What is the current state of private wireless, and where is it heading?
Private wireless has been with us for several years and has gone through several periods of growth and change. Today, it appears Private 5G networks are showing growth. One question is: Will that good news continue? Another question is about the economics of this new industry sector. Will it be led by larger, brand name competitors, or smaller ones with big ideas, or perhaps a little of both?
Larger competitors have a strong brand name, but may not be leaders in new, advanced private wireelss technology.
Smaller or newer competitors often have great new tech, but not the market power, financials or brand name needed for marketplace trust and growth.
So, which will win, large or small? Let’s take a closer look at the current state of Private 5G Wireless Networks. What is working today, what is struggling and what we can expect moving forward.
What I have learned about private wireless in last few years
Several years ago I started getting calls from smaller and lesser-known companies in the private wireless space. While these companies had breakthrough and exciting new ideas, they didn’t have history, strong financials or a strong brand name.
Since then, I have been hearing from many others in the space, both large and small, lesser-known and brand name companies, all playing in a different sector of this space.
What I learned was the industry had a difficult time with self-recognition. Who they are in the telecom industry. How they compare to each other and other alternatives in the space.
Some knew they were in the private wireless space. Others called it something different, but based on countless meetings and lunches mixing with industry executives I both learned so much, and became more confused, all the same time.
That’s a problem that needs a solution as quickly as possible.
Some of these companies became clients of mine and I have been advising them on the state of the industry, growth opportunities, strengths and weaknesses and which path to take to become a winner is this new and changing space.
Private wireless with AT&T, T-Mobile, Verizon, KORE Wireless
You see, not every new competitor, large or small will be successful in this new space.
One area that needs serious and immediate attention is self-recognition. You see, there are several different versions of the private wireless space. Often, competitors do not do a good job of knowing where they fit into this space.
One version is offered by wireless networks like AT&T Mobility, T-Mobile and Verizon
Wireless. This is a simpler version.
They use their nationwide wireless networks and reach. They created a new level of services and give more control to their customers, who are large enterprise level companies, colleges, cities and more.
These wireless carriers own and operate the network. This is easier for the customer. However, it may not give the same level of control or security to the customer.
At the other end of the spectrum, is a complete private wireless network. The enterprise customer contracts with a company to build and maintain a wireless network available only to the company.
That means enterprise level companies control their own strengths and weaknesses. They provide any level of security and availability they want.
Sometimes they have their own team manage everything. Other times they use the team from the service provider.
Private 5G offering from resellers like Xfinity Mobile, Spectrum Mobile, Optimum
Plus, there is a growing middle ground. Even resellers like Xfinity Mobile, Spectrum Mobile, Altice with their Optimum service and others could enter this space as well to one extent or another.
Plus, there are business service oriented companies like KORE Wireless may also see a growth opportunity here.
Private wireless is still a new segment. It is increasingly desireable by enterprise customers whether that be in a building, an expansive campus, a city, a stadium and more.
That being said, who does the customer choose to do business with? One of the larger and better known competitors, or one of the smaller and newer companies without brand name recognition?
Juniper Networks, HPE, Celona, Cradlepoint, Kyndryl, Nokia, ZTE
As I have learned, there is a growing number of competitors, large and small in this competitive space.
We are now entering a new stage where partnerships and M&A are being created. There is also push-back against some of these from competitors and regulators.
Think about how regulators are pushing back against the HPE and Juniper Networks merger.
That creates a difficult arena to compete in.
Another competitor is Celona. This is a smaller, but growing company. They have acquired other companies in their growth curve. Will this be the model for success moving forward? Will they be a leader?
Ericsson Cradlepoint is another competitor in the private wireless space. While Ericsson is a strong brand name, are they growing as rapidly as expected a couple years ago? There seems to be some movement. We’ll have to keep our eyes on them and see.
There are also many others including Kyndryl, Nokia, ZTE and so many more in this fast-growing and always changing space.
Some are doing stronger business than others. The question is which will be leaders and which will be followers?
Advice to competitors in private 5G wireless space
Let me offer a suggestion to all private wireless competitors in this new space.
Today, there is no real leader yet in this new space. There are plenty of companies, large and small, brand names and unknowns, all trying to win.
Ultimately, there will be a leader at some point. Who will the leaders be?
Will they be the big wireless carriers, or the equipment makers, or some of the smaller competitors?
Will they be some of the bigger, brand name competitors or some of the smaller unknowns? Or perhaps they will be one of the merged entities?
It all depends on how this new sector grows and changes moving forward.
Need to clarify private wireless for enterprise customers, investors
First, the industry needs to clarify. Cut through the confusion.
They need to understand there are different flavors. So, the industry needs to develop a top-level, overarching name. Private 5G or Private 5G Wireless or even Private Wireless seems to work here.
Next, there needs to be different names for different slices of the pie. Consider the all-in-one offered by wireless carriers. Then another category for companies who build a private 5G network for customers.
There are different levels. Some are completely separate and autonomous. Others offer assistance or a combination in different levels.
That’s what we should focus on today. We need to clarify the different segments of the Private 5G Wireless network space.
Then each company can choose the segment or segments they compete in.
Private wireless will be with us going forward, but needs to be clear
Private 5G looks like it will be with us going forward. There will be different levels of service offered by different levels of competitors.
That’s why regulators need to better understand this new segment and should help it grow and not block M&A unless there is a valid reason.
Regulators need to look forward, not backward. M&A will most likely be a needed piece of this puzzle looking forward for private wireless.
This segment is still new. That means there will be some companies who succeed moving forward and others who struggle and are eventually acquired, or even fail.
Let’s not make it tougher. Let’s make it easier and help this industry sector succeed, whatever it will look like moving forward.
Expect there to be many competitors from larger and well known brand-name competitors and plenty of other, smaller, less financially strong companies.
So far, so good, but the private 5G wireless ride is still just in the very early stages and there are still plenty of bumps in the road which need to be paved.
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