Be honest. As we begin 2023, is 5G where you expected it to be?
Even though 5G investments are already paying off for some leading communications service providers through areas like increased video/gaming usage on 5G (vs. 4G) and customized network packages, some may be missing its long-term impact. And that’s likely due to misconception — because now isn’t the time for mass monetization, but a time to prepare, experiment and use new approaches to better suit our society.
With this, private networks, where physical locations can ensure they have the right quality of service and dedicated resources to connect their business, will also become a critical piece of how 5G will move forward in 2023. By leveraging private networks, enterprises can create a unique experience per use case, mixing different areas like security, devices, sensors and machine learning to build what they need.
Where the private network opportunity lies
Despite current market conditions, spending on 5G and LTE private networks is cautiously growing — expected to reach $7.7 billion in 2027, according to Analysys Mason. Furthermore, 35% of this spending will be generated by the manufacturing sector and 32% by the mining, oil and gas sector alone.
This isn’t just talking, but something that’s coming to fruition. With partners in our 5G Experience Lab and beyond, we’ve already seen an abundance of 5G investments possible through private 5G networks and customized network packages. For instance, how doctors can virtually scrub in from any location and guide on-the-ground surgeons, facial recognition to determine access eligibility and personalize commerce experiences, or how farmers can save water by having a better handle on their crops’ needs. And let’s remember private networks’ ability to help close the digital divide by providing coverage where it may not have been possible before.
Although these are just a few use cases, they showcase the power of deploying 5G and private networks to create positive environmental and societal changes.
Preparing for the future
For communications service providers, private networks are an opportunity to upsell existing enterprise customers with new products and services, opening new revenue streams. According to Omdia, 99% of enterprises buying into private networks plan to purchase additional services, which shows a clear opportunity for those who create the right experience. In 2023, expect utility companies to be one of the first to make the leap towards private networks.
However, deploying a private network is an intricate process that requires a broad range of skill sets, components and technologies. Taking a step back, experimenting and figuring out what requirements are needed is critical.
Further, private networks must be tailored to the requirements of a specific use case and enterprise, whether a small business, a large enterprise, or a college campus. It’s not one size fits all, and this is a surefire way to fail. This isn’t just on the technology side but on the cost side when it comes to subscription or project-based models.
Lastly, having a clear vision for future capabilities and the degree to which the enterprise wishes to manage the network’s operation will help provide the right end-to-end experience, integrated with existing systems and infrastructure, right from the start.
As 5G continues its journey forward, private networks and the experiences they enable will play an essential role. And with this, 5G will finally be seen as something beyond just faster connectivity, but a critical technology that better serves all of us. To get started, consider establishing your business’ unique requirements and kick off a list of the vendors and partners that can help meet those requirements, which will put you on the right path toward implementation and deployment. The CSPs that prepare their private enterprise strategy now and experiment with what’s possible will be miles ahead of the competition.
