Early adopters of private wireless networks report strong performance on ROI and strategic benefits 

Many enterprises are aware of the potential advantages of deploying private wireless network solutions – but remain hesitant about pushing ahead with deployment. They feel they need more clarity around the business case, specifically with regard to the benefits that will be delivered, and the likely return on investment (ROI). 

Nokia, in conjunction with GlobalData, surveyed 79 industrial enterprises around the world in verticals including manufacturing, transportation, and energy. These companies have already either adopted private 4G or 5G, or are currently evaluating such a move. 

The results from this research should offer immense encouragement and reassurance to enterprises considering deploying private wireless and industrial edge.  

Majority of companies report a noticeable – and rapid – ROI  

More than half of the companies surveyed reported that they had seen their total cost of ownership (TCO) reduced by more than six per cent from an OpEx perspective. Indeed, almost one-third said the TCO had gone down by more than 10 per cent.  

It is particularly striking to note just how quickly that reduction in TCO was delivered. Almost 80 per cent of the enterprises surveyed saw a return on their investment within six months.  

The cost impact of moving to private wireless and industrial edge had been, not surprisingly, the principal concern that enterprises had. Many of the decision makers were particularly keen to avoid any CapEx, which in turn throws the onus on 4G/5G partners to offer flexibility in their terms.   

Most enterprises favor an end-to-end private wireless solution 

Private wireless networks are complex, and they can comprise a sizeable ecosystem of components, devices, and elements. Are most enterprises looking for basic connectivity, or do they require an end-to-end solution?  

While some enterprises are taking a modular approach and deploy one component at a time, most of the companies we surveyed prefer an end-to-end approach. This is because there would be fewer suppliers to manage, which would in turn lead to a lower TCO and faster ROI.  

One driver for smaller enterprises is the lack of in-house technical expertise to take on solution development and integration. The more piecemeal approach is compelling only with organizations that have large in-house development teams.  

Almost 80 per cent of enterprises we surveyed favored the end-to-end approach to drive specific business outcomes and reduce additional internal development cycles.  

This is useful information for Nokia, which sets out to simplify this complex process. By delivering all the ingredients for industrial digitalization in one platform, the process is streamlined – and the solution can interface more easily with legacy systems.  

Private wireless is delivering against other key drivers 

As well as the desire to reduce TCO and show a healthy ROI, early adopters of private wireless had other targets in mind. Strategic priorities included securing the IT environment, business continuity, streamlining business operations, and meeting ESG targets.  

However, the most important factor for most enterprises was worker safety. In manufacturing, transportation, and other industrial environments, this is a significant issue. Indeed, 95 per cent of the companies we spoke to named worker safety as a key or major factor in their decision to invest – and 61 per cent of them have seen an improvement of more than 10 per cent in worker safety.  

Close behind this issue was critical process reliability, which was a key or major factor for 94 per cent of our early adopters. An impressive 74 per cent reported internal material flow efficiencies. 

Other important considerations were the enhanced insights delivered by automated data collection, increased operational agility, the automation of time-consuming tasks, and improvements in cyber security driven by keeping mission-critical communications in a private environment.  

Sustainability is a key consideration for so many businesses, and 48 per cent of early adopters reported reductions of more than 10 per cent in energy use – a huge benefit in an era of soaring energy prices. In fact, 94 per cent reported at least a slight reduction in consumption.   

Overall, between 65 and 75 per cent of all respondents reported benefits in areas including operational efficiency, productivity, increased production quality, reduced down time and reductions in carbon emissions. 

Research data will help future adopters to build business cases 

It bears repeating that large numbers of enterprises accept in principle the benefits of deploying private wireless networks and industrial edge. People understand the advantages of connecting their assets, being able to analyse their data, and increasing their level of automation.  

However, to be able to add a layer of confidence regarding the likely business results to be driven by adopting private wireless represents a significant step forward for Nokia. 

As well as delivering reduced TCO and a noticeable ROI, private wireless can deliver against a range of other benefits. As well as the widely known enhancements implicit in low-latency connectivity, it can also lead to improved worker safety, better cyber security, and increased worker safety.  

Private wireless and industrial edge can help in so many ways when enterprises are looking to embrace Industry 4.0.  

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Is the manufacturing sector ready for private wireless networks?

Many companies across a variety of industries are now testing and validating private wireless technology through proof of concepts and field trials to understand its benefits.

Nokia, in conjunction with ABI Research, recently conducted a survey of more than 1,000 senior executives in organizations across manufacturing segments including automotive, machinery, metal fabrication, electronics, consumer goods, chemical and oil and gas. 

More than 90% said they were considering 4G/5G as part of their mission-critical, control, and communications network upgrades, while 38% said they would use 4G/5G as their primary technology supporting mission-critical operations.   

Is there widespread commercial deployment yet?

There is clearly considerable interest across many manufacturing sectors. As well as field trials, some manufacturers have driven ahead with commercial deployments. However, the adoption process is still at a very early stage. 

One reason is that manufacturers typically have a long factory asset lifecycle, which by definition makes the adoption of new technology a slow process. Also, manufacturers are under constant pressure to keep up with demand and production schedules. Introducing downtime by implementing new technology is not an option. 

