See discussions, stats, and author profiles for this publication at: https://www.researchgate.net/publication/340337139
Private 5G networks. Local cellular networks for enterprises
Article · February 2020
CITATIONS
READS
0
249
1 author:
Marcin Dryjanski
Rimedo Labs
25 PUBLICATIONS 1,219 CITATIONS
SEE PROFILE
Some of the authors of this publication are also working on these related projects:
Souly - A smart bulding solution View project
FP7 5GNOW View project
All content following this page was uploaded by Marcin Dryjanski on 14 April 2020.
The user has requested enhancement of the downloaded file.
Private 5G Networks - Local Mobile
Networks for Enterprises
Marcin Dryjański, Ph.D.
Published on March 12, 2020
Abstract
To take advantage of the potential promised by the 5G system, while minimizing investments,
implementation time and new infrastructure maintenance, a new trend, the so-called mobile
private networks may become an important item in the telecommunications landscape. This
approach relies on the implementation of 5G (or LTE) systems dedicated to specific enterprises
and purposes in which the infrastructure is under the responsibility of the enterprise itself or of
the venue owner, and the frequency band is licensed locally for this particular use case.
Introduction
Recently, traditional business models have proved to be insufficient in the context of the
emergence of next-generation mobile systems. 5G targets various new market segments and
futuristic applications (a.k.a. verticals), e.g.: Smart Factory, Mission-Critical Applications,
Autonomous Driving, Remote Surgery, Smart Farming, etc. Whether this comes into reality, time
will tell (and I personally don’t believe in some of them), but there are of course use cases that
require certain features that are brought to life with the advent of 5G. However, the evolution of
mobile networks goes into “localization” of uses. This requires local infrastructure to be provided
where such services are or will be provided. In addition, typical Wireless Local Area Networks
(WLAN) used in enterprises are usually based on a Wi-Fi system that does not meet the
requirements in all cases, especially when it comes to high reliability or communication security.
Private mobile networks
For the reasons mentioned above, a trend has been observed for some time in which the so-called
private (or non-public) mobile networks[1] appear. This concept is based on the use of new
mobile radio systems (like LTE or 5G) for dedicated local applications, e.g. in a specific
company, factory, mine, seaport or airport. There are already implementations of this type based
on the LTE system[2], as well as some initial deployments of 5G[3]. Speaking of private
networks, it should be noted that it is a change in the approach to providing mobile services.
Those networks are intended for business markets (i.e., the recipient and customer is an enterprise
or institution), they are associated with a specific location, requirements, and applications. An
important aspect is "privacy", i.e. communication closes within the enterprise and does not rely
on the operator's public mobile network. The implementation of those networks by traditional
telecom operators could be a long-term process, as it always requires the implementation of
dedicated infrastructure and lacks economies of scale. This opens the door to solutions in which
an operator with a spectrum license for global (national) use leases the band to the enterprise, and
the enterprise (or a third party – a systems integrator) implements the infrastructure and uses the
resulting private network to provide service, so the telecommunications operator is not involved
in each individual case. Of course, nothing precludes the implementations in which traditional
operators implement private networks and in Germany, DT is expected to manage a large portion
of those networks [10]. Also, there are private mobile networks using unlicensed spectrum which
do not require the “sublicensing” by the spectrum owner.
Spectrum access
Analyzing the above scenario, one can notice its similarity to the current market of cable
operators and integrators providing Wi-Fi networks for enterprises. It should be mentioned here
that the described approach will not replace corporate Wi-Fi networks that meet the requirements
in many cases and applications, are much cheaper and have high market penetration. There is
room for a new type of company - mobile network integrators - who need to know the specifics
and have extensive knowledge of 5G (or LTE) systems. To enable the implementation of local,
private 5G (or LTE) networks, new band licensing models are also required. These are licensing
schemes for shared spectrum bands, or dynamic spectrum access models. One such mechanism is
CBRS (Citizens Broadband Radio Service), operating in the 3.5GHz band[4], which has recently
been commercially introduced in the US, and which (simplifying) involves making the band
locally available for use by players other than spectrum owners or incumbents. In the UK, Ofcom
also introduces the possibility of local licensing of the band in the frequency range 3.8-4.2
GHz[5], while in Germany a similar model appeared for the 3.7-3.8 GHz band[6].
Applications for private 5G networks
Applications for private networks based on the 5G system are in the area of high-performance
requirements, i.e. in the so-called "Industrial IoT", e.g. in production plants, logistics centers,
mines or seaports. Another place for this type of solution is mission-critical systems, public
safety or railway systems, where transmission reliability and safety are of high importance. Yet
another area is the implementation of the 5G (or LTE) network in “public local hotspots”, such as
airports, university campuses, hospitals or military bases, where the local mobile network
"sponsored" by the facility owners can be realized faster than the implementation of the public
network by national operators. What is worth mentioning here is the concept called "Neutral-Host
Networks" (NHN)[7]. One option of this solution is that the infrastructure and / or license to use
the frequency band belongs to (and is managed by), e.g. the facility owner, while telecom
operators provide services to their clients using "not their" infrastructure and resources. Thus, it is
a special kind of network sharing, where the infrastructure provides an open-access basis to all
operators to improve coverage and capacity indoors and hotspots. The business model of such
implementations comes down to the question of who owns the infrastructure and spectrum
resources: the operator, the enterprise owner, the facility/building owner, or an external supplier.
