Number of Private Networks for Enterprises Increases, Says ABI Research
Tuesday, May 12, 2020 | Comments

There are initiatives in 15 countries for enterprises to deploy private networks, said global technology market advisory firm ABI Research. This includes both arrangements for enterprises to acquire spectrum directly from the regulator, as well as spectrum assets held by mobile network operators, that focus entirely on providing private cellular networks for enterprises.

“The rising number of these spectrum initiatives underpin the strong momentum for private cellular networks that we see within enterprises around the globe,” said Leo Gergs, research analyst for 5G markets at ABI Research. “With the very economic pricing, we will see even more enterprises expressing interest, as the ecosystem for 5G connectivity matures.”

Just as the question of who will operate private cellular networks for enterprises remains,ABI Research sees more new network operators that are focusing on providing private cellular networks for enterprises entering the stage.

“Specialist operators like Anterix, Ambra, Citymesh, Edzcom and Tampnet will disrupt the market by offering business models to enterprises that follow an ‘everything-as-a-service’ (XaaS) approach,” said Gergs. “Since all these specialist network operators have a system integrator background, they have the vertical-specific knowledge about requirements, pain points, and deployment complexity. These specialist network operators, therefore, enjoy an incumbent advantage over traditional telcos in bringing connectivity to enterprises.”

While large enterprises might have the manpower and the necessary financial resources to manage the network on their own, Gergs notes, “Globally, there are only round 10 million enterprises with more than 500 employees, while there are more than 700 million small and medium sized enterprises with up to 500 members of staff, which will look for third parties to manage a private cellular network.”

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