It must also be remembered that 5G is an emerging technology designed specifically around industrial applications. Many of the features and functionality that manufacturers want still lie in the future – such as time-sensitive networking, high-accuracy location and positioning, and 5G industrial IoT. 

There will also be a delay while standards are defined, and while chipset manufacturers produce the silicon for these features and functionality, which then has to be integrated into the relevant machines. All this means that it may be a while before we see widespread adoption. 

What will the benefits of private networks be for manufacturing?

The adoption of private wireless networking, together with edge computing, will be a foundational next-generation infrastructure that will enable manufacturers to become more productive and flexible. 

It will deliver the ability to upgrade processes that existing technologies use, such as machines being tethered to an ethernet cable, or wireless systems that work only with a certain type of technology, such as Bluetooth or LoRa. 

LTE/5G private networks are poised to harmonize and simplify future network operations for manufacturers. They will also enable the deployment of more automation, such as mobile robots that can increase the speed and throughput of material handling.

Such networks facilitate the use of HD video for inspection for quality control, which brings reduced waste and increased output that help to meet sustainability goals. 

One of the most important benefits is in the area of worker safety, which is of primary importance to manufacturers. Equipping teams with personal protective gear fitted with wireless sensing devices, for example, means supervisors can be alerted to a hazardous situation such as a gas leak. 

Examples of Nokia enabling industrial sites to deploy private wireless

1. Butachimie, an operator with a chemical plant in France. It wanted to reduce production costs and simplify its overall manufacturing processes. In partnership with Orange Business Services, Nokia deployed a private 4G wireless network solution that supported systems such as closed-caption TV, push-to-talk, push-to-video, and industrial IoT sensing.
2. Arcelik, a multi-national appliance manufacturer, where Nokia participated in the deployment of Turkey’s first 5G-ready private wireless network at a washing machine manufacturer.
3. Alibaba, the largest retail e-commerce company in the world, for which Nokia deployed a private wireless network in a 30,000-square-meter warehouse connecting more than 100 automatic guided vehicles that delivered a sizeable increase in efficiency. 

Five tips for a manufacturer considering the deployment of cellular infrastructure

1. Do not delay in starting this journey. With the world situation unstable, there are persuasive reasons to hold off deployment – but there may never be an ideal time to get under way. Start with a few use cases where improvement is most urgently needed. 
2. Define your KPIs for success – and make sure you get buy-in from IT and OT within your organization. All your teams will have to be on board to enable successful adoption.
3. Select use cases that have achievable results within a relatively short space of time – ideally, in less than 12 months. For example, replacing a legacy Tetra voice network with an LTE network that supports video and high-speed data rates can deliver tangible benefits almost immediately.
4. Add some industrial IoT sensors to existing machines and processes that are experiencing higher than expected down times. By combining the data generated with that produced by the machines already, you should improve your condition-based monitoring and be able to roll out predictive maintenance programs. 
5. After your initial success, you can graduate to more advanced use cases such as the introduction of autonomous mobile robots to improve overall efficiencies.  

Above all, your deployment journey does not have to be undertaken alone. There is a burgeoning ecosystem of partners with the technical knowledge and expertise that will work to understand your business needs – trust them with your digital transformation process.

Private wireless networks based on 4.9G/LTE or 5G are gaining increasing traction in asset-intensive industries. Nokia is currently providing private wireless solutions to more than 450 customers. 

However, Wi-Fi has a role within Industry 4.0, even as digital transformation advances on a broad front. Most of those customers are enterprises with brownfield campuses, which means they have legacy wireless connectivity in place, such as Wi-Fi, that cannot simply be switched off. They may also be using Open RAN, and balancing licensed and unlicensed spectrum. 

Clients using Wi-Fi technology may decide to add industrial 4.9G/LTE and 5G devices for specific use cases – often in contexts where Wi-Fi has limitations with regard to mobility, coverage, and interference management. 

In circumstances where industrial locations use a mix of connectivity technologies, the enterprises concerned need a solution that will enable them both to extract the maximum value from the different systems deployed and to mitigate the resulting complexity. 

How does MX Boost work to reduce technological complexity?

Nokia MX Boost is a new innovation, a Nokia Bell Labs patented technology that makes it easy to combine private wireless connectivity with Wi-Fi. It delivers an aggregated multi-path connectivity that supports OT use cases. Industries and enterprises benefit from:

1. An optimized throughput in difficult radio conditions.
2. Improved data processing in highly critical applications.

MX Boost is an IP-based solution, which means it is extremely simple to implement and has a minimal impact on the network solutions it uses. It is deployed as a bonding and routing application on Nokia’s MX Industrial Edge, and on its multi-modem industrial devices. It works without any changes on wireless access points, making it completely agnostic when it comes to radio technology, spectrum and vendor. 

Enterprises can run MX Boost in one of two modes to meet the needs of different applications:

1. Aggregation mode: This boosts data rates in difficult radio conditions by splitting and recombining traffic for multiple channels. It includes performance probes on both links to measure in real time the quality of the channels to optimize reliability.
2. Replication mode: This duplicates the data and puts the same packets on all radio links, then automatically selects the best one. The aim is to boost reliability, latency and mobility. 