Challenges
Assuming that private 5G (or LTE) networks will be similar to traditional wireless local area
networks (WLAN), they should be dedicated to the owner, externally managed and easy to
implement. However, compared to currently used WLANs (mostly Wi-Fi networks), 5G systems
are more complex. The set of functionalities within 5G systems includes, among others: support
for millimeter waves, advanced multi-antenna techniques (Massive MIMO), network
virtualization (NFV, Network Function Virtualization), programmable networks (SDN, Software
Defined Networking) or a new approach to the core network (SBA, Service-Based Architecture).
Therefore, there is a niche for next-generation integrators specializing in the implementation of
private 5G networks that would develop their competences in these areas. The second challenge
is the early stage of aforementioned mechanisms and regulations allowing for dynamic access to
frequency bands or licensing taking into account the local nature of such access, as well as more
affordable prices for licenses. The third challenge is the closed telecommunications infrastructure
market, and thus its availability (e.g. price) for small-scale implementations. This is where the
new generation Open RAN model comes in handy, strongly supported by operators and new,
smaller infrastructure providers, as part of the O-RAN Alliance[8] (or TIP – Telecom Infra
Project[9]), which, however, is also at an early stage of commercialization. This concept is based
on separating the software from the equipment, i.e. virtualization of the radio network
functionality and the ability to run the system on CoTS (Commercial-of-the-Shelf) equipment
and open interfaces (instead of closed, specialized hardware modules). This will open the market
to smaller suppliers, granulate this market, and thus increase competition and lower prices.
Summary
The private mobile network (also called local or non-public) is dedicated to a specific enterprise
or application and uses the advantages of the 5G (or LTE) system, such as high security, privacy,
high reliability, performance or throughput where required being independent on the public
mobile networks provided by national operators. Massive implementations of this type may cause
transformation of the entire industry, leading to the granulation of the telecommunications
market, in which units such as traditional and local telecommunications operators, nextgeneration integration companies, traditional suppliers and new type of infrastructure producers,
as well as broker companies proposing local access to the spectrum (a.k.a. spectrum brokers). At
the same time, this concept is not as such bounded only to 5G systems. Private networks are, can
and will also use Wi-Fi or LTE (using licensed, shared and unlicensed bands) systems. What is
important though is that every private network should be considered individually, where the
proposal for the implemented system is tailored to the specific case, application, requirements,
price, parameters, ease of implementation and operation. If we take such an approach, the answer
may sometimes be a 5G system, but also LTE, Wi-Fi, as well as, NB-IoT, Sigfox, or Lo-Ra. The
key thing is not to see or treat 5G as “The Solution” for every situation.
Acknowledgments:
This article is an English version of my article from mensis.pl (Provided here thanks to
permission from Tomasz Radzewicz, Editor-in-Chief). Please find the original article in
https://mensis.pl/sklep/magazyn-mensis-pl-nr-62-2019-wersja-elektroniczna/
References
[1] https://www.ericsson.com/en/reports-and-papers/white-papers/private-5g-networks,
https://www.computerweekly.com/feature/Private-5G-networks-Are-they-the-right-choice-foryou, https://www2.deloitte.com/us/en/insights/industry/technology/technology-media-andtelecom-predictions/2020/private-5g-networks.html
[2] https://enterpriseiotinsights.com/20191017/channels/fundamentals/three-private-ltedeployments-in-the-mining-industry
[3] https://telecoms.com/502761/vodafone-germany-and-lufthansa-go-private-for-5g/
[4] https://www.cbrsalliance.org/news/fcc-authorizes-full-commercial-deployment-of-ongoservice-in-3-5-ghz-cbrs-band-unleashing-billions-in-value-with-new-wireless-services/
[5] https://www.ofcom.org.uk/consultations-and-statements/category-1/enabling-opportunitiesfor-innovation
[6] https://www.rcrwireless.com/20191121/5g/germany-opens-process-for-private-5g-licenses
[7] https://blog.ecitele.com/neutral-host-networks
[8] https://www.o-ran.org/
[9] https://telecominfraproject.com/
[10] https://enterpriseiotinsights.com/20200312/channels/news/deutsche-telekom-expects-tomanage-most-private-5gnetworks?utm_campaign=20200312%20RCRenewsThurs&utm_medium=email&utm_source=El
oqua
View publication stats