Key Role of Private Cellular Networks in Unlocking Business Value

Key Role of Private Cellular Networks in Unlocking Business Value Niranjan Talreja | Senior Business Development Director Telecom, LTTSKey Role of Private Cellular Networks in Unlocking Business ValueContents

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The need for enterprise digital transformation has gathered steam since the onset of the pandemic. While the first movers enjoyed clear advantages when it came to maintaining business continuity, most enterprises had to jump on to the digital bandwagon not only to safeguard themselves from future disruptions but also to unlock new opportunities.

In this pursuit, reliable, high-speed connectivity has evolved as a key enabler. Forward-looking enterprises are revisiting their networking models to establish the most business-aligned and
future-proof connectivity ecosystems.

The global enterprise connectivity market is booming, with reports projecting the enterprise network equipment market alone to be worth upwards of $97.2 billion by 2027 – a CAGR of 5.4% since 2020. The connected enterprises market had tipped the $400 billion mark globally in 2021 itself, and is expected to grow even further due to the effects of the pandemic and the technological advancements, especially in the fields of 5G networking and IoT. These findings bode well for enterprises that are actively pursuing connectivity overhaul and service excellence.

But they also raise some critical questions – are the current network infrastructure architectures resilient enough to serve as the backbone of new-age enterprise connectivity? Will they be enough for enterprises to unlock value at scale while also reducing costs considerably? Will they be secure enough to withstand the increasing cybersecurity and data privacy threats?

Let us find out

Connectivity and Intelligence: The Bedrock of the Future of Work

Industries have witnessed gradual progress over decades through several phases such as mechanization, mass production and service delivery, the proliferation of computers and the internet, and early steps of automation. Industry 4.0 is the age of connectivity and intelligence that relies heavily on cyber-physical systems, smart technologies, end-to-end digitization and automation of operations conventional networks are simply proving insufficient for Industry 4.0.

If we momentarily think about the progress of connectivity tools and services over the last few decades, it is clear that most of those innovations do not suffice for industrial enterprises.

While through the years audio-video streaming and digital collaboration have become easier, faster, and more cost-effective, the cyber-physical systems and smart factories today need more from their networks. This is precisely where private cellular networks have gained credence and an increasing number of enterprises are adopting them proactively as they offer significant advantages over alternatives 4G public networks, where they provide good coverage, have demonstrated voice and data connectivity with the highest level of security and reliability. Enterprise Wi-Fi complements LTE public networks in many “carpeted” enterprises. However, industrial environments are typically larger campuses with indoor and outdoor connectivity needs, may not have reliable public cellular networks, and in many cases, have a lot of machinery. Combined with the high bar for missioncritical security and the likelihood of heavy loading on the network due to a large number of machines being connected, neither public cellular nor Wi-Fi alone has proven to be sufficient for such environments.

The industry is concluding that Private LTE and 5G networks are the answer.

Fig. 1:

A Comparison of Public Network vs. Wi-Fi vs. Private LTE vs. Private 5G networks

Market projections for the global 5G enterprise market is set to top $10.9 billion by 2027, up from $2.1 billion in 2021. This equates to a remarkable CAGR of 31.8% in the forecast period, with the widest adoption in North America and the APAC region. Private LTE/5G networks are expected to generate global spending to the tune of $5 billion by 2026 and the manufacturing sector will account for almost 40% of that amount. Such developments vindicate the timely transformation initiatives of enterprises that already have or are in the process of establishing private networks.

Future-proof connectivity required by industrial enterprises that can deliver uninterrupted, fast connectivity is required for cyber-physical systems that need to be deployed. Some key considerations for today’s industrial enterprises are:

High speed and low latency: To avoid lags and ensure continuous delivery, it is paramount for the network to be fast with minimum latency.

High reliability: With the number of connected devices growing every day, the network must be stable and reliable enough to mitigate unforeseeable service outages.

Wide coverage and mobility: The working space is growing rapidly with devices spread out. The network must be able to provide high mobility and cover indoor and outdoor spaces with equal ease.

Improved cybersecurity: Data exchanges must be entirely encrypted, and in many cases, on-premise and secured, to reduce the security threat surface and reduce business impact.

Future readiness: The network of choice must not only address the immediate enterprise connectivity requirements but also cater to future needs as they evolve.

Private Cellular Networks: Delivering Business-critical Connectivity

Of the more than 14 million factories worldwide, a large number are expected to deploy private networks. In addition to manufacturing, 5G-enabled private networks will be of particular significance to automotive, health and life sciences, oil and gas, mining, and retail industries. Some of the capabilities enabled by private cellular networks include connected drones, Autonomous Guided Vehicles, Autonomous Mobile Robots, AI/ML computer vision-based applications and many more.

Here is a look at a private network enabled factory of the future:

Given the mission-critical nature of a private network deployment, enterprises need to prepare their network upgrade plan with care and adequate consideration to the on-ground realities.

A private cellular network, therefore, offers a mélange of technical, operational, and commercialbenefits. And these benefits culminate in business value generation.

Here is a detailed view of the various benefits of a private network:

Coverage and stability: Private networks provide complete indoor and outdoor coverage with a distinctive advantage over Wi-Fi networks. In the current scenario, Wi-Fi networks are often found wanting when the enterprise demands wide coverage of touchpoints that are spread out. Even with multiple Wi-Fi nodes, these touchpoints may experience lags during the handovers. In contrast, private networks ensure seamless operations with little to no service lags and uninterrupted availability.

Latency, mobility, and agility: Private networks offer a latency of less than 50ms across coverage locations with heavy and light loads and throughput. Wi-Fi networks are sufficient when the load is low, but prove inadequate when the load is high, recording high latency. As a result, private networks offer a much greater degree of mobility and agility to enterprises. Private networks are much like railroads that enable synchronized and standardized transfer of load while Wi-Fi networks are like freeways that often cause traffic congestion and delays due to unsynchronized movement of traffic. Seamlessness is the key and private networks provide that with ease.

Deployment: Setting up private networks is easy and fast. Generally, PoCs are ready within a day and the subsequent deployment of the network is done within days. Also worth noting is the need for the deployment of just two LTE APs for indoor and outdoor coverage, which implies a much lesser deployment time compared to the deployment of 24 APs for Wi-Fi networks for indoor and outdoor coverage.

Cost efficiency: Deploying private LTE/5G networks can make enterprises incur high CAPEX, but it also leads to a considerable reduction in OPEX. Private networks demand infrastructural development and deployment, but it involves a one-time cost. However, there is minimal need for constant software upgrades and infrastructural overhauls. As a result, a private network cost much lesser in the long term.

Network upgrades and future-readiness: Private networks are designed to make a quick and easy shift from LTE to 5G with minimal component changes. This ensures that the network upgrades are few and can be made easily as per requirement. Additionally, private networks offer a greater degree of customization to enterprises compared to Wi-Fi and public networks.

Looking Ahead

For enterprises to establish private networks and steer their digital transformation initiatives, they may require the expertise of knowledge partners who specialize in value engineering. L&T Technology Services offer a diverse service suite that enables enterprises to expedite their technological and business outcomes. Our enterprise connectivity services are industry tested and future-ready.

Here is a snapshot of our end-to-end enterprise connectivity service offerings:

Contact us to know more about how we can help you establish your private network and unlock
business value at scale.