2 min

Tags in this article

, ,

More and more companies are investing in private 5G networks worldwide. Availability of the network technology promises to increase shortly. This is concluded by researchers from Economist Impact in collaboration with NTT.

Companies seek faster connectivity and communication technology. According to the study, a large majority of companies say they are in the process of upgrading their networks with next-gen connectivity technologies such as wifi 6, 4G and 5G. A quarter of these respondents are exploring deploying private 5G networks. A small percentage already run such networks.

Private 5G networks are of particular interest to industrial companies that deploy smart solutions, the energy sector and the transportation sector.

Main reasons for private 5G networks

According to the report, network security is the main reason for the deployment of private 5G networks. Many respondents indicated that their current (wireless) networks are not compliant with network security standards. Some view 5G as a secure alternative or addition to wifi.

In addition, the companies are interested in 5G’s data protection functionality. For example, with the advent of private 5G networks, companies expect to exercise more control over their data, provide more coverage and speed, and get a better response time from their current operator.

Slow implementation process

Although interest in private 5G networks is growing, most companies are still taking their first steps in the area. The deployment of private 5G networks will take place over the medium and longer term. A small number of companies hope to deploy a private 5G network within six months; a slightly larger percentage in the next 12 months, and the rest in 18 months.

Integrating 5G with existing (wireless) networks and systems is one of the challenges perceived by companies planning to deploy private 5G networks. Other challenges include the complexity of the infrastructure required for 5G deployment and the lack of appropriate technical skills among employees.

Other interesting services

Furthermore, the survey shows that companies are especially interested in purchasing private 5G as a managed service. More than a third of the surveyed companies with a private 5G network works with MSP’s based on SLAs. A third prefers 5G as a hybrid solution. These companies lease their private 5G network from a mobile telecom operator.

Other services that companies purchase from vendors for private 5G include system integration, maintaining the deployed networks, and network design and planning.