private LTE/5G networks are becoming more popular as large-scale digital transformation initiatives within businesses advance.
Opportunities for the LTE/5G Private Networks Ecosystem
By 2028, the worldwide market for 5G will reach USD 14.28 billion, at a CAGR of 39.7 percent between 2021 and 2028. This expansion can be attributable to the rising need for dependable low-latency network connectivity and increased security for key applications.
Several industries, including manufacturing, oil and gas, mining, and energy and utilities, are likely to invest heavily in 5G network expansions. Over the next several years, there will be a surge in the deployment of 5G private networks across a variety of businesses. The technology has already demonstrated significant potential, and there are some incredible 5G use cases available:
a. 5G network technology is rapidly gaining momentum in the industrial and manufacturing industry, particularly as businesses focus on providing secure and robust networks to drive their Industry 4.0 activities.
b. Another area where a 5G network is likely to play a major role is in the global automobile sector, particularly in the commercialisation of artificial intelligence (AI) and self-driving cars. 5G networks with ultra-low latency capabilities can assure that all these technologies are running at their maximum potential.
c. Private networks are also projected to gain traction in the healthcare sector, as the number of patients requiring intensive care units continues to rise. 5G can also stimulate innovation in other areas, such as remote surgery and specialised care, by enabling doctors to offer specialised and critical care from remote regions.
d. The logistics sector is going to be one of the first movers when it comes to 5G network deployments. The technology can allow companies to seamlessly track the movement of goods with the help of sensors embedded within packages, shipping containers and other items such as heavy machinery.
e. Private 5G networks can outperform public networks in terms of mobile connectivity. This makes them perfect for offices, stadiums, and airports. The use of 5G private networks across sectors will skyrocket in the next few years. It's in its early phase of deployment, with several use cases in development.
Way forward: Enterprise edge nodes and deeper partnerships in driving private 5G networks
Private 5G networks are complex to manage. Businesses, therefore, often require customised solutions based on requirements that vary by the nature of their sector and the size of operations. To manage new Private 5G Networks, CSPs will need to establish specialised regional ('edge') network operations centres to manage new Private 5G networks.
The industry is also realising the need for a partner ecosystem that includes system integrators with extensive expertise in industry vertical solutions as well as the domain knowledge required to operate private networks. As the partner ecosystem matures and grows stronger, we can therefore expect to witness a rise in the role and prominence of the System Integrators in driving the future of private 5G networks.
Article Courtesy: NASSCOM Community – an open knowledge sharing platform for the Indian technology industry: https://community.nasscom.in/communities/analytics/5g-private-networks-how-will-they-change-business-landscape
(This article is credited to L&T Technology Services)