Telecom Infra Project (TIP) has announced its latest project group, focused on bringing open platforms into 5G private networks.
Private networks are currently enjoying a strong surge even in 4G, as enterprises and industrial sectors look to harness mobile connectivity to enable their own digital transformations. Enterprise services are expected to be the biggest source of new revenue and ARPU growth for 5G operators, though there will potentially be conflict between the established MNOs, and more specialized enterprise-focused service providers, whose economics will be enhanced by access to shared or unlicensed spectrum such as the USA’s CBRS general access band.
Another factor in making it more cost-effective for non-MNOs to deploy private networks is affordable equipment with a broad ecosystem of networks and devices, somewhat like the enterprise WiFi market. TIP says its new 5G Private Networks solutions group will focus on improving quality of experience to demanding enterprise standards, while keeping costs down.
It aims to address the big challenge that has faced enterprise cellular build-out in the past. The MNOs’ economics have revolved around a wide area, outdoor-in model and it has been difficult for many operators to find a profit in deploying smaller, more specialized networks indoors to suit enterprise needs. This is why private networks – which can be deployed and run by enterprise specialists or neutral hosts as well as MNOs – are in sharp focus for 5G.
That creates potential challengers to the MNOs, and they risk being cut out of the market just as it is starting to promise the growth and profits to make build-outs worthwhile. TIP, which is driven by major operators such as Vodafone, is taking the line that open platforms will help the telcos retain pole position in the value chain against such challenges.
The group argues that open platforms will make it more affordable and profitable to deploy cellular networks indoors and to bring top level coverage and capacity to enterprises. It says that 5G private networks will enable established operators to implement new network management and operational models, including full automation, to improve their overall economics.
It is working on on-premise radio equipment that will support high end requirements for bandwidth and low latency, as well as localized processing to ensure privacy and near-real time analytics. It will also define approaches to the management and operations of 5G private networks from the cloud.
Telefónica’s Juan Carlos García, a TIP board director, said: “This new solution group will enable operators to address the exciting opportunities that 5G is creating in the enterprise segment, both through valuable features for our customers and more efficient network operations.” Telefónica will test the private networks management solution in its TIP Community Lab in Madrid and then move to field trials in Málaga, southern Spain.
García said: “The TIP community is the perfect environment for this innovation, as it will allow us to leverage multiple current project groups … to deliver an end-to-end minimum viable product.”
It will be important that TIP takes advantage of work that has already been done to make cellular networks more affordable and deployable in private industry environments. Small Cell Forum, for instance, has working groups addressing technical and operational requirements for private network operators and for industry-focused neutral hosts. While SCF’s focus is more on encouraging a more diverse base of service providers, rather than improving the business case for tier 1 operators, the actual work items are likely to be complementary.