Understanding the Benefits of Private 5G

Private 5G allows the deployment of private wireless networks at facilities where coverage, speed, and security capabilities are needed beyond those offered by Wi-Fi and other network technologies, for example, for industrial applications, where reliable connectivity needs to be provided between factory floors and monitoring stations outside. In this kind of scenario, private 5G can deliver a wireless solution that’s more reliable and less expensive than traditional wired solutions such as cable. With 5G being built for the internet-of-things (IoT), it will offer a connection that can’t be beat thanks to strong, stable wireless links at all times and the ability to manage huge amounts of data. Private 5G is ideal.

With private 5G, an organization can have its own private data network, providing more secure connection than public Wi-Fi. And because it offers lower latency, it's better for industrial applications like autonomous guided vehicles or automation systems in manufacturing plants. But it is important to note that Wi-Fi is easy and less expensive to deploy and manage; most  verticals will deploy Wi-Fi first and use private 5G spectrum for specific use-cases that require a low latency or a high level of QoS.

Private 5G networks provide the same benefits to enterprises as public 5G, including lower latency and higher throughput, but with a critical difference. Unlike public 5G networks, private 5G service provided by an enterprise will have its own dedicated capacity that doesn’t reach saturation point when faced with high demand.

Private 5G service delivers improved coverage and faster speeds. This is especially beneficial for industries that are entirely dependent on wireless networks, such as banks providing mobile banking apps and in healthcare with remote patient monitoring.

The only difference between private 5G and public 5G is that private 5G enables businesses to leverage their network to offer services such as IoT solutions, in-building connectivity, and augmented reality solutions. Private access is not accessible for consumers, but the two networks provide similar services.

Private 5G offers operators a level of control over the network that public 5G does not. This means that you can give priority to real-time business-critical apps on your private 5G network, while other users experience lower latency due to offloading or deprioritization. In contrast, public 5G networks are shared resources whose carriers cannot guarantee performance and quality of service for any specific application; users primarily surf the web, send emails, and participate in casual video chatting via instant messaging platforms such as WhatsApp and Skype.

For enterprises and industries that require greater control over their network, private 5G offers that. The ability to isolate certain types of traffic means that private 5G operators can offer prioritized access to certain critical applications. This is useful in scenarios where the user’s experience must be guaranteed at all times, for example, a customer-facing retail environment where the retailer wants to provide a consistent experience for customers no matter what time of day it is or what conditions the weather may be at that time.

The private network approach is anchored in the concept of a virtualized service based on a private infrastructure and managed by the operator. The virtualized service affords all the flexibility of software-defined networking with dedicated management, security, and control capabilities. The public cloud can be utilized as a communication interface between users’ devices, internal enterprise networks and other users within a virtualized space.

5G is moving from specialized hardware to commodity servers. Network function virtualization (NFV) allows for the implementation with software running on commodity hardware, an example, RAN functions that are not implemented with a special and expensive hardware device at the base station but with a standard server and software running on it. This can be done anywhere, from edge computing to cloud computing or in combination. Also it makes it possible to function over multiple geographical areas via content delivery networks.

NFV is a means to deploy new services using software-based network functionality that operates in the same way as standardized hardware, such as access points and routers. In particular, a single software-based network function may be instantiated multiple times or even concurrently on different physical devices within the same cloud hosting environment. NFV is the encapsulation of all the logic and protocols that are necessary to provide a specific global IP service into the URL called Service Function Path.

Cloud-based services and operational models have greatly simplified how services are deployed in the network. With virtualization, network functions can be deployed to a public or private cloud infrastructure to provide scalable functions that require flexible deployment and dynamic reconfiguration. Although virtualization makes it possible to deploy network function services quickly and easily, the complexity can turn NFV into a formidable stumbling block.

The 5G capabilities allow distinct network slices that comprise different control and user plane functions, giving the operator as many partitions of a public network as its wants. Traffic can be routed to a private network or a software-defined virtual private network on shared infrastructure. Because the access point is centralized, it can give users seamless service with minimum latency across multiple regions and locations. A hybrid private 5G network is a mix of a shared and private segment in one public 5G network, which allows operators to dynamically manage slices of infrastructure for different use cases. These slices can be based on geographic location, deployment type, and more.

Businesses are set to transform with 5G. With dedicated wireless networks and capabilities that were designed specifically for the IoT, businesses can build the infrastructure to power their digital transformation. They can manage their networks when and where they need them on a dedicated private 5G. Thanks to the flexible deployment options and advanced wireless technology, they can adapt capacity to match any use-case, from small remote assets in mass transit sites to developing smart cities.

The private 5G network market is expected to expand at a CAGR of 47.5% from 2022 to 2030. This growth can be attributed to the significantly increasing demand for ultra-reliable, low-latency connectivity with an extremely secure network across several mission-critical applications. Private 5G networks are the next evolution for connecting industries. Through predictable performance, increased scalability, and bandwidth on demand, these networks will improve an organization’s efficiency. Private 5G creates a new opportunity for service providers to increase their total addressable market. However, the complexity of creating business models can be a challenge. ACG BAE helps you understand how private 5G works and why it justifies the investment by examining the technical requirements and benefits in detail, providing an understanding of how private 5G can create new business use cases around IoT and smart cities.

Contact Ray Mota at rmota@acgcc.com or Peter Fetterolf at pfetterolf@acgcc.com for more information about the BAE.



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