What is a typical implementation of MX Boost?

The most typical usage of MX Boost is to aggregate Wi-Fi 6 and 4.9G/LTE for business-critical OT applications that require high data rates, capacity and quality in specific hotspots.

For example, it takes up to 10 cameras to enable remote control of a port train. A combination of Wi-Fi and 4.9G/LTE bandwidth allows for the exclusive use of 4K cameras. If there is a degradation of the quality of the Wi-Fi connectivity, MX Boost automatically switches back to 4.9G/LTE and to HD cameras. 

There are many other data-hungry applications, such as high-quality sensor-based applications for multi-metal impurity detection, and augmented reality maintenance applications. 

In some countries, industries have access to multiple spectrum bands. So MX Boost can be used to combine various radio technology types like 4G and 5G, and multiple spectrum bands such as centimeter wave, millimeter wave, or disparate 4G bands.

Enterprises can use MX Boost to replicate data connectivity on two 4.9G/LTE bands to improve reliability, which is interesting in areas with challenging radio conditions such as ports, metal factories, and mines. 

What benefits does being vendor agnostic bring?

This is a significant benefit in an age when many enterprise environments are multi-vendor. MX Boost is based on the IP layer, which delivers huge flexibility for the integration of existing connectivity technologies – including in multi-vendor environments, which is important in the context of supporting legacy Wi-Fi.

In the past, it has been said that Wi-Fi is suitable only for IT applications because of its inherent limitations in coverage, mobility, latency, and reliability. However, with MX Boost, it is possible to use Wi-Fi for non-critical OT applications. By using MX Boost in replication, it is possible to get the best performance and reliability from several Wi-Fi bands at the same time – such as Wi-Fi 6 and Wi-Fi 6E – and to support applications such as operation management tools, storage systems, and worker information systems.

How is Nokia strengthening its Wi-Fi portfolio?

There is little doubt that 4.9G/LTE and 5G private wireless networks will become the predominant connectivity choice for manufacturers and other asset-intensive industries looking to reap the benefits of digitalization and Industry 4.0.

However, a recent ABI survey showed that many enterprises still see Wi-Fi – and especially Wi-Fi 6 and 6E – as a viable connectivity option for some non-critical operations. 

Nokia is integrating Wi-Fi as part of its Nokia Digital Automation Cloud. By deploying Nokia DAC Wi-fi, enterprises can make a seamless transition to private wireless as their needs evolve. For other enterprises that have deployed the Nokia industrial-grade private wireless solution, Nokia DAC Wi-Fi can be ideal in providing a complementary capacity layer at specific locations for non-critical applications. 

To learn more, please go to Nokia’s private wireless podcast page.

Pace of private wireless network adoption is set to accelerate dramatically

Now that the concept of private wireless networks has been accepted, Nokia is seeing enormous acceleration in its deployment. The company has delivered enough networks to be confident that the economics for an enterprise are excellent compared to Wi-Fi.

The ability to address use cases that used to be out of range commercially is increasing. Nokia’s outstanding expertise in this field ensures that a wider range of enterprises, from complex environments to small retail units, can enjoy the benefits of private wireless.

Private wireless remains, however, in its early stages, and Nokia is expecting a dramatic acceleration in its deployment. The company has been even more successful than it expected in making the technology easy to use and deploy in a way that suits a wide range of use cases.

How Nokia works to ensure smoother private wireless adoption

Private wireless is a compelling solution for industries because, as enterprises seek to extract more data from their machines, control them wirelessly, or operate a wider range of business processes, this is possible only with the assistance of highly reliable technologies.

Cellular advances such as LTE and 5G are ideal for difficult environments. In the case of ports and factories, for instance, these are large areas with a great deal of metal on site, yet the enterprise concerned requires the accurate collection of uplink data.

Nokia is working to make deployment of private wireless networks easier. The company comes to this new landscape with immense experience in telecommunications, but has evolved to be able to delivery technology platforms in two ways:

1. Plug-and-play: This is a Private Wireless as a Service (PWaaS) model that creates the entire environment, effectively a digital automation service.
2. Bespoke: Enterprises that wish to compile their own solution can do so in a way that combines a radio package with other multiple products to ensure it suits their requirements.

The ecosystem is critical to successful implementation

The enterprise environment is incredibly diverse and complex, with many different segments and specializations. Each use case requires a high level of expert knowledge. In response, Nokia has created several segments internally to cover areas including energy and industry. Its teams work to establish a depth of industry knowledge that informs, and enables the delivery of, the requirements of enterprises within each particular sector.

This is crucial to the process of integrating the right solutions. Its innovation has been assisted by the creation of partnerships with the companies that manufacture the machines at the heart of each network. As a result, the enterprise in question can take delivery of a network that works immediately to a super-reliable standard to the commercial benefit of the client in question.

Pre-integration in this way ensures the creation of a joint road map. An end user – a factory, port, mine, or other complex environment – may have multiple suppliers. But thanks to this greater degree of technological alignment at an earlier stage in the process, that end user does not need to worry about performance, reliability and interoperability.

