- MGLW picked Nokia for a utility private 5G network in the U.S.
- SNS Telecom & IT told Fierce that the deal is worth $31 million
- One analyst told Fierce that Nokia has hundreds of similar deals worldwide
Nokia has been chosen by Memphis Light, Gas and Water (MLGW) to build a comprehensive private 5G network for the company. The deal makes MLGW the first municipal utility in the United States to implement a full-scale standalone 5G private wireless network.
The network will support MLGW's multi-year grid modernization strategy across Memphis and Shelby County, Tenn., which will enhance power distribution to its more than 420,000 customers. The grid will reduce the risk and customer impact of unplanned outages and enable MLGW to restore service to the public more efficiently.
Nokia said it will deliver a private 5G wireless network, including its AirScale radio access equipment and its 5G Core Enterprise system. The contract also includes a microwave backhaul solution and towers supported by Nokia managed services, as well as Nokia’s NetGuard cybersecurity products for threat detection and response and privileged access management.
“The 5G Network Deployment is a foundational aspect of MLGW’s Grid Modernization Initiative,” said Doug McGowen, CEO of MLGW said in a statement. “We will be able to meet the requirements for a modern electric grid...This enables more automation and smart control operations and supports future technology like electric vehicles and battery storage.”
“Sub-1 GHz wide area critical communications networks for...utilities...are anticipated to begin their transition from LTE, GSM-R, and other legacy narrowband technologies to 5G towards the latter half of the forecast period,” said SNS Telecom & IT in their latest private 5G report, which covers the period 2025 to 2030.
Deals like MGLW and Nokia's are possible now thanks to the 3GPP Release 18, which "adds support for 5G NR equipment operating in dedicated spectrum with less than 5 MHz of bandwidth, paving the way for private 5G networks operating in sub-500 MHz, 700 MHz, 850 MHz, and 900 MHz bands for..smart grid modernization,” the analyst firm noted in the report.
“Even with relatively limited bandwidth in the sub-1 GHz range – commonly used in the utilities sector – standalone 5G technology can deliver considerably lower latency for grid operations compared to LTE,” said SNS’s 5G research director, Asad Khan, in an email to Fierce.
“MLGW’s network is being deployed using 2 x 5 MHz of Band n71 (600 MHz) spectrum – specifically 647–652 MHz paired with 693–698 MHz – which it acquired from Bluewater Wireless for $27 million. The estimated value of the multi-year private 5G deployment project is $31 million,” he added.
Nordic utility rivals
Ericsson and Nokia are the main competitors on private networks in the U.S. and beyond. “Outside of China, Nokia and Ericsson are pushing hard in the market, along with challengers like Celona (that has partnerships with NTT Data and Verizon and has been pushing into the Industry 4.0 space) and others. Nokia claims about 200+ private networks in utilities worldwide, AvidThink principal Roy Chua in an email to Fierce.
“Ericsson recently won the Lower Colorado River Authority (LCRA) in Texas, spanning 68 counties and is working with the National Rural Telecommunications Cooperative (NRTC), Southern Linc, and Anterix to provide private networks to electric cooperatives (co-ops) of ‘all sizes and service terrains’ across the United States. The utilities, logistics, and transportation markets have always been hotbeds for private wireless deployment, so it makes sense the leading providers will compete aggressively there,” Chua added.
We can expect many more private 5G utility deals coming down the pipe. “Most [of the private 5G deals are] involving licensed Band 8/106/n106 (900 MHz LMR) spectrum. In addition, we expect to see increasing interest in networks leveraging T-Mobile’s soon-to-be-former nationwide holdings in Band 26/n26 (800 MHz), which Grain Management is planning to lease to utilities for private networks,” SNS’s Khan adds.
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