Private wireless is a great idea for both enterprise customers and telecom investors. However, there are multiple issues that first need to be ironed out to reach its potential. First, there are many different versions of private wireless. Second, there are many different companies. Third, they are focused on different areas or levels. Fourth, the terminology used by different competitors is different making it difficult for enterprise executives to understand, compare and act.
All this confusion creates a problem. And a confused mind says no. That delays the entire process. So, until the customer understands the choices clearly, they will continue to move slowly, stick with older technology like Wi-Fi and public cellular, and dragging their feet even though private wireless is exactly what they need.
A confused mind says no, so private wireless needs to simplify
There are both large and small private wireless service providers. Larger ones need access to thinking and new technology. Smaller ones are not as well-known, making it harder for them to get discovered and trusted by the customer.
This is part of why private wireless is starting to move to the next stage. We are seeing an increase in partnerships and M&A between large and small companies.
The theory is large and small competitors can work together through co-opetition.
Co-opetition can help 5G private wireless grow
Let’s discuss the areas to help the private wireless industry solve their problems and accelerate growth.
There are both large companies with deep pockets, but who need this new technology and know-how in this new area. There are also smaller companies who have breakthrough ideas, but who do not have deep pockets or name recognition.
Since this space has various degrees of complexity, and since the players each have their own terminology and services, it makes it difficult for enterprise customers to understand, choose and act.
There are pros and cons to all the different levels of this industry.
The reason to learn about this and move forward is simple. Companies who adopt private wireless first, develop a competitive advantage. Until at some point all competitors are in the same space.
So, you don’t want to let easily fixed problems with confusion slow the growth of this sector.
Differences between larger and smaller competitors in private wireless
There are always first movers in every industry. The benefit to being among the first are you get the first-mover competitive advantage. Plus, you can help set the rules of competition going forward.
Partnerships and M&A are occurring because larger competitors have a well-known brand name, but they do not always have the technology and the know-how, in-house. And smaller competitors have the technology, but they are not as well-known, and they don’t have deep pockets.
That’s why working together is starting to make sense for a growing number of both large and small players.
AT&T Business, T-Mobile Business, Verizon Business, US Cellular Business
It is important to understand the private wireless space. There are a variety of definitions from basic to more advanced and more complicated from company to company in this segment.
One segment are public wireless carriers like AT&T Business, T-Mobile Business, Verizon Business, US Cellular Business, C-Spire Business and more. They offer private wireless services with more security, more customer control, more features and more options.
Another segment are many larger and smaller companies who can build a custom, private wireless network for the enterprise, ballpark, manufacturing facility, farm and so much more.
Betacom, Qualcomm, US Cellular working in private wireless
There are stand-alone competitors, and there are also companies who are joining forces to better attack this new opportunity.
Here are a few examples of companies getting together.
Betacom is partnered with Qualcomm to deliver private wireless to both of their customers. Betacom is a pioneer in private wireless, however they do not have a brand name the marketplace is familiar with yet, or the deep pockets.
Betacom also works with US Cellular to offer this private wireless service to their business customers.
Juniper Networks with HPE, Boldyn Networks acquired Edzcom
Juniper Networks has strong ideas in the private wireless space as well. However, they are a smaller company with less name recognition. This means they do not have deep pockets during this period or the brand name recognition yet.
I believe that is why they just announced a partnership with HPE. This should help both companies. It will give Juniper the backup and name recognition they need. This will also give HPE another growth opportunity in this space.
Boldyn Networks in the U.K. is acquiring the private wireless business called Edzcom from Spanish tower company Cellnex Telecom. This acquisition gave them a quick entry into this new and rapidly growing space in Europe.
Cisco, Intel, Nokia, Samsung, NTT, Shabodi, Huawei in private wireless
Looking forward, I see this private wireless space being filled with larger, well financed companies who have a strong brand name in the space.
However, it will take a while to get there.
Today, there are plenty of companies, large and small in the private wireless space. These include Cisco, Intel, Celona, Federated Wireless, Ericsson, NTT, Cradlepoint, Shabodi, Nokia, Samsung, Huawei, ZTE and many others as well to one degree or another.
In fact, today there are so many players at different levels in this space. Some offer private wireless services on their public wireless networks. Others build simple private wireless networks. Still others build more complex networks in a variety of operations.
Some manage the network, while others let the enterprise manage their own.
So, private wireless is a solid growth opportunity. However, the different terms and structures are confusing and complex and this needs to be simplified.
Private wireless needs a try-it before you buy-it option
One solution is a step-by-step approach. A try-it before you buy-it move.
Sometimes users of larger and complex networks just do not feel comfortable with a sweeping change to a critical operation to their business.
That’s why letting them try it out on a smaller section first, get used to it, learn about it and develop a comfort level could be the best way forward for many customers.
M&A and partnerships create co-opetition in private wireless
Lately, we are seeing more M&A and partnerships, and I expect this to continue as the industry segment matures. However, not every company will head down this path.
I have been invited to visit with many private wireless competitors, listened to their stories and witnessed how their technologies are transforming the space for enterprise customers.
They are looking for advice on growth from someone who understands this space, the growth opportunities and the obstacles.
This is an exciting and growing space. At the same time this is also a bumpy road which needs to be paved for growth to reach new heights. It will just take time and evolution. But private wireless is here to stay.
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