As a result, Nokia has added a high level of enterprise connectivity to its existing pre-eminence in telecommunications and associated technology – while remaining open-minded to the need to adapt to future requirements.

Indeed, it is essential to accept that 5G represents a learning curve for all parties. Ultimately, enterprises want to invest in technologies that are future-proof and 5G – and 5G SA in particular – are particularly strong in that respect.

If a business begins today on this journey with LTE, it can deploy systems that will be reusable and expandable with 5G in perpetuity. The other key factor with regard to 5G SA is that it is making a significant difference with regard to affordability.

The differentiators in Nokia’s private wireless offering

There are three key elements that underpin the delivery of Nokia’s 5G capability:

1. Radio: The company’s heritage in this field is extremely strong. It has a macro stack with all the features and capabilities required, that can be scaled down for use in a private network, however challenging the conditions are.
2. Industrial connectors: As well as delivering mission-critical connectivity, it is also important to bring in other elements. Nokia has developed a set of industrial connectors, building blocks that can be operated as software applications on the edge cloud. This means that effectively there is an application platform to assist with a seamless, scalable response to use cases.

• Spectrum: The appetite for spectrum is insatiable, and Nokia works with traditional mobile network operators and other partners to ensure the delivery of bespoke infrastructures.

Ultimately, Nokia is convinced that the application of private wireless across industries and sectors is proving even more valuable to enterprise than even the most optimistic predictions. The pace of acceptance, adoption and deployment is set to increase in the months and years ahead.

To learn more, please go to Nokia’s private wireless podcast page.

How mining demonstrates the positive impact of private wireless

 

Few industries showcase the benefits of a private wireless network more vividly than mining. This is a sector in which driverless 300-tonne trucks with wheels two meters wide can be operated from a control center hundreds of kilometers away.  

 

Health and safety is a critical concern in an environment that features monster vehicles and giant machines – and frequent blasts inside a pit. Underground, the challenges are even more significant. There are thick rock walls, narrow corridors and a constantly changing route. It is simply not feasible to cover a whole site with a single antenna. 

 

The importance of digital transformation in mining

 

There are four interconnected KPIs for any mining operator:

1. Safety
2. Sustainability
3. Productivity
4. Efficiency

 

The drive to meet these KPIs underpins most of the transformation projects in the mining industry. If there is a safety incident within a mine, production is halted. Stopping for just a few hours can mean the loss of hundreds of thousands of tonnes, which impacts on both productivity and the bottom line. 

 

An illustration of the impact of private wireless on a mining operation

 

Let’s look at the effect of the deployment of a private LTE-powered autonomous haulage system in an Australian mine. Its operator has more than 50 connected trucks working on collecting the ore that has been excavated. 

 

Merely by installing the private LTE, the mine saved more than €10million through reducing the number of Wi-Fi points required. It also saw a productivity increase of about 75 hours per year per truck – which translated into 1.5 million tonnes more excavated each year. That in turn meant a top-line growth of €50million just from the improved connectivity. 

 

The operator reported a 90 per cent drop in the number of unplanned stops. Because communication with each truck was improved, the amount of fuel consumed dropped too. There was a saving of up to 80,000 liters of diesel per truck per year. 

 

As well as a huge cost benefit in an era of rising energy prices, this also had a big impact on the sustainability of the operation, to the tune of a carbon reduction of 236 tonnes. 

 

How Nokia has pioneered private wireless in mining

 

Mining was one of the first verticals where Nokia demonstrated the viability of private wireless networks, more than ten years ago. Nokia’s first project was rolled out in the Pilbara region of Australia, a major mining area. 

 

Nokia now has more than 35 mining customers, including four out of the five biggest multi-national operators. Customers appreciate the benefits in terms of high bandwidth, low frequency, built-in security, quality of service and, most important of all, ultra-reliability. 

 

Business continuity is crucial to mining, so a reliable network, combined with edge computing capabilities, is a winning mix. The installation of a single private wireless network can bring benefits in terms of mission-critical data applications, remotely operated machines, CCTV, video streaming, communications and a range of Internet of Things applications. 

 

Having one single network infrastructure, which uses private wireless 4.9G or 5G technology, and that works both above the surface and underground, brings significant advantages. Underground is more challenging – radio planning and an appreciation of the tunnel structure are crucial – but ultimately the same network can be used. 

 

Five tips for mining companies considering a digital transformation 

 

1/ Start by consulting your operations teams. It is essential that your private wireless network solution helps to meet those key KPIs of safety, productivity and efficiency. Private wireless should not be technology for the sake of technology.

 

2/ Think end-to-end when you start deploying private wireless. You need to work with your whole ecosystem, not just the shovels, diggers and autonomous trucks. 

 

3/ When you are looking at use cases, start with the low-hanging fruit. Do not try to boil the ocean from day one. There may be IoT data collection for analytics purposes, for instance, that can quickly demonstrate the value of private wireless solutions. 

 

4/ It is essential to validate these solutions end-to-end. Make sure that the interoperability and the reliability of the entire process has been thoroughly tested before any solution is deployed in an actual mine.

