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What solutions are there for managing Private Mobile Networks?

Wed 13 Nov 2024

Mobile Private Network sales will require a change in the way MNOs are approaching their clients.

Mobile private networks (MPNs) are emerging as a complex toolbox for service providers. Their solution design combines a high set of variables including customer perception, functional requirements, financial benefits and technical capabilities. 

Market potential and growth forecasts

Nevertheless, according to Analyst Analysis Mason, this market is expected to reach $9B in 2028, which represents one of the few growth area in a flattish wireless market within developed countries. Let’s take a look on this intricated matrix and see how it can be turned into an opportunity. 
The disruption of the telecom supply, accelerated by the virtualization and the advent of 5G Standalone (SA), opened a wide range of possibilities for services to enterprises. A large set of business verticals can look benefiting from mobile private networks, to throw a few examples:  

  • port authorities to secure and optimize manutentions on a wide area (to connect cranes, trucks, and shipping containers) streamlining operations through improved tracking and automation 
  • manufacturing (connectivity of machines, robots, and sensors) to facilitate real-time monitoring and automation while keeping data on their premises for better security and performances 
  • Large venues like stadiums and convention centers can use MPNs to offer enhanced experiences for attendees, including high-density Wi-Fi, location-based services. 

Technical challenges and design solutions

Each one of these use cases has a completely different requirement in terms of security, performance, and coverage, ranging to missions critical in the manufacturing to more add-on services in the case of venues. Demand may combine several characteristics such as push-to-talk for workers and Low Powered WAN for sensors in the same industrial campus such as a refinery. 

On the supply side there are major different solution paths: a fully dedicated integrated solution on one hand and an operated solution based on slicing on the other hand, which can by hybridized with customized pieces. Let’s have a look on some drivers: 

  1. Regulation: Only a few countries (20+) allow enterprises to purchase directly licenses from the regulator (mainly in Europe). This drives the supply side in the other countries towards Mobile Network Operators (MNO) and operated solutions. 
  2. Customer approach: Some enterprises prefer capital ownership and will favor private solutions, they consider telecom infrastructure as a critical investment, similar to their manufacturing facilities. 
  3. Security: It is possible to dedicate a slice to a customer. Its immediate benefit resides in the enhanced security, which allows implementing customized policies. Even further, stricter security requirements, such as keeping all customer data on-premises, can lead to the implementation of mobile edge computing resources. Ultimate security is a stand-alone solution, but it is technically not mandatory. 
  4. Performance: Tailored Quality of Service is not provided by the slice itself (which is just an isolation) but can be attached to it. At the end of the day, a better network behavior will require specific assets: dedicated spectrum, additional radio equipment. A customer-dedicated slice is not required but can ease the delivery of the solution. 
  5. Coverage requirements can also drive the choices: MNOs, which cover wide areas, will be well positioned for a transportation use case (public transportation like a bus, private truck fleet,…), but less relevant for a remote area poorly served where a new infrastructure needs to be set up (like a mine).  

Role of mobile operators in the evolution of private Mobile Networks

For an established mobile operator, these challenges can be turned into a competitive advantage capitalizing on the credentials in mobile operations and long-term partnerships with B2B customers.  

In fact, Mobile Private Network sales will require a change in the way MNOs are approaching their clients. Instead of picking up into a Service Provider Portfolio, first steps would be rather to gather customer context, in a consultative selling approach:  

  • Business consulting: Assessment of possible solutions depending on criteria which are not just technical (security requirement) but also fit with customer objectives (that can be pay-back period),  
  • Technical consulting: Assistance to a vendor selection, contractualization, project Planning, license granting, terminal compatibility. 
  • Technical delivery:  site surveys, integration within existing IT, cloud and cybersecurity 

For a MNO this means several copernician revolutions: 

  • Do not favor systematically shared solutions, even if there are technically sound, because other considerations can drive customers’ choice 
  • Partner with potential competitors: Traditional hardware vendors like Nokia play both game of shared and dedicated solutions. Integrators which have the capabilities to deploy complex projects, can become subcontractors, expanding the operational capabilities of MNOs. 
  • Consider new vendors. Add Little estimates that Alternate Network Providers (such as Affirmed Networks, HPE/Athonet, etc. ) get the biggest share in MPN deployments.  

A successful deployment of a private network requires deep understanding of market strategies, product specifications, and the technical sense of engineering expertise when it comes to network design and integration.

MNOs are in an ideal position to take advantage of the Private Networks market, since they master all the ingredients of the recipe. Nevertheless, they will have to transform the way they sell and operate solutions.
 

David Erlich

Consulting Director