Even as telecom markets globally await the large-scale commercial roll-out of 5G services, enterprises have started exploring the idea of building private 5G networks. A private network gives the owner the ability to grant exclusive access to its network to the people and the devices authorised by it. Through private networks, organisations can ensure that only the people within their office premises have access to their network. This offers several potential benefits to enterprises. For one, companies can ensure faster speeds and better coverage for their employees since the data traffic is not shared with other cellular networks. Second, by their very nature private networks are more secure than those based on Wi-Fi and other network topologies and can thus better safeguard against cyberattacks.
The role of private networks in the case of 5G assumes much greater significance given the fact that 5G is more than just an incremental improvement in cellular networks. It holds the potential to offer up to hundred times faster speeds than 4G as well as ultra-reliable low latency communications. 5G is, therefore, poised to become the key enabler for the internet of things and machine-to-machine communications, which are finding wide applications across enterprises. 5G networks are expected to play a key role in facilitating digitalisation and automation in critical national infrastructure such as energy and transport. This raises the bar for 5G systems to provide extremely secure communication services, and the building of private networks offers a promising solution in this regard.
As a first step towards establishing a private 5G network, enterprises need to purchase spectrum from the government, telecom operators or third-party spectrum providers and procure 5G equipment such as base stations, mini-towers and small cells from network infrastructure providers. Countries such as Germany, Finland, the UK, Brazil, Australia, Hong Kong and Japan have already decided to set aside some spectrum for private networks, while other major markets have started exploring ways to enable organisations to set up captive 5G networks.
Use cases for enterprises
An increasingly large number of enterprises are realising that conventional choices for deploying wireless broadband connectivity through Wi-Fi or public cellular networks are not delivering the desired efficiency, control and security that they need to satisfy the burgeoning demands of their business operations. In contrast, private 5G networks promise a plethora of benefits, especially for business-critical and security-critical applications such as superior service security enabled by SIM-based authentication, greater control and management over network operations, and better reliability, resiliency and predictability of services. Further, private networks offer increased availability and coverage due to the new spectrum bands that became available specifically for private cellular networks. Captive networks also offer full control over the organisation’s own operating processes as the enterprise itself operates the mobile network infrastructure. Moreover, private 5G networks promise enhanced data security as the data is segregated and processed locally and separately from public 5G networks. By enabling near-real-time communication, private networks also offer controlled latency, a crucial factor in applications such as transportation.
Several major enterprises have started deploying private 5G networks that have been customised according to their specific network needs. For instance, manufacturing firms are focusing on building 5G networks that can optimise the connectivity requirements of their industrial control equipment throughout their factories and enable real-time use of robotics and augmented reality for interaction with machines and industrial processes. Automobile major Mercedes-Benz has set up a private 5G network in its assembly plant in Sindelfingen, Germany, that is helping the company automate the quality control process by enabling automobiles to be tested on the production line itself.
In the healthcare space, large hospitals are building their own 5G networks to ensure seamless telemedicine operations. For firms in the oil and gas sector, private 5G networks are slowly emerging as the preferred network architecture since many of their facilities are located outside the range of commercial networks. For instance, multinational energy company Phillips 66 has collaborated with US-based telecom operator AT&T and Accenture to deploy a private long term evolution network, upgradeable to 5G at its refineries. Oil and gas firms are exploring a variety of private 5G use cases to ensure greater worker safety and enhance their predictive maintenance capabilities.
In logistics, firms are using captive 5G networks for efficient tracking, monitoring and sorting of their packages and shipments. Educational campuses have also started preferring private 5G networks over Wi-Fi given the latter’s coverage-related issues and complex maintenance needs.
Indian scenario
The concept of private 5G networks is slowly gaining traction in India as well. According to the Telecom Regulatory Authority of India (TRAI), some of the initial use cases for private networks are likely to emerge in the automotive, ports, mines and aerospace domains. TRAI has initiated a consultative process on the pricing and quantum of spectrum/band, if any, to be earmarked for private captive/isolated 5G networks and the method of allocation for this.
Besides telecom operators, Indian IT firms are also looking at deploying private 5G networks. For instance, Tata Consultancy Services is looking to build private 5G networks on its campuses over the next six months, while engineering services provider L&T Technology Services has already established a 5G lab in Bengaluru and is preparing to launch another lab in Mysuru for developing use cases in medical equipment and manufacturing solutions. The National Association of Software and Service Companies (Nasscom), an industry body for Indian IT firms, has even urged the regulator to earmark 5G spectrum that enterprise service providers can use to set up local enterprise-level networks. According to Nasscom, if enterprises are allowed to obtain licences for spectrum use directly, they can tailor the spectrum usage according to their specific needs.
Meanwhile, telecom operators are of the view that licensed mobile operators are best suited to set up these private networks and therefore no spectrum should be earmarked for private 5G networks for enterprises. Operators believe that since they have long years of experience in deploying spectrum across a multitude of technologies, they will be able to deliver 5G services using low, mid-band and high band frequency ranges to support the full range of industrial use cases offered by 5G. The industry is now awaiting the final recommendations of the regulator in this regard.
Key challenges
A major challenge with regard to the deployment of private networks is ensuring seamless coordination among all the elements in a private 5G ecosystem. For instance, organisations need to ensure that their devices are operational on the wireless spectrum used by the private network. Enterprises also need to ensure a seamless deep integration of the 5G equipment, devices and its applications. This requires concerted efforts on the part of technology partners and system integrators. Further, organisations need to ensure that their private 5G network does not interfere with public 5G networks in the vicinity. Several other issues need to be addressed from a regulatory and policy perspective, such as the determination of the appropriate licensing framework for private 5G networks and the quantum of spectrum to be reserved for captive usage.
Conclusion
The surging data, security, digitalisation and enterprise mobility needs of private and public enterprises are driving the demand for private mobile networks based on 5G. Given the delay in the roll-out of commercial 5G services, enterprises are looking towards setting up private 5G networks that can enable them to harness the benefits of 5G, without waiting for the public roll-out of 5G services. However, there are several issues related to the licensing framework, spectrum allocation and integration of devices in a private 5G ecosystem that need to be addressed.
Net, net, the concept of 5G private networks holds promise, especially for enterprises, and their deployment is expected to increase significantly over the next few years.
