- Wi-Fi or cable replacement are key reasons to switch to a private network, according to SNS Telecom & IT
- Another analyst noted that robots on the factory floor need private networks to operate reliably
- The increasing amount of available shared spectrum worldwide is another major motivating factor to go private
Why should you consider deploying a private network in your factory? Well, if you want to use robots, Wi-Fi just won’t cut it. That’s just one reason to move to a private network.
Fierce Network already looked at the top 5 reasons for enterprises not to deploy 4G or 5G private networks. This time, we are listing out the reasons businesses should think about when considering a private network in a factory, warehouse or manufacturing plant.
1. Shared spectrum matters
Shared spectrum is what makes private networks possible in most of the world.
“The availability of shared and local spectrum licensing frameworks has significantly lowered the barriers for enterprises to deploy private 5G networks without necessarily relying on national mobile operators,” said SNS Telecom and IT’s 5G Research Director Asad Khan in an email to Fierce. “This regulatory shift has been a foundational enabler of a market environment in which equipment vendors, system integrators, and mobile operators compete to deliver the most effective solutions at the best price for end-user organizations. License allocations are continuing to grow.”
In the U.K., around 930 shared access spectrum licenses across four distinct bands have been issued to 118 licensees. In Germany, close to 500 organizations hold 5G campus network licenses, of which just over 210 have been publicly disclosed as the national regulator BNetzA (Federal Network Agency) treats frequency allocation data as trade and business secrets. Among other examples, Japan, South Korea and Brazil have issued approximately 200, 100 and 70 permits for locally licensed spectrum, noted Khan.
In the U.S., due to very recent spectrum auction provisions and a lack of formal protections in the Big Beautiful Bill, there is growing nervousness regarding the future of CBRS shared spectrum. Most at risk is Band 48 (3.5 GHz), which underpins many private 5G networks deployed by industrial giants such as Tesla, LG Electronics, Hyundai, BMW, Toyota, John Deere and others, he said.
Despite this uncertainty, new private deployments are continuing to move forward. For example, Tulsa International Airport has recently installed a CBRS network to provide connectivity for its badging and camera systems at perimeter entry gates. There are also hopes for spectrum sharing in the U.S. military’s 3,100-3,450 MHz band, commonly referred to as the lower 3 GHz band.
2. Robots are coming
To deploy robots on the factory floor, businesses need need private networks. For industrial environments, private 5G networks enable autonomous mobile robots (AMRs), automated guided vehicles (AGVs) and other mobility units.
“Reliable coverage in factory and warehouse environments to support AGVs, sensors and other industrial equipment,” is one of the key reasons that enterprises are taking on 5G private networks, AvidThink Principal Analyst Roy Chua said.
“Hyundai Motor, for instance, has deployed a private 5G network at its HMGMA (Hyundai Motor Group Metaplant America) electrified vehicle plant in Ellabell, Georgia, to support the uninterrupted operation of more than 200 AMRs,” noted SNS’s Khan. “The coordination of AGVs and AMRs is also a key application for other major manufacturers and logistics providers, including Tesla, LG Electronics, Ford, BMW, BASF, Siemens, Midea and JD Logistics," he said.
"An example of a human-centric private 5G application is Lufthansa Technik's VTI (Virtual Table Inspection), which uses a 5G campus network at the MRO (Maintenance, Repair & Overhaul) provider's facility in Hamburg, Germany, to remove the need for civil aviation customers to physically attend servicing by providing reliable, high-resolution video access for virtual parts inspections and borescope examinations at both of its engine overhaul workshops.”
Previous attempts by Lufthansa Technik to implement virtual inspections using Wi-Fi failed because large metal structures blocked the signal, the analyst noted.
3. Wi-Fi reliability issues can stall factories
Wi-Fi’s unreliability in industrial plants is often cited by operators, such as Verizon and industrial enterprises like Airbus, as one of the motivators for ripping out 802.11 wireless networks and replacing Wi-Fi with a private 4G or 5G network.[MW12]. “It’s less about replacing Wi-Fi,” AvidThink’s Chua said. In a factory, private wireless simply works better than Wi-Fi for automated tasks.— “At least right now,” he added.
Many enterprises cite Wi-Fi unreliability as a primary driver for investing in private 5G networks. These include Airbus, LG Electronics, Tesla, Toyota, Newmont, Prinzhorn Group, Chevron, BD SENSORS, CJ Logistics, Del Conca, Wonderful Citrus, Roularta Media Group and more.
In other cases, enterprises adopt private 5G networks to complement Wi-Fi. For example, Kyushu Electric Power leverages a local 5G network to provide outdoor coverage and backhaul for an indoor Wi-Fi 6 network at its Matsuura thermal power plant. Similarly, KHNP (Korea Hydro & Nuclear Power), Hyundai Motor and John Deere are pursuing a multi-technology wireless access strategy that integrates private 5G with Wi-Fi, SNS’s Khan said.
4. No more clunky cables
Private 5G networks are a preferred alternative to wired connections in environments where physical cabling is impractical due to cost, mobility, accessibility or safety constraints.
“For example, at Jaguar Land Rover's Solihull plant in the United Kingdom, a private 5G network has enabled connectivity for sensors and data within the plant's five-story paint shop, which had previously been left unconnected due to the cost and complexity of wired Ethernet links,” SNS’s Khan noted.
Broadcasters are increasingly using temporary and fixed private 5G to support live production and other use cases in locations where wired cabling is impractical, the analyst said.
5. Cops, firemen and rail conductors can benefit
The critical communications sector is evolving to support broadband-dependent field applications for public safety agencies, railway operators, utilities and other user groups.
“This shift is driving interest in moving away from LMR, GSM-R, and other legacy wireless communications systems towards private broadband networks in predominantly sub-1 GHz spectrum (and lower mid-band in some cases). While most sub-1 GHz deployments to date have utilized 4G LTE technology, private 5G projects are beginning to emerge in this space.
For instance, MLGW (Memphis Light, Gas and Water) is deploying a Band n71 (600 MHz) private 5G network to enhance grid communications across Memphis and Shelby County, Tennessee,” Khan said.
These are just five of the reasons why enterprises might choose to implement a private network over Wi-Fi or wired alternatives. Of course, there are more, but whether a factory, a warehouse, a port or a railway hub, enterprises have some compelling arguments for deploying vs. not deploying.