Risks for MNOs in 5G private networks

What are the risks in shifting MNO resources toward private 5G network implementations? What do MNOs need to watch out for?

Increased install and operational complexity

While past advancements from 2G to 3G to 4G all focused on building new or modifying existing cell sites, private networks rely on a different deployment model entirely. 

Instead of focusing on optimizing service for a wide variety of customer types (for example, consumer, enterprise, IoT, and so on) simultaneously and determining site locations and network design accordingly, a private network requires a much more targeted approach. As such, elements from base station and antenna location to wireless network management at the enterprise level and connecting a wide range of devices with diverse capabilities must all be considered. 

That’s why these implementations often require strategic partnerships between the carrier, original equipment manufacturers (OEMs), company IT team, company core network. edge resources, and more.

New competition

Multiple industry dynamics have lowered the barrier to entry for new competitors in the private network space. Many countries and regulators around the world are making spectrum available for private use at competitive prices—Citizens Broadband Radio Service (CBRS) spectrum is such an example in the USA. Additionally, wireless technology has evolved toward software-centric networks running on commercial off-the-shelf hardware. MNOs no longer compete just against other MNOs for market share in the enterprise connectivity space.

In this new environment (and while use cases are fully developed and validated) MNOs will need to be flexible in their approach, including pursuing partnership opportunities. In those partnerships, sometimes the MNO will take the lead, while in other cases, they will contribute assets and expertise to a partner with relevant domain expertise. Competitors with significant funding and a different way of thinking about implementation that is not tied to existing carrier service models will require MNOs to be both thoughtful in their strategic approach and swift in adoption to avoid being left on the sidelines for not realizing the full potential of private 5G network business.

The MNO competitive edge

MNOs can’t be all things to all people in the private 5G network space. Focusing on all aspects of implementation will spread critical resources too thin and often deliver a substandard product.

MNOs must leverage their access to spectrum. Although enterprises might be able to acquire their own spectrum, whether shared or dedicated, either directly or through private network integrators, the wireless operators retain control over the majority of spectrum available for wireless use.

MNOs may see an opportunity in the technology management and operational elements, delivering via a SaaS model. Very few companies interested in private 5G networks have the in-house skillset to operate these complex systems effectively. Their IT staff does not have the training or know-how required to run a mobile network in an optimized fashion, consistently delivering the expected performance to each of the multiple use cases these systems will support. 

As 5G moves into the enterprise, MNOs can bring tremendous value with their extensive knowledge of mobile network security and performance. This will require a shift from the ‘best effort’ delivery of services approach to one where they can monitor network KPIs and application performance, measure the end-to-end service experience, and deliver the actionable insights needed for guaranteed network management performance. Additionally, operators can help conduct regular security assessments to continuously identify security risks and verify the efficiency of the controls in place to protect against threats. When private 5G networks are delivered via network slicing, there will be different SLAs per slice, bringing added flexibility but also complexity to the private network. Finally, operators can offer their private 5G customers end-to-end active testing to ensure highly reliable services—and customer satisfaction. The combination of all these capabilities will enable closed-loop orchestration, service assurance, and auto-healing capabilities, allowing the enterprise to enjoy the high performance of a private 5G network without being bogged down by the operational complexity.

Private 5G networks present an enormous opportunity for mobile network operators—opening up an entirely new market and paving the way for unparalleled future innovation and growth in the connected enterprise space.