In a recent article on Fierce Wireless, analyst Kyung Mun offers a window onto the future of Private 5G networks.
Starting out from the current mobile industry innovation trends, a key through line is evident: the focus on modularization of connectivity and computing functions, which offer the opportunity and flexibility to deploy networks in a new way. This enables new players to provide a fresh perspective on how a network should be deployed and offered to end customers, which is playing out in the private LTE and 5G marketplace.
Enterprises of various sizes and vertical markets are looking to tap into the 5G promises of reliable low-latency links, via the following business models:
- Enterprise-direct – an enterprise fully owns and manages a standalone private wireless network on-premise;
- Hybrid managed service – a specific portion of a private wireless network is owned and operated (e.g., RAN) while others are outsourced (e.g., core, applications);
- Private wireless-as-a-service – an enterprise adopts a full cloud model and attains private wireless connectivity “as a service” from a third-party provider (Variations on this theme can include locally managed radios, or network slicing).
Some industries like utilities prefer the Enterprise-direct model as they are accustomed to making fully capitalized network investments that last a couple of decades. Meanwhile, smaller enterprises may be looking to the Hybrid managed or Private wireless-as-a-service model to alleviate upfront costs.
Mun, concluding his analysis: “Over the next ten years, we expect Private 5G networks to lead innovation in many ways, including virtualization and the use of open-source for simple and scalable software. The integration of private 5G and edge computing is likely to be tighter and more effective than in legacy telecom networks. In time, we can also expect the private 5G world to bring these key innovations back into public 5G networks, creating benefits for everyone.”
To read the original article, click here.