 

5/ Look beyond the pit for digitalization opportunities. Private wireless networks bring benefits in many more verticals than just mining. Nokia also works in transportation, railways, roads, sports, shipyards and more. If you look across the whole value chain, it covers stockpiles, processing factories and transportation by rail and sea. Include all these different use cases in your business plan and you will see that private wireless makes more sense than ever. 

 

Mining is a highly specialized industry with specific needs and challenges. However, it is also an essential activity for the world’s economy and the transition to new forms of energy with the help of metals and minerals like copper and lithium. This is one reason why mining is now at the cutting edge of industrial transformation. 

 

To learn more, please go to Nokia’s private wireless podcast page. 

 

How can an industrial site make the right choice of private wireless network? Several varieties of private wireless networks are available – and there is also a choice of the types of provider that can deliver such a service. Our analysis of the sector has generated insight on the process facing a business or industrial site looking to make a decision on the best way to proceed.

What types of private wireless coverage are available?

Essentially, there are three options available to any commercial organization that is weighing up the desirability of private wireless:

1. Local area: Ideal when there is a need for coverage around a particular site such as an airport, retail centre, industrial estate or mining operation. 
2. Wide area: Companies such as tech logistic firms may need connectivity at their headquarters and distribution centers while also requiring coverage on a nationwide level. 
3. Field area: Some firms need connectivity away from their base, but only in locations where they have assets. Examples include rail networks. 

Overall, private networks are the best solution for industrial sites. However, there may be instances when it is economical to use a slice of a public network when it comes to wide area connectivity. In a smart city, for example, it may make sense to use a public network for non-urgent applications such as parking meter communication.

Why is private wireless the best choice in local area instances?

There are three reasons why this option is ideally suited for industrial sites:

1. Familiarity: Such operations are used to effectively owning their local area networks. They are accustomed to having oversight of their connectivity and this allows them to continue doing that. 
2. Performance: Many industrial sites are in non-urban areas, which results in less than optimal coverage. A dedicated local deployment designed to connect key elements of operational technology (OT) is ideal and will deliver the requisite levels of latency and capacity.
3. Reliability: An essential consideration for OT critical applications. Even with dedicated small cells inside an industrial site, a connection to a public network tends to increase the latency. 

What are the various types of supplier of private wireless networks?

Interest in private wireless has grown significantly in the industrial sector in the last year or so. And, with more than 13 million industrial sites potentially requiring such an installation, the market place is becoming increasingly crowded. Several different genres of supplier exist:

1. Telecom vendors: Private wireless is clearly an area of opportunity for such operations. Indeed, Nokia was one of the trend-setters in private wireless when it deployed networks for Rio Tinto at an open mine in Australia in 2015. 
2. Mobile operators and CSPs: They have a lot to offer in this space. They have spectrum, expertise in managing 4G and 5G networks that people use every day, and good existing relationships with the enterprise space. They can also offer critical connectivity nationwide, and many have a dedicated business arm providing enterprise IT and system integration. 
3. CSPs from the IT space: There are companies that effectively deploy a lot of edge cloud servers within enterprise. Our research shows there’s a high degree of trust from enterprise in eco-system players, especially in areas such as mining and manufacturing where network connectivity is a key component of a complete end-to-end solution.
4. IT players and system integrators: Firms such as Accenture or DXC can deliver private wireless solutions to customers.
5. System integrators and consulting firms: They are interested in private wireless as a key enabler for related industries.

Access to spectrum is a key private wireless network consideration

Increasing numbers of countries are releasing spectrum that can be used for this purpose. France was one of the first, as were Germany, the UK and the US. 

However, in markets that have not release vertical spectrum yet, organizations may have to work with a partner that can bring spectrum to the table. Mobile operators are an obvious example; Nokia, as part of its private wireless offering, has links with many spectrum owners. 

There is also the option of using unlicensed spectrum. Wi-fi 5G uses a technology called multi-fire that allows the operation of LTE 4.9G and, while there may be a few limitations, users can still derive most of the benefits in security, mobility and capacity. 

What types of architecture are available when creating a private wireless network?

There are, effectively, three choices of main architecture available, with considerable variance between the options:

• Autonomous private wireless network: All functions, including the core, management and application, are deployed locally at the site. This is the version Nokia has been deploying since 2015.
• Private wireless as a service (pWaaS): Nokia was the first to offer this option, in which all parts of the core networks and the application are deployed locally but the management elements sit in the cloud or your own data center. 
• Core slicing: You have the minimum core elements and applications that you need locally, but the rest are run by a service provider in its own servers and cloud. This is the most economical option. 

The choice of architecture depends strictly on the enterprise in question – there are no definitively good or bad options here. All organizations want the benefits of reliability, good coverage, multi-user capacity, low latency and security that private wireless networks provide, but each will have different strategies and numbers of sites, as well as varying levels of critical connectivity required. 

All three options can serve those needs, but core slicing may be more suitable for the SME market, where firms are not willing to invest heavily in private wireless. 

Telecom vendors are able to focus on the first two options, but some CSPs are looking at all three in the belief that they can offer a solution ideal for each segment of the market. 

How will these three options develop as the private wireless market matures?

In the last year, there has been increasing demand for pWaaS, particularly for industrial sites. This meets all the requirements without some of the complexity that an autonomous system can entail. It is a solution with a lower entry cost and easier access, which is easier to scale over time. 

