Why Private 5G Networks Could Be The Next Big Thing For Enterprises And Operators

Apr 6, 2022
4 min read
"The disagreement is understandable: everyone wants a piece of the 5G enterprise services pie, which will be far larger than 4G."

Private 5G is swiftly becoming the next big thing, spanning a wide range of industries from farms to hospitals to hotels, despite the fact that enterprises have largely disregarded it. Private networks are changing things up because they require technology from both disciplines. Public carrier networks and IT firms have never merged on a single channel; however, private networks are shaking things up because they require technology from both disciplines. Factors such as the industry's rapid and ongoing digital transformation, the convergence of telco and IT, the migration of cloud applications to the edge, and the increasing availability of spectrum, on the other hand, are all combining to create an environment in which demand for private 5G will soar.

Advantages of Private 5G Networks Over Other Networks?

First, consider how a private 5G network varies from a public 5G network. A private 5G network provides enterprises with better personalization and complete control over their connectivity, in addition to the standard 5G features of low latency, longer reach, and more capacity. This allows company leaders to implement a uniform networking strategy across the enterprise.

Private 5G networks, like Wi-Fi, require small, local cellular towers to provide internet access points. This is appropriate for huge manufacturing units, logistics warehouses, and other private organizations such as colleges that operate across multiple campuses. They can set up their own 5G network to provide a local 5G connection.

  • Private 5G networks are incredibly configurable, and they are created to a company's particular specifications. When using public 5G, users can only choose from the alternatives provided by the telecom, after which they must manage and analyze data internally.
  • Private 5G networks provide tight security because they are not required to be connected to the larger telecom network. Private 5G is therefore particularly appealing to companies that demand strong security, such as power plants and military manufacturing.
  • Businesses have always benefited from improved connections, such as the transition from 4G to 5G. However, there are numerous aspects to improved connectivity, such as increased responsiveness and the simplicity of adding more devices and sensors. Reliability, security, end-to-end control, and customization are all enhanced by a private 5G network.
  • A private 5G network is more cost-effective, faster to deploy, easier to set up, and provides more reliability and security because it does not require costly cabling and people to install.
  • The remote workforce is kept connected across numerous sites by a variety of software-defined solutions, the Internet of Things, and corporate mobile applications that generate massive amounts of data every day. Businesses can safely acquire, store, analyze, and provide actionable information for future sustainable growth with a private 5G network. It not only improves private 5Goffer device access and security, but it also provides the power and performance required for these resource-intensive IoT and big data projects.

Spectrum Provides New Opportunities For Enterprises

With the evolution of 5G technology and the availability of spectrum required to leverage 5G private networks, private 5G networks have gained momentum in the United States. Organizations can now use either unlicensed spectrum, such as the Citizens Broadband Radio Service (CBRS) band's general authorized access (GAA) tier, the licensed spectrum from one of the organizations that purchased CBRS priority access licenses (PALs) in the 2020 FCC auction, spectrum secured in the recent C-band auction, or spectrum (high or mid-band) from a licensed wireless provider. For example, in Rock Island County, Illinois, John Deere purchased CBRS spectrum PALs for its global headquarters and plants. It also bought PALs for four counties in Iowa where it has other manufacturing sites.

Verizon will offer AWS Outposts, a private mobile edge computing service for enterprises, in October 2021. When paired with Verizon's private 5G networks, 5G Edge with AWS Outposts, a fully managed solution, may enable a consistent hybrid experience by providing the same AWS infrastructure, services, APIs, and tools to almost any environment, whether a data center, co-location space or on-premises (known as On-Site 5G).

At its factory in Hickory, N.C., one of the world's largest optical cable manufacturing factories, Corning Incorporated is using Verizon's On-Site 5G and private mobile edge computing services. The company is experimenting with high-speed, high-volume data collection on the manufacturing floor, quality assurance, and on-premises inference utilizing machine learning using Verizon 5G Edge with AWS Outposts and On-Site 5G.

The Future of Private 5G Networks

A private 5G network is an enterprise-dedicated network that provides communication links to people or things belonging to a specific firm and provides unique services required for the enterprise's business. When compared to LTE, Wi-Fi, or Ethernet, private 5G networks have several advantages. Private 5G networks not only meet high security, privacy, and data isolation requirements, but they can also include network slicing, which may be used within a private 5G network to construct SLAs for specific devices and/or applications.

According to an IDC analyst team, the market for private cellular network infrastructure would be worth $ 5.7 billion by 2024. The analysis also suggests that the commercialization of 5G would have a significant impact on the private 5G network. It is predicted that MNOs and organizations would see private 5G become the foundation of their operations.

Private 5G networks are already proving valuable for organizations in terms of decreasing costs, reducing energy use, and analyzing business-critical data in real-time, providing glimpses of the future. Although, with the proliferation of the IoT device ecosystem, it will be some time before we see more enterprise use cases for private 5G. Private 5G networks are poised to create opportunities for public and private companies to unleash efficiency, exploit data in real-time, and earn new revenue in the coming years.

Bottom Line

Enterprises have always been at the forefront of technology and the first to accept new ideas. 5G is no exception.
However, while recent network generations, like 4G, appeared to be focused on enhanced media experiences that largely benefited consumers, 5G Private Networks have the potential to change the industry.