- Many enterprises hesitate to deploy private networks because of high costs compared to Wi-Fi alternatives
- Access to spectrum and compatible devices remains inconsistent across regions and industries
- Skills gaps and fast-evolving standards create operational and lifecycle challenges for IT teams
What’s holding your company back from deploying a private cellular network?
Enterprises are increasingly turning to private networks to improve security, performance and control over their connectivity. But despite the promise, many organizations hold back from deploying private 4G and 5G systems. A mix of financial, technical, and operational hurdles hinders adoption, from steep upfront costs and spectrum challenges to device limitations, skills gaps, and concerns about rapid changes in technology standards.
Let's run down the reasons:
Cost
The cost of deploying a private network is generally the biggest barrier to implementing the technology. “Historically, cost versus alternatives (Wi-Fi) would be one of the top reasons,” said AvidThink principal Roy Chua in an email to Fierce.
"Based on our discussions with suppliers and end user organizations – including those that are yet to adopt private 5G networks – the justification for initial investment is the top barrier, especially in environments with limited mobility requirements where Wi-Fi coverage performs well and the limitations of wired systems have not surfaced as major concerns, for example, in a factory where the hassle and cost of rewiring a reconfigured production line have never been much of an issue,” said Asad Khan, 5G research director for SNS Telecom & IT.
Spectrum access
Private networks require sufficient bandwidth available in a particular region. That’s why schemes like CBRS (3.5 GHz) in the United States have encouraged the further deployment of private networks.
“The ease of access to suitable spectrum with sufficient bandwidth (depending on application requirements) comes next,” Khan said. “Generally, we're seeing greater levels of adoption in countries where local area licensing frameworks have been implemented." As well as the U.S., there are local licensing frameworks across Australia, parts of Asia, and much of Europe.
“There are exceptions, such as China and the United Arab Emirates, where mobile operators are actively driving deployments,” The SNS analyst said.
The skills gap
Your IT staff may struggle to manage unfamiliar cellular infrastructure. “Private 4G/5G is unfamiliar to many enterprise network experts,” said Chua.
“Some of the larger end-user organizations – such as Airbus, John Deere, and Tesla – have made significant investments in time and resources to hire proficient engineers and develop the necessary technical skills to manage their multi-site deployments across different national markets,” Khan said. He added that managed services and NaaS (Network-as-a-Service) offerings can reduce the operational burden for smaller enterprises.
Devices
Being able to get devices that can work, particularly with private 5G networks, can be trickier than you’d expect.
“Two persistent issues that have plagued the market in the early 2020s have been the limited variety of specialist (non-smartphone) 5G devices and high 5G IoT module costs due to low shipment volumes,” said Khan. “Industrial-grade 5G device availability has improved considerably over the past 12 months, although it will take time for module pricing to decline as RedCap (Reduced Capability) technology sees broader adoption.”
AvidThink’s Chua said that compatibility with the devices that need to be connected — scanners, AGVs, industrial systems and rugged tablets - can be a big problem. “Not all of them will handle CBRS well and while you can always use a wireless router as a bridging gateway between an existing device and the private wireless network, that's not a cheap device,” the analyst explained.
Excessive standardization
A concern voiced by some device suppliers is excessive standardization, which does not align with end users' long-term lifecycle requirements, SNS’s Khan noted. “For instance, Itron has pointed out that the 3GPP's 5G eRedCap (Enhanced RedCap) and 6G LPWA (Low Power Wide Area) projects are only a few years apart – compared to the 20-year operational lifespan of battery-powered devices that its utility sector customers plan to roll out as part of their wide area private network deployments."
Utility sector customers want to get the maximum lifespan out of their long-lifed battery-operated devices. Without having to spend to replace them a few years down the line because the standards have changed.