However, while pWaaS is likely to grow in size and demand among industrial sites, autonomous private wireless networks will remain the favorite option, especially among organizations with larger networks. 

The option of having coverage within a site and while out and about remains highly attractive. It is customizable while offering additional capability and control.

At the same time, core slicing may be a very attractive proposition for SMEs who want the benefits of private wireless networks but don’t have the capability to manage it. 

It will be fascinating to see how the market place develops in the years to come. 

What trends will shape the future of the private wireless 4G/LTE and 5G market in 2022?

The Covid-19 pandemic has had a significant impact on the enterprise world. Not least because it has acted as a wake-up call regarding the importance of accelerating digital transformation. 

Everyone in the enterprise market, from vendors to the enterprises themselves, now understands that such a transformation is increasingly the result of a combination of innovative technologies. These include IoT, edge, 5G, AI and ML.

In this pandemic-affected world, enterprises accept they must use any technology as part of a strategy to deliver a clear business outcome. They also need to be flexible in their processes and adapt to rapid change. 

What does this mean for the future of private networks and digital enterprises in 2022?

Should we expect momentum in the private 4G/LTE and 5G networks market?

This market continues to grow significantly. According to a study by Omdia, in 2021 network roll-outs represented 20 per cent of all announcements.

Growth is no longer restricted to first movers such as the USA. We are now seeing deployments in an increasing number of new countries such as Denmark and Poland.

Deployments are becoming larger and more complex as private networks deliver the right RoI to enterprises.

Will the appetite of enterprises for larger and more complex private wireless deployments increase?

When private 4G/LTE and 5G networks were a novelty, organizations would start with a POC or trial. They might deploy in a single site or test a few use cases. 

Now, with private networks delivering the desired results, verticals such as mining and ports have deployed private 4G/LTE and 5G networks across multiple sites and countries. There is similar momentum across all verticals, including manufacturing. 

Omdia’s survey of 451 enterprises found that by 2023, 34 per cent will have deployed a solution in more than five sites – significantly higher than the current figure of five per cent. 

Should we expect to see private wireless networks leveraging developments in edge computing, cloud computing and cloud environment?

This is one of the most exciting trends set to mature in 2022, which is shown in several examples:

• Cloud-based network monitoring platforms are becoming ever more relevant and popular
• Edge and cloud players are showing increasing interest; 50 per cent of enterprises will need cloud computing and storage as part of any private 4G/LTE and 5G network deal
• In this fragmented environment, edge computing as a distributed computing model to analyse data closer to its source brings latency and cost benefits
• OT applications will need different requirements in latency, workload, ML/AI support, data security and confidentiality – a combination of edge and cloud is the only way to support them fully

What challenges can we expect in the private wireless market?

Some are specific to this market:

• The ongoing struggle to educate enterprises on the benefits of cellular
• The challenge of integrating private 4G/LTE and 5G networks with existing IT systems and connectivity solutions

Others derive from macro trends:

• Private 4G/LTE and 5G networks have been hit by chip shortages because of geo-political issues, the pandemic, and businesses double-purchasing to head off uncertainty
• This leaves vendors in an expanding market facing growing uncertainty over chipset availability

Will 2022 be the year when 5G truly arrives?

Although 5G has been a hot topic for a while, it is still moving slowly into this market. Release 16 in 2020 officially heralded the new era of private 5G, but this is yet to fully materialize.

The expansion of 5G in supporting industrial specific features and requirements will remain gradual. Barriers to adoption include the lack of a wide system of 5G devices, especially in the industrial environment. 

Until chipset vendors fully commit roadmaps and in-depth resources to accelerate this ecosystem, the pace of adoption will remain sedate. 

Will enterprises be able to find the private wireless experience and expertise they need?

Providers that have been active in recent years are now skilled in the design, deployment, management, and other facts of making private 4G/LTE and 5G networks a successful solution. Enterprises can now tap into that expertise.

As more countries unlock spectrum, the potential market is increasing – Brazil and South Korea are recent examples. Other countries that have already begun this process are continuing to expand, including the USA.

MulteFire has also rekindled its push to use unlicensed spectrum to use unlicensed spectrum to support the expansion of private network. 

Ultimately, private 4G/LTE and 5G networks are delivering results – and it is time to understand how to use this solution to your advantage.

For more information visit: nokia.com/networks/private-wireless

How MulteFire is creating and supporting opportunities in private wireless

Nokia, along with Qualcomm, created the MulteFire Alliance in 2015. Its purpose was to create a global ecosystem for the deployment of 4G LTE in configurations that used unlicensed spectrums, and to create MulteFire specifications. 

In the years since, these specifications have been embedded into the 3GPP standards. One example is the additive Listen Before Talk, known as LBT, which helps to ensure smart co-existence with local wi-fi networks.

Industries have realised they need cellular connectivity, particularly LTE or 5G, to digitalize operations and activate new use cases. As a result, private wireless networks are now deployed across the world.

However, in some cases deployment faces a bottleneck in the form of spectrum. In some countries, there is limited LTE spectrum; in the UK, for instance, there is less than 20MHz of spectrum bandwidth available for industries, which need a lot of capacity for data-hungry applications such as video surveillance.

