Where is Private Wireless or Private 5G today? Let’s take a closer look at the current state of this new segment. Look at some of what is working, what is not, the risks, challenges and the growth opportunities. There is quite a bit of growth potential if it stays focused. There are a growing number of both large and small providers. So, let us take a closer look at the new trends that are reshaping it today.
Traditional wireless has been a growth sector of telecommunications since the 1970s. That’s roughly 50 years. That being said, while it has been on an upward trajectory, it has been more like a staircase with many different growth stages and plateaus, repeated over and over.
Pros, cons and growth opportunities of Private 5G
As a Wireless Analyst, I have heard from quite a few private wireless companies, large and small, who saw strong growth opportunities in this new space. They were looking for my thoughts and opinions on the development of the sector. On the different angles to compete in this new space.
Wanting to stay plugged in to this changing industry, they are looking for the current state of the industry and what to expect going forward. They want to be prepared for what’s coming next.
They know the wireless industry can and does shift, quickly and often. They want to stay with the ever-changing growth curve and not have it move ahead leaving them behind.
Need for Private Wireless is increasing, but so are competitors
Private 5G is a very interesting space with lots of growth opportunities, but there are also plenty of risks and challenges.
Private wireless is like traditional public wireless except the enterprise customers that operates it do not have to share access, bandwidth, connectivity, speed and so much more with the public.
Plus, because private wireless is a closed system, security is also much higher than using a public network.
This puts control over crucial aspects of the wireless experience in the hands of the enterprise customer.
Too often, if the public wireless network is full of users, or when there is weak signal in different spots, that is a problem. However, with private wireless, companies can strengthen the weak spots.
Private wireless is attractive for the same reasons that companies own and operate their own computer and data networks.
The difference is the private 5G network is wireless.
That being said, there are quite a few different levels of private wireless service. This can be where this simple solution gets confusing.
The kinds of companies who offer private wireless
Enterprise customers who look into private 5G often get confused. You see there are a wide variety of different ways to set up and operate private wireless.
Let’s take a look at the size and scope of some companies and their network offerings.
Private wireless started out with a small group of small competitors, but they all had a big idea.
One example is Juniper Networks. I attended one of their Industry Analyst and Influencer events in Dallas. They were beaming over the kind of technology they offered and the kinds of customers they had.
Juniper Networks being acquired by HPE in private wireless space
They held this event in Dallas because one of their customers is the University of Texas at Dallas. They had an impressive demonstration of their new technology.
The confusion in the entire sector was obvious to me. I had asked upper management if they were a private wireless company, because it sounded like it was.
I don’t think they understood the question. Could they have not known about private wireless?
And that’s part of the problem today in this new sector. Different companies use different terms which all mean the same thing.
Competitors are not equal.
Private wireless needs to have definitions all competitors use
As an industry, the private wireless sector needs to correct this area of confusion.
The next step with Juniper Networks was within months it was clear they were not large enough to weather the storm alone in this new sector. So, they struck a deal with HPE who is acquiring them.
This is good for both. It gives Juniper Networks the financial backing and deeper staff to make it through this start-up period in the private wireless sector, and gives HPE an in, to this new market segment.
If successful, this could be just what the company needs.
Expect much M&A in private 5G wireless space going forward
Many companies in this space, small and large have similar problems. That’s why I believe there will be many more M&A opportunities we will see going forward.
Another group of companies in the private wireless space are the public wireless carriers like AT&T, T-Mobile and Verizon. While some are more aggressive than others, I believe this area is a potential growth area for these public wireless giants.
Carving out a part of a public wireless network and making it private seems like a great balance for the enterprise customer.
Private wireless from AT&T, T-Mobile, Verizon and others
While this may or may not have the same flexibility to the enterprise, and while many customers are concerned with their level of control, access and security, this is still worth consideration.
So, there is a wide range and availability of choices for the enterprise. The cost and manpower needed to set up and operate the variety of networks is vastly different.
A hybrid private wireless model operated by one of the larger public wireless competitors can be quite different from a more expensive and complex build your own model.
One model requires a higher cost and staff. The other is operated by a public carrier.
Ericsson, Nokia, Samsung, Celona, NTT, Qualcomm, Cradlepoint and more
Some of the private wireless competitors, whether operating on their own or in a partnership or as part of an M&A arrangement, include but are not limited to HPE, Qualcomm, Ericsson, Nokia, Huawei, Samsung, Celona, Kyndryl, NTT, Microsoft, Airspan, Cisco, Metaswitch, Federated Wireless, Kajeet, Cradlepoint and a growing number of competitors.
As private wireless continues to expand, expect more competitors to step into this space. On one hand this is good. This provides more choice at different levels for the enterprise customer to choose from.
On the other hand, I fear this will also cause the confusing sector to become even more confusing.
You see, the private wireless sector uses some of the same language and other more specific terms which mean the same thing as other terms.
Private 5G Wireless vocabulary needs to be same between competitors
The vocabulary for private 5G needs to be homogenized to make it easier for customers and investors to understand the similarities and differences of different competitors and models.
Going forward I will both follow and write about this space and how it is growing and changing over time.
Private wireless is no longer brand new. That being said, it seems like a cottage industry which needs to have a similar vocabulary.
Another question. Is private wireless a real, long-term growth opportunity, or is it a short-term filler before the traditional wireless industry stumbles across the next, big idea?
Who knows for sure, but today it looks like and acts like a real growth segment with partnerships and M&A opportunities. So, l am treating it like it is on a real, long-term growth path.
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