5G Making Inroads in Private Networks

Private and public wireless networks provide wireless broadband connectivity. While private wireless networks are owned and operated by an organization for its private use, public wireless networks are owned and operated by telecom service providers to offer wireless services to the public at large.

Private Network Technology Choices

Technology choices for building private wireless networks include broadband technologies like Wi-Fi, proprietary network technologies like LoRa and Sigfox, or cellular technologies like Private LTE and 5G. Factors to choose the right technology include spectrum availability; service throughput, latency, security, mobility and quality-of-service requirements; device and solution total cost of ownership; and the manpower competency required to manage the private cellular network. The table below gives a brief summary:

Both Wi-Fi and cellular technologies (3G, 4G, and 5G) have evolved over the last two decades. The table below gives a bird's-eye view of the evolution of Wi-Fi standards and the incorporation of new radio features like improved modulation, advanced signal processing, and multiple-antenna usage that ensured Wi-Fi technologies remain on par with evolving cellular technologies.

Private Network Use Cases

A number of industry verticals make excellent candidates for private wireless networks, including energy and utilities, airports, ports and train stations, warehouses and other retail premises, healthcare, smart factories, and education institutes.

• Smart Factories: A smart factory uses digitization and advanced technologies to improve efficiency and productivity, with all equipment interconnected to share data in real time. Smart factories require networks with low latency, high throughput, and security to enable advanced robotics like automated guided vehicles (AGVs) and Industrial IoT machines. Germany has seen private LTE/5G networks with local spectrum deployed in automotive manufacturing, expected to be replicated across other geographies and verticals.
• Mines: Mines typically have a tough work environment — remote, hazardous, inaccessible, rough terrain — requiring mission-critical characteristics. Private LTE and 5G networks provide reliable connectivity for drilling machines, rugged handhelds, and other equipment, even underground or in remote locations.
• Warehouses: Warehousing and logistics have gone through a cycle of automation led by the rise of e-commerce, with robotic product picking, tracking, and other Industrial IoT applications. Private networks help operators deploy these without worrying about dead spots or high network maintenance costs.
• Smart Campuses: Smart campuses link devices, applications and people to enable new experiences and operational efficiency. Private LTE or 5G networks enable services like smart ID cards, smart payments, parking/bike-share discovery, real-time bus information, smart locks or access control, and ubiquitous indoor/outdoor wireless coverage.
• Airports: Some airports resemble cities — hundreds of tenant companies, thousands of employees, tens of thousands of passengers, and a wide range of equipment. Private LTE/5G networks enable critical communication for airport operations, baggage tracking and cargo management, passenger services, security control, and aircraft/airline equipment connectivity.

As per a recent GSA (Global mobile Suppliers Association) report on private mobile network deployments:

• Number of customers deploying private mobile networks reached ~1,100 globally
• Number of countries with private mobile networks reached 74
• Manufacturing, education and mining are the largest sectors for private mobile network deployment

There are ~1 million factories, ~3,000 mines and ~1,000 ports in the world — just to give a hint of the size of the opportunity for private networks and the potential impact they can bring.

Choices of Spectrum for Private Networks

Spectrum is a key factor influencing the uptake of wireless solutions; reliable wireless connectivity typically demands licensed, dedicated spectrum. Spectrum is owned by government and licensed to enterprises for use within a geographical area, usually for 10–20 years. Around the world, regulators are exploring various strategies for spectrum management that make room for private network allocations:

• Local/Regional licensed spectrum — enterprises requiring spectrum for their premises are provided local or regional licenses allowing them (or subnational operators) to operate their own private/local 5G network using localised spectrum for their premises.
• Spectrum leasing — allows businesses wanting to operate their own 5G infrastructure to lease spectrum on a localised basis from public network operators holding national 5G spectrum licences.
• Shared spectrum — allows businesses to apply for licences in a shared spectrum band, coordinated with other users in the same band.
• MNO Network Slicing — allows TSPs to offer dedicated solutions to enterprises using their own spectrum and ecosystem of solutions.

As per a recent GSA report, the top countries for private networks are the United States, Germany, China, the UK, Japan, Finland and France — dedicated spectrum is allocated in most of these markets.

• Germany has set aside 100 MHz of spectrum in the 3.7–3.8 GHz band for local licenses, primarily used for automotive manufacturing.
• The UK has allowed localized and shared spectrum licenses in the 3.8–4.2 GHz band, with over 1,000 licenses issued so far.
• France opened frequencies in the 3.8–4.0 GHz, 2.6 GHz and 26 GHz bands, though progress has been slow (fewer than 20 licenses awarded).
• Sweden auctioned spectrum in the 3.7–3.8 GHz band for local and regional licenses.
• Finland has set aside spectrum in the 2.3–2.4 GHz band for private networks on a first-come, first-served basis.

CBRS Suitability for Private Networks

CBRS (Citizens Broadband Radio Service) is 150 MHz of spectrum in the 3.5–3.7 GHz band in the United States, made available by the FCC for private wireless networks. The three tiers of users for this spectrum are:

• Incumbent — such as the United States Navy and fixed satellite
• Priority Access License (PAL) — enterprises that pay to license the spectrum
• General Authorized Access (GAA) — enterprises that utilize the spectrum unlicensed

The CBRS auction took place in July 2020 for seven PALs per county, totalling 22,631 PALs nationwide, resulting in large communication giants such as Dish Network, Verizon, and Charter Communications winning regional slots, alongside small cable operators and technology companies getting county-specific licenses.

Companies can still use General Authorized Access (GAA) CBRS spectrum without obtaining a license, sharing this spectrum with PAL license owners and other GAA users — enabling both PAL owners and GAA users to build and operate private networks in the United States using CBRS. With all these developments, it is clear that private 5G network deployments are set to explode in coming years, with a new set of ecosystem players offering solutions and services for this segment emerging at a rapid pace.