Private network spectrum, which includes a broad array of airwaves, is essential for accommodating a variety of use cases within private networks. This spectrum ranges from low-band to millimeter-wave frequencies and serves as a critical component for numerous industries. However, this extensive range presents significant challenges, including the achievement of cost efficiency and the global harmonization of the ecosystem.
The consistent growth in the number of private mobile network deployments is a key trend observed in this domain. According to the Global mobile Suppliers Association (GSA), there were 303 private mobile network customer announcements in the fiscal year 2023. This represents a compound annual growth rate of 66% from 2018 to 2023. Between 2022 and 2023, public announcements surged by 28%, amounting to a total of 1,384 announcements. It’s quite possible that the actual number of deployments is even higher, as some announcements cover multiple locations within a single enterprise.
A pivotal driver behind this growth is the increased ease of access to private network spectrum. Countries that allow enterprises direct access to spectrum, rather than depending on leasing arrangements, see higher numbers of public announcements for private networks. The United States, leading the scene with widespread availability of Citizens Broadband Radio Service (CBRS) spectrum, showcases significant progress. The CBRS, specifically designed to support small enterprise users, saw site deployments soar from April 2021 to July 2024, with active transmitters increasing by more than 270,600 to a total of 400,403 CBRS devices. Germany, offering dedicated mid-band spectrum for enterprise networks, follows closely behind the U.S. in the number of private network announcements.
Despite the wide range of spectrum available for private networks, current deployments are most commonly utilizing LTE rather than 5G technology. These deployments span various frequencies. In the Middle East and Europe, sectors like utilities and public safety frequently operate in the lower-frequency 400 MHz range due to its efficient propagation and the ability to provide extensive coverage with fewer sites. An interesting development in this area includes Aramco Digital’s acquisition of a license for the 450 MHz spectrum earlier this year, aimed at enhancing their private wireless capabilities.
The mid-band spectrum, particularly within the 2-5 GHz range and notably the C-Band spectrum (3.5-3.7 GHz), enjoys global popularity for private networks, especially within manufacturing applications. Although still in its nascent stages, millimeter-wave spectrum (24-29 GHz) shows potential for private network solutions but necessitates further market trials and adoption.
One significant challenge is the absence of global harmonization in private network spectrum, which complicates the development of a unified 5G ecosystem. This lack of coordination hinders multinational companies from deploying consistent private networks worldwide. Harmonization is advantageous for cost reduction, uniform architecture, and device compatibility. Although the lack of alignment is a considerable obstacle, regional harmonization efforts, such as those underway in Europe, are showing promise in accelerating industrial 5G use cases.
The European Commission’s forthcoming final decision on harmonizing the 3.8-4.2 GHz band for local-area networks highlights the critical nature of coordinated efforts at the regional level. Within the EU, substantial cross-border cooperation is essential to achieve this harmonization.
To conclude, the extensive range of private network spectrum offers considerable opportunities for diverse applications. Nonetheless, achieving cost-efficiency and establishing a robust global ecosystem necessitate overcoming significant harmonization challenges. Continued growth in private network deployments, driven by improved access to spectrum and regional standardization efforts, is setting the stage for broader adoption and innovation in industrial 5G and private network use cases. The strategic importance of harmonization and regional cooperation remains crucial for achieving a cohesive and efficient global private network infrastructure.
