Private 5G Networks: Expanding the Telco Landscape Beyond Traditional Service Providers

The telecommunications landscape is no longer exclusively about communications service providers (CSPs) – or even the digital service providers (DSPs) into which many are seeking to evolve. The rapid expansion of the Internet of Things and the arrival of 5G business opportunities make possible a world in which everything is connected, and that’s something from which companies outside the traditional telco sector can benefit.

How to make a use of private networks with 5G new business opportunities

Persuasive business cases are already being made for the use of private networks in many industries. They include companies operating in the utilities, transport, smart cities and Industry 4.0 sectors, among others. Other factors have also combined to make the idea of running a private network attractive in many industries. In the United States, for example, spectrum release and regulations that exclude mobile network operators from obtaining certain frequencies leave the market open for companies from other sectors. Thus, private networks are not only seen as increasingly desirable – they are also available.

As a measure of just how fast and wide-ranging the implementation of private 5G networks is expected to be, a 2020 report by Deloitte suggested that it would take until only 2024 for the annual value of telco equipment and services in private networks to reach tens of billions of dollars. That’s because, in any given private 5G network deployment, there may be thousands of individual connectivity points – from heavy machinery to tools, other equipment, products, and even staff.

What challenges must 5G service providers face

Different industries and organizations will have their own requirements of private networks. For example, an individual factory implementing the Industry 4.0 model will require certain specifics that a large-scale transport operator does not. In addition, the route to private networks might be different, depending on whether a network slice supplied by 5G providers is sufficient, or whether a fully in-house, “closed” network is more desirable.

Yet, there will also be common denominators – most commonly high reliability and security. A 5G private network can deliver on both these counts, promising 99.9999 per cent reliability, and data/network protections that can be tailored and adapted to meet even the most rigorous security demands.

Discover more about private networks, network slicing, and other expected developments for the telco industry in 2022 and beyond, in Comarch’s new ebook – “Comarch 2022 Telco Trends Alert” – available now to download for free. Get your copy here.