Global mobile Suppliers Association database reveals 64 new customer references since Q1, reaching 1,212 networks
Despite the hype around 5G private networks, the majority of new deployements are still choosing LTE, according to the latest global data released by GSA.
The total number of organisations deploying at least one private mobile network increased in the 2nd quarter of 2023 to 1,212, a net addition of 64 customer references and up from 1,148 in Q1 2023. LTE is used in 899 of the catalogued customers deploying private mobile networks for which GSA has data; 5G is being deployed in 537, or 44%, of these customers.
The GSA’s latest market status report – for members’ eyes only, reveals how the use of LTE and 5G varies by industry and by country, with some industries and countries such as Hospitals and Germany skewing more toward 5G, while LTE is more dominant in verticals such as oil and gas, mining and countries in Latin America.
The report suggests there is a positive correlation between the number of private mobile network references and countries with dedicated spectrum. Telecom regulators are also showing signs of making increased allocations of dedicated spectrum available for private mobile networks.
Spectrum for private mobile is typically issued in small tranches in specified locations, with some regulators also making it available to be acquired directly by organisations instead of by mobile operators, giving industries an alternative deployment model.
Nine of the top 10 countries have dedicated spectrum for industry, with Spain and Norway the latest countries to allocate dedicated spectrum of this sort, according to the report.
But how accurate is the report?
The dataset and report are based on public and non-public information provided by executive members of GSA’s Private Mobile Networks SIG, including Airspan, Ericsson, Keysight Technologies, Mavenir, Nokia and OneLayer.
On average, 65% of references – and 80% of the references added in 2022/2023 in the report are non-public and unique so will provide some insight in an otherwise hard-to-measure market segment. This number can be higher for certain industries, with more than 80% of sectors such as military and defence, maritime and power plants not visible in the public domain.
The illustrate the difficulty, Australia’s regulator the Australian Media and Communications Authority just published a new market study on the existing and future market for private wireless networks using 4G or 5G.
It found that the mining and resources sector has more than 50 private wireless networks already in operation, with more in planning stages. ACMA suggests there may be between 300 and 1,000 private networks globally and added that in Australia, it did not find any operational 5G private networks, outside trial settings.
However, the GSA found Australia had 16 organisations with private mobile network deployments on one or more sites: 11 are LTE, 2 are LTE and 5G, 2 are 5G and 1 is GSM-R. Of course, GSA is counting the number of organisations deploying networks in more than one location – that are worth more than €100,000 – not the number of networks deployed but this highlights how difficult it is to quantify the market.
“The exact number of existing private mobile networks is hard to determine, as details are not often made public. Even trying to track the number of existing customers can also be challenging,” said GSA president Joe Barrett. “Addressing this gap in data and industry understanding is the driving force behind GSA providing the first and most comprehensive database of customer deployments of private LTE and 5G networks worldwide.”
“A large number and a wide range of market participants are actively engaged in developing and delivering solutions for private mobile networks. With so much opportunity, and so many regulators planning initiatives to make spectrum available for LTE and 5G private usage, we expect significant market developments over the next couple of years,” he added.
Big, but not that big
However, using Australia as an example again, mobile operators shouldn’t be hoping private networks are going