Developments in the private network space are moving quickly, with global enterprises looking to benefit from bespoke connectivity to meet their business objectives and needs. A recent report from IDC predicts that the private LTE/5G infrastructure market is set to reach $5.7 billion in 2024. This reflects the aggressive global momentum behind private networks as regional regulators make additional spectrum available to enterprises. The closing of the Citizens Broadband Radio Service (CBRS) spectrum auctions in the U.S. for Priority Access Licenses (PALs), is a prime example. This process alone raised a staggering $4.5 billion in bids, and will now drive nationwide roll out of private LTE and 5G infrastructure.
CBRS is giving U.S. enterprises an exciting opportunity to get into the driving seat and determine the future of their connectivity infrastructure. The newly allocated CBRS spectrum will enable new private networks that span industry vertical markets, supporting new use cases and business models that would not otherwise be possible on Wi-Fi or public LTE networks.
The success of the CBRS auction was the first step towards democratizing private network infrastructure - making it easier for enterprises to deploy and manage their own networks. With more spectrum available for enterprise use, private network solutions are unlocking new levels of productivity, efficiency, and innovation to enable new applications across a variety of vertical markets.
Out with the old, in with the new
While public and Wi-Fi networks have long been enterprises’ go-to, private network infrastructure presents a solution to their limitations, namely where security, network coverage, and capacity are concerned. By deploying private network infrastructure, enterprises will have more control over their connectivity, and be better suited to meet their evolving needs when it comes to latency, coverage, edge or security requirements. Indeed, this is especially true now as changes in spectrum regulation has seen the emergence of shared spectrum whereby private networks can be deployed using both unlicensed and licensed spectrum. This allows enterprises to enjoy the benefits of both cellular and Wi-Fi connectivity as part of their private network deployments.
So, with a new way to deploy private LTE, and soon private 5G infrastructure, which use cases are set to benefit most from this new era of private connectivity?
The potential opportunity
One area set to benefit significantly from private network infrastructure is the education sector, where run-of-the-mill Wi-Fi just won’t make the grade. schools or universities, require deterministic wireless networking that reaches beyond Wi-Fi capabilities to maximize security.
Schools and universities can leverage private LTE technology to guarantee secure connectivity for their students, staff and visitors across their campuses and dorms. Organizations can set network access parameters and better manage network utilization in accordance to the needs of students and staff. This in turn allows the education sector to become more innovative, enabling them to offer smart classrooms, interactive learning, as well as remote learning and teaching options. In addition, private network infrastructure can be critical in not only protecting against cybersecurity threats, but also physical threats by being able to support campus CCTV and security systems.
Another important area for private network infrastructure will be manufacturing and industrial automation. Here, private LTE/5G guarantees the network capacity and resiliency that is key for many IoT use cases that will become important in Industry 4.0 settings. For example, factories with data-intensive production lines requiring large volumes of data to be sent across locations. Private infrastructure overcomes the limitations of public networks and allows the digitalization of operations that can connect devices, staff, and vehicles. This not only ensures greater control over the entire factory floor, but also dramatically improves productivity and efficiency.
Multi-access edge computing (MEC) will also be another important area for private network deployments in years to come, especially where multi-site private 4G and 5G networks are concerned. Moving intelligence to the edge can dramatically improve end-user experience and reduce the economics associated with hosting and managing a network. It means enterprises can better allocate network resources, according to the use case requirements, and personalize services locally where they are consumed. One example of this in practice is during a sports event where content, for example a video, related to the performance is relayed in real-time to on-site sporting fans. In this scenario, a private mobile MEC network can significantly enrich the fan experience and create new monetization opportunities for the events organizers and events venues.
With so many CBRS licenses now allocated in the U.S., they are set to become a driving force behind the creation of private LTE and 5G networks in the short term and contribute significantly to the global $5.7 billion market forecast from IDC. The momentum behind CBRS means that a wide variety of U.S. enterprises are now, or will soon be, in network deployment phase. Some will opt to migrate straight to private 5G - especially those organizations that need super low-latency connectivity for mission critical applications, or for massive machine communications. However, there will also be many enterprises that will chose to deploy private LTE in the short and medium term. After all, it offers more than adequate connectivity provision for most of the network applications and services that enterprises need – especially as throughput, reliability and security can be controlled and guaranteed. Furthermore, private LTE also forms a logical and seamless upgrade path to private 5G when the need for it arises.