Some other nations do not have a coherent policy in terms of LTE license allocations for industrial sites. They are often too expensive, or not yet adapted to the context. There is also an increasing demand for temporary LTE cellular networks for events, field hospitals or even construction sites.

MulteFire delivers a solution to all these problems. It has 450MHz of bandwidth in the 5GHz frequency band, comes with zero cost, is easy to access and is available in most countries. In the context of the scarcity of spectrum, MulteFire is a gold mine.

MulteFire is much more than an enhanced version of wi-fi

MulteFire is unlicensed, and it leverages some of wi-fi’s spectrum bands. It is, however, far more than simply “wi-fi on steroids”. There are some critical advantages to MulteFire, particularly in the context of Industry 4.0.

1. Coverage: Industrial sites are complex, with walls and panels and plenty of metal, which means radio planning can be a nightmare. MulteFire leverages the capability of 3GPP LTE 4G features, which means one of its access points can deliver the same coverage as more than four wi-fi access points. This makes it a far more compelling deployment than wi-fi.
2. Mobility: This is vital for many industrial applications, such as autonomous mobile robots. They move around a site, which means network connectivity must be always on, everywhere. Wi-fi does not support handovers between access points, so it cannot support this type of business-critical use case, whereas MulteFire can.

• Security: MulteFire is a 3GPP technology with SIM authentication and end-to-end encryption, which makes it superior to wi-fi in an age of increasingly sophisticated cyber attacks.

How Nokia’s MulteFire modem is blazing a trail

Nokia recently announced industry’s first certified MulteFire user equipment, the MulteFire modem. This is a field router that connects to assets such as sensors and machines via USB or Ethernet, and enables them to connect to a private wireless network using MulteFire certified access points.

We use the same architecture and core network as our private wireless network, the Nokia Digital Automation Cloud.

The combination of MulteFire, where no spectrum authorization is needed, and NDAC makes it simple for anyone to deploy a private network anywhere in the world.

Nokia is recognized by major industry analysts as not just a leader, but the leader in this field. We have several hundred customers and are adding dozens more every quarter. Our expertise and experience in the various sectors, regions and countries sets Nokia apart.

While LTE licenses can be a barrier in some countries, with MulteFire it is possible to deliver connectivity in any country in the world. This new innovation will drive the MulteFire ecosystem via the MulteFire Alliance.

For more insights around all things private, 4.9G, LTE and 5G, please contact the private wireless team at Nokia.

Ten questions you should ask when considering deploying a private wireless solution

Is your enterprise contemplating deploying a private cellular network? There could be many reasons for doing so. Maybe you require dedicated bandwidth for large amounts of data, or need high speeds and reliability and low latency. 

Whatever the reason, it’s unlikely that you will have the in-house depth of expertise required to launch and operate such a network in the face of the overarching and day-to-day challenges involved in its use. 

If you decide to bring an expert partner on board, there are ten questions you need to ask. These relate to their experience, technological capability and commitment to the market place for the long term. 

1/ Does the vendor have experience of private wireless deployment?

Your potential partner should be able to prove their expertise by providing quantifiable SLAs – and a history of compliance with similar SLAs with existing customers. 

They should demonstrate their ability to meet KPIs on areas such as repairs and service, plus the bandwidth achieved for different traffic loads and conditions. There should also be endorsements from customers and eco-system partners. 

Ideally, they should have their own solutions, rather than merely being able to assemble third-party elements.

2/ Does your potential partner have a track record of wireless deployment in your sector?

Of course, all enterprises are unique and you’re unlikely to find a one-size-fits-all solution. Your potential partner needs to demonstrate that it has worked successfully with customers in multiple industries – with an associated versatility that enables them to customize the network to meet your outcomes.

3/ Is your potential vendor committed to the private 5G business?

You’re about to make an investment in a network that needs to last. So it’s important to choose a partner with skin in the game for the long haul. Is their private network department well resourced, with a broad range of in-house features? You should also check whether or not the company participates in industry standards groups and associations relevant to private wireless. 

4/ Can their private cellular network solutions be adapted to your needs?

Can they strike the right balance between standardization and customization? There should be flexible Opex and Capex models as options, and support for all types of spectrum – licensed, unlicensed and shared. There should be simplicity, but also the ability to address individual use-case requirements. 

5/ Does your potential private wireless partner have a solution mindset?

You need to see a desire to take responsibility for securing and supporting all the elements of your solution, along with SLAs and a long-term commitment to the process. Take the example of a manufacturing enterprise; will your partner explicitly support areas such as predictive maintenance, asset condition monitoring, and remote configuration and control?

6/ Does the vendor have proven performance specific to your technology?

This is becoming a crowded market place, with numerous start-up software companies advocating cutting-edge solutions. You need to be comfortable that any potential for innovation can be balanced against the shortcomings of a shorter track record. Do you want to be with the latest and greatest, or a vendor with decades of experience, investment and customer endorsements?

7/ Is future-proofing part of your private LTE network solution?

