Network X 2023 on private networks

How can telcos improve their approach to private 5G and maximise the enterprise opportunity??

During Network X 2023, Pablo Tomasi , Principal Analyst - Private Networks and Enterprise 5G, Omdia , delivered a presentation looking at key areas where telcos can improve their current approach and maximise the potential of the private network market.?

Here, Network X Series reports on some of the key takeaways from Pablo’s Network X presentation below. ?

“Private 5G is a new gig that is opening new markets”?

Private 5G is perceived as one of the key opportunities for telcos to show how 5G can drive revenue growth.??

Omdia currently predicts that the private 5G market will be worth US$9.3 billion by 2028.?

Prior to private networks, telcos had no business (literally speaking) on a factory floor, or in a mine. Private 5G unlocks untapped opportunities for telcos in new verticals, opening up new contracts, and helping them to diversify their revenue portfolio.?

For the smart telco, once this new business relationship is established with enterprises via the private networks opportunity, this opens up the possibility to also upsell and cross sell new services to the enterprise.??

“Telcos have been gifted private 5G but are stuck with tech talks”?

Telcos must remember that enterprises want solutions not technology-driven conversations.??

We know that 5G can enable the most cutting-edge tech, from drones to remote surgery. However, telcos must remember that what the enterprise wants is often not driven by the newest, most innovative use cases.?

Bearing out this point, an Omdia survey reveals that for now, the majority of enterprises are interested in private 5G to support the following applications:??

• Connected worker – 45%?
• Asset tracking – 39%?
• Worker safety – 36%?

Comparatively, these three use cases drew the least interest from enterprises in this survey:??

• AR/VR – 11%?
• Autonomous guided vehicles – 9%?
• Drones – 9%?

“Private and hybrid: focus and market segmentation (more than technology) will win the market”?

There has been a significant shift towards hybrid private networks. If telcos feel the pressure to monetise their public networks after significant investment – there can be a temptation to push hybrid private networks solutions to customers to support that aim.?

Arguably, a better long-term strategy is focusing on selling the right solution to the customer to suit their specific business needs. Sales teams will need to be trained to tailor their approach to correctly address the customer’s priorities.?

“Edge computing will be an emerging narrative within private networks; it opens the door to applications”?

Edge computing is becoming a driver for enterprises to deploy private networks.??

According to Omdia research:?

• 1 in 5 enterprises sees ‘improve data computing’ as a key driver for private networks?
• 1 in 3 enterprises buys additional edge computing services?
• 1 in 2 enterprises sees ‘lower computing/cloud operating cost’ as a benefit?

Edge computing will potentially open up the opportunities within private networks further, enabling a wider range of enterprise applications, and with it, further revenues streams.??

However, as edge computing becomes a bigger part of the private networks story, the question for the industry to consider is, what will this mean for the role of hyperscalers, telcos and vendors within private networks, and how will the competition in this market evolve??

This article is based on Omdia analyst Pablo Tomasi’s presentation during Network X 2023 in Paris. For more news on the mobile ecosystem, including on private networks, follow Network X Series .??

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