Private 5G is soon coming to a business near you
More connectivity and communication applications are paving the way for private 5G, a cloud-based wireless technology designed for the enterprise and highly adaptable to change. Many organizations are already implementing or considering implementing private 5G as the enterprise can take control of the network and data. It can also be confined to a specific location, providing indoor or outdoor coverage in places such as manufacturing facilities and ports.
In addition, private 5G allows organizations to control and customize their security settings, policies and other aspects of wireless communication.
A new study recently published by Economist Impact in partnership with NTT surveyed organizations around the world and found that more than half of them plan to roll out a 5G private network. within the next six to 24 months. The study included 216 grade C and senior IT decision makers from organizations with revenues of $ 250 thousand. to more than $ 1 billion. The respondents came from a variety of industries in Germany, Japan, the UK, and the US, and included automotive and manufacturing, energy, healthcare, pharmaceuticals, retail, and logistics.
According to the study, organizations are largely embracing next-gen connectivity and communication technology, including private 5G. 94% of respondents implement an update that includes 6, 4G, or 5G Wi-Fi. Nearly a quarter (24%) pilot private 5G networks, and 6% have at least one active private 5G network. Among those with one active 5G private network, the largest U.S. group (9.3%) is followed by Germany (7%), while Germany leads (33%) ) when it comes to piloting 5G private networks.
Energy and transportation will lead the way for the introduction of private 5G
The private interest of 5G is particularly high in industrial settings to support smart manufacturing deployment issues such as robots and self-driving devices. Energy (39%) and transport (33%) are the two most likely businesses to pilot 5G networks. Transport companies (41%) are more likely to have already built a 5G private network. Within the automotive and manufacturing industries, 25% of companies reported having a 5G private pilot and 5 &. In healthcare and pharmaceuticals, 18% of companies are piloting a 5G private network and 5% have an operating network.
These businesses make sense because network reliability is critical to business activity. Even the smallest obstacle in the wireless network can cost millions of dollars, which is why the direct features listed above have historically stayed away from Wi-Fi, who may be tired at times. I'm sure everyone reading this has experienced a Wi-Fi network that seems to be working fine and then suddenly stopped working and then started again so soon. This is fine in an office with a rug but not on a manufacturing floor.
Security is a key driver
Unsurprisingly, security is a key driver for the adoption of private 5G. 69% of respondents said that their current connection and communication platforms did not address network security, making it a major concern for organizations across countries and businesses. For 75% of healthcare and pharmaceutical organizations, security is the biggest pain point, given the sensitivity of the data. Other key pain points identified by respondents were data control (48%), coverage and distance (43%), and response time of their current service provider (40%).
Security is the reason most organizations are exploring solutions outside of Wi-Fi. 87% of respondents believe that Wi-Fi networks do not provide a sufficient level of security for the enterprise. In fact, the majority (86%) of respondents believe that private 5G is a Wi-Fi hotspot. That’s because 5G private networks offer a number of benefits to compliant-driven organizations for customizing security and data protection. Other benefits from implementing private 5G cited by respondents are better data privacy (83%), faster connection speeds with lower latency (81%), and greater network reliability for connections and communication (80%).
While 5G private adoption seems to be accelerating, it is still at an early stage for most organizations. The implementation of private 5G is either in the short to medium term plans for organizations that have not yet piloted or implemented such networks. Globally, only 3% of companies plan to roll out private 5G within six months, and 15% expect to roll out within 12 months, and 19% within 18 months.
The construction of 5G private infrastructure is accompanied by some technical challenges shared by organizations in the study. For 44% of respondents, integrating 5G with legacy systems and networks is a major hurdle. The other barriers to adopting 5G are the complexity of the infrastructure required to deploy 5G (37%) and staff lacking the technical skills to manage 5G networks (30%). private.
Managed services as an operational option for their use
For this reason, many organizations prefer to outsource their private 5G usage. 38% of organizations choose to outsource to a managed service provider with service level agreements; At the same time, a third of organizations preferred a hybrid or shared private network approach, where they would have rented the network from a mobile operator. When it comes to communicating with 5G private providers, organizations are more likely to request system integration services (63%), network management after deployment (62%), and network design and planning (54%).
The findings of the study show that the adoption of 5G private networks is strongly supported by senior leaders across the globe. Looking ahead, 94% of respondents agree that 5G is going to be an important part of their work. Over 90% believe that private 5G will become the standard in their industry within the next five years - a vision shared across all sectors. It will also be instrumental in enabling digital transformation in the enterprise.
Understanding the position of 5G versus Wi-Fi is important. Some industry watchers have predicted that 5G would eat away at Wi - Fi, but that's certainly not true. I believe both are very supportive with Wi-Fi continuing to be the standard wireless option for general use and 5G issues where that is sure, a reliable connection is required. Proof of this comes from this Deloitte study which found that 98% of businesses will use both technologies within three years.