5G success begins with private networks
5G success begins with private networks

5G success begins with private networks

Private 5G can serve as a key enabler for economic growth with innovative solutions and products.

It is not a stretch to say a national carrier 5G rollout could be years away. But, let’s all step back and give due credit where 5G can have immediate benefit—the enterprise space, which is not dependent on a nationwide rollout

Private 5G enterprise networks or Campus rollouts around the likes of ports, airports, factories, entertainment facilities, and metropolitan areas offer some of the greatest 5G opportunities.

In this vein, a groundswell is beginning to emerge where such campus implementations will deliver new value to enterprises not currently available through 4G or WiFi network solutions.  From our vantage point, private 5G will not only succeed, but can also serve as a key enabler for economic growth with innovative solutions and products.

Don’t just take our word for it, the emergence of Private (Campus) 5G Networks is being validated today with these market indicators:

1. Telecom industry realignment to address Private 5G networks

The potential disintermediation of the carrier to deliver 5G solutions directly to the Enterprise customer is bold and a key indicator on why we see Campus 5G Networks advancing quickly. Original equipment manufacturers (OEMs) are stepping out of the carrier’s shadow, announcing unconventional plans to bring private 5G networks directly to the enterprise.

  • Nokia has publicly announced its plans.
  • Huawei and Samsung are making strategic plans.
  • Qualcomm and Cisco are aggressively developing 5G Enterprise solutions.
  • Ericsson is publicly playing it safe with carrier allegiance, yet they still have direct access to the marketplace.

2. Re-focusing of carrier mindset on importance of the Private 5G network

Carriers, too, have ratcheted up their attention on the Private 5G Network market. AT&T strongly reinforces their intent to develop their enterprise 5G network service while continuing to aggressively upgrade 5G networks elsewhere. Verizon’s network-centric strategy has always focused on flexibility and serving multiple use cases. While Europe may be trailing, Deutsche Telekom has advanced the first 5G campus for an industrial manufacturer, and stresses the need for both public and private networks on their spectrum. And Telefonica launched its Enterprise Private Networks solution geared to serve the Industrial 4.0 community.

3. Uptick by enterprises raising their need for Campus 5G networks

Let’s also not forget ‘that customer comes first’. Campus 5G networks and subsequent innovation platforms that accompany it are in high demand. A recent Gartner survey confirms two-thirds of organizations intend to deploy 5G by 2020. 

5G delivers where 4G and other technologies have failed. Security, device and sensor connectivity, low latency, high bandwidth, flexibility and control are motivating factors driving enterprise desire to launch their own Campus 5G Networks—aggregating momentum at the industry level that’s gaining the attention of countries who want to ensure their economic engines are well tuned. Dedicated spectrum bands for industry use and additional unlicensed spectrum bands have been allocated or are under discussion in several countries and the enterprise community wants more.

All of these factors indicate that industries are eagerly awaiting Campus 5G Network solutions and will be more eager to pay the premium to enable innovation and accelerate technology to gain a leading edge in the marketplace.

A 5G national buildout is not the true litmus test for 5G success—enterprise campus 5G network adoption will accelerate as fast as it can, now the telecom industry needs to prove they can keep up.

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KPMG is helping businesses capture new value, power productivity, and fast-track innovation with secure 5G ecosystems.  Get KPMG insights on driving transformation to help create sources of value, operate with more agility and precision, enhance customer centricity, and empower your workforce.

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