Flexibility and innovation will be key in this space going forward. Some deployments that begin as LTE will need to become 5G in time. You need to feel sure that the deployments you’re thinking about in 2021 and 2022 will still be viable in 2031 and 2032. 

Any potential partner also needs to show an evolution path that means your network and its technology will evolve smoothly to meet future needs without needing to be ripped out and replaced. 

8/ Is your private wireless partner viable and sustainable in the long term?

You need to choose a vendor that will support you over an indefinite period. Of course, nobody can predict the future; but a proven track record, a busy pipeline of ongoing business, and a commitment to R&D all suggest that the strategic bet you are placing now will pay dividends over the years – and decades – to come. 

9/ Does the vendor understand your challenges? 

An advisor worthy of your trust will work to understand the issues that are keeping your CIO and CTO awake at night – and to bring the right solutions to them. They should, quite simply, be in tune with your enterprise so that their technology helps to meet your business objectives. 

10/ Will your partner offer the breadth of private 5G support you need?

As well as their technological solutions, you may require other partner resources including marketing, technical training and sales guides. There may be a partner portal that facilitates ongoing communication and training or sales tools. 

Ultimately, remember that the vendor in question is on the look-out for partners too, to prove the viability of their solution. 

This is an important decision for you and your enterprise – it is worth taking the time to make sure you move in the right direction. 

Why Nokia is so excited about 5G and private wireless technology

At Nokia, we are very excited about 5G. This is the first technology of its kind that has been designed from the start with industry in mind. Over time, it will bring significant improvement to almost 100% of industrial use cases.

That’s why we have launched the industry’s first commercial, 5G SA private wireless solution. We felt the time was right because the 5G architect of the future is set to be the base for all industrial innovation.

Its features include ultra reliability, low latency, time-sensitivity and communication. All of these factors represent a leap forward compared to 4.9G and LTE.

We want to provide the whole system and our partners with a highly reliable system that can really help to accelerate the 5G ecosystem. We want to show them what 5G can do, so that the ecosystem players can integrate this chipset inside their next generation systems.

That element of ecosystem will help to kick-start the market. Without industrial systems and devices, you are quite limited in what you can do in real operation with a private 5G network.

On top of the need for 5G spectrum, and the fact that industrial OEMs have a slow refresh cycle, we don’t foresee an overwhelming volume of 5G private wireless pick-up until about 2025. And 5G private wireless might not overtake private wireless based on 4.9G LTE until the end of the decade.

4.9G capabilities mean a smooth transition to 5G

One of the reasons for this is that 4.9G includes capabilities that will stay on in the age of 5G. For example, LTE-M and Narrowband IoT provide the very deep and wide connectivity for low power, but long battery life, sensor – which is really important for many enterprise applications.

Most private wireless solutions today that run 4.9G can and will provide a smooth evolution to 5G, which will be important in the coming years.

4G dates back several years but, like a good wine, it has got better with age. With every new release from 3GPP, the technology has been enhanced. Plenty of critical connectivity and IoT features have been added, with the result that the most recent version was called 4.9G.

Automotive sector in top gear for the drive to 5G private networks

To put things in perspective, the private cellular market in 2021 remains about LTE rather than 5G in real terms. While key pieces of the 5G ecosystem are being developed, the good news is that 4.9G LTE can handle the lion’s share of current industry use cases.

Most of Nokia’s customer deployments in the last couple of years have been very much based on 4.9G LTE, and we anticipate that many of our customers will be running 4.9G LTE – maybe with 5G – for at least the next five to ten years.

Private wireless based on 4.9G LTE already provides massive leaps in capability and performance compared to former or existing wireless technology.

Nevertheless, there are some specific markets where there is a bigger drive towards 5G than others. That early demand is particularly visible in the automotive manufacturing industry.

The reason for this is that OEMs are designing today the factories that will build cars in five or six years’ time. They are eager to get their hands on a private wireless 5G capability that will drive the 5G industrial ecosystem space and ensure that when they build those factories, they can instantly take advantage of 5G.

Quest for innovation in cellular communication is nothing new

We should not forget that the history of cellular communication technology goes back nearly 30 years. Both 4G and 5G come from a standards body called 3GPP, which represents a large group of different shareholders, both in the telecoms space and the industry.

The first technology that came from this group was GSM, or 2G, back in 1992, which is when the mobile phone became mass market. That was followed by 3G UMTS, before the creation of what we call today LTE or 4G in 2008.

The common DNA for voice technology was the need to bring consumer and enterprise users a reliable mobile service, whether voice or data, in all possible environments.

So the quest for innovation, and the need for reliable wireless communication, is not new. But it’s only in the last three of four years that the industry has realized the potential of reliable high-speed wireless data networks in commercial sites.

We are now in a position where Industry 4.0, and the digitalization that you need, is happening now. By adopting early, with applications such as digital twins, you can start reaping the benefits of increased flexibility, efficiency, resilience and sustainability.

There are plenty of benefits to connecting assets now, and getting real-time data, and an overview of what’s happening at your sites. And, when the time does come for 5G, you’ll be in a better position to make a smooth upgrade to add it to your sites.

For more information: Private wireless | Nokia

To listen to our other episodes: Nokia Private Wireless audio library | Nokia