CBRS spectrum helps US manufacturing grow (Analyst Angle)

All the evidence suggests that a modern manufacturing sector needs dedicated wireless systems

The emergence of private 5G networks in the U.S. manufacturing sector is revolutionizing industrial connectivity and competitiveness. At the heart of this trend is the Citizens Broadband Radio Service (CBRS) — a shared 3.5 GHz spectrum band (Band 48) that allows enterprises to operate their own LTE/5G networks on-site. This is enabling greater automation, safety, and operational flexibility, which contributes to the renaissance of the U.S. manufacturing sector and associated investment, employment, and trade.

However, the current Congressional budget reconciliation process may be putting this at risk. Policymakers are hoping to raise significant revenues from spectrum auctions for mobile networks, but without sufficiently protecting the CBRS “innovation band” that is essential for any renewed growth and innovation in U.S. manufacturing.

Specifically, some market participants have proposed “moving” the CBRS dynamic-spectrum band to another frequency range, in order to free up the currently used spectrum for the exclusive use of the three large, national cellular carriers. This would be an enormous error, with potential harms to a wide range of important US industries that are leveraging CBRS for innovation — including manufacturing. Such a move would be a step backward in innovation, involve huge costs, and strip industrial enterprise customers of competitive or self-customized alternatives to the big carriers’ “take it or leave it” connectivity offerings — potentially leading to significant downtime at factories.

Private networks and CBRS applications in manufacturing

Manufacturers need private cellular networks for a number of reasons. Essentially, neither public (carrier) mobile services nor other private network options such as Wi-Fi and wired ethernet can satisfy all manufacturing requirements.

• Many manufacturing sites are in low-density or remote areas, with limited public 5G network coverage and capacity.
• Manufacturing plants typically have metal and concrete construction, plus internal machinery and further metalwork, which means even worse network coverage from the public operators’ networks — especially for mid-band 5G necessary for high performance connectivity.
• Wi-Fi is essential for some devices and applications, but is more prone to interference and operates at lower power levels than private 5G using CBRS. It can also be less suitable for covering large outdoor areas at major sites with multiple buildings and what might be several square miles of open space or storage area.
• Some advanced 5G features, such as ultra-low latency, are not currently available on public networks. Smaller, dedicated networks can support leading-edge capabilities more flexibly than nationwide public mobile systems.
• Private networks allow for guaranteed coverage and capacity, plus the specific technical configurations needed for niche applications. Enterprises also want direct control over connectivity and cybersecurity — and in particular, do not want sensitive data to transit over public networks. Furthermore, the company’s own operational staff need to be able to design, tune, and operate the network — and integrate it with other IT and operational systems.

Such CBRS private network systems support multiple business-critical devices and applications, fundamental to efficient manufacturing operations and worker productivity and safety. This includes connecting mobile robots and automated guided vehicles (AGVs), the provision of handheld control units and tablets for employees, and a growing use of wireless cameras for production-line quality inspection, or site security, and surveillance. Workers are now starting to rely on connected safety devices and work-wear, which can report accidents automatically, as well as AR/VR wearables, for hands-free operation of machinery.

New “smart factories” are increasingly based on wireless-connected machine and tool modules on the factory floor, so that the plant can be easily reconfigured without installing new fibre in walls or embedded in concrete floors. Private 5G can even deliver precise timing and synchronisation signals for automation systems, which historically needed wired connections.

CBRS private networks are already a reality in US manufacturing

Examples of CBRS investment by the US manufacturing industry include:

• John Deere has led the way in CBRS spectrum and private networks in manufacturing, following its purchase of dedicated protected access licenses in 2020. It has now deployed networks in multiple factories, for a wide range of applications and devices.
• Hyundai’s huge new $7.6bn HMG Metaplant America (HMGMA) in Georgia relies on private 5G and CBRS networks for systems such as automated robots and guided vehicles.
• Logan Aluminium: A large aluminium recycling producer for containers and cans in Kentucky operates a 5G private wireless network for factory automation, preventative, and worker safety.
• Tesla is migrating automation systems from Wi-Fi and proprietary wireless systems to private 5G in various of its factories.
• BMW’s Spartanburg SC plant uses CBRS for a network supporting automated transport systems which carry components and sub-assemblies around its huge site, as well as video analytics.
• Toyota Material Handling: In Columbus, Indiana, Toyota’s forklift manufacturing division deployed a private 5G network (also leveraging CBRS spectrum) covering its 200,000 sq ft production complex.

These examples illustrate that CBRS-powered private networks for manufacturing are not theoretical, but in active use in production facilities. Replacing these systems with others operating in other spectrum bands would be extremely expensive and would likely lead to considerable losses.

Similar manufacturers elsewhere around the world are also using private networks and local spectrum licenses to improve their operations. For instance, Jaguar-Land Rover in the UK uses a very similar spectrum band to CBRS to run the network in one of its facilities near Birmingham. The cost of downtime for that plant is estimated at around $60k per minute. Other manufacturers in Germany, Japan, Taiwan, and South Korea also use private 5G in shared spectrum bands.

As the United States looks to act on the current Administration’s imperative of US manufacturing growth, it is essential that US plants maintain technological leadership — or at least parity — compared to international peers. Abandoning CBRS or disrupting its operation through relocation or changed technical parameters would set America back in its manufacturing efforts. Automation and maximum productivity is particularly important given the need to compete with global manufacturers such as China and India, which have labor cost advantages.

Public networks or alternative spectrum bands cannot offer a substitute

The idea that access to CBRS spectrum could easily be revoked, without major impacts on manufacturers, is short-sighted and unrealistic. In many cases, public cellular networks from major carriers are unavailable and unsuitable, even using new features and capabilities such as 5G network-slicing. Auctioning the band to provide extra capacity on normal commercial MNO networks is unlikely to yield suitable 5G coverage at enterprise sites, especially in indoor settings such as factories and warehouses.

The proposal that CBRS users could simply be moved and accommodated in another band with dynamic spectrum access is also deeply flawed. It could take many years for equivalent solutions and spectrum bands to emerge — some of the suggested alternative bands have no existing technical standards, nor compatible chipsets, devices or network equipment. Moreover, even if another band were to emerge that could accommodate the exact same operating/technical parameters as in the current CBRS bands, modules for industrial equipment, hardened 5G modems for robots, tablets and smartphones would need to be redeveloped and recertified from scratch to accommodate a changed operating environment for CBRS.

Given it has taken over 10 years for the current CBRS ecosystem to evolve, the disruption would be immense and would devastate the innovation brought about by the CBRS ecosystem – and it would create an atmosphere of distrust in the telecoms carriers and regulatory environment that would be hard to repair.

Conclusions

All the evidence suggests that a modern manufacturing sector needs dedicated wireless systems, with specialized engineering and integration. It cannot just rely on public 5G services, no matter how much spectrum they have.

CBRS-based private networks are critical for the US objective for re-shoring manufacturing, growing skilled local employment and eliminating the trade deficit in goods, while retaining competitiveness and ability to operate productively and safely. If the spectrum they use for connecting internal systems is carelessly removed, they face significant increased costs and possible operational downtime.

Policymakers must protect CBRS spectrum for the benefit of U.S. enterprises and workers, not just in the manufacturing industry, but also in oil and gas, agriculture, and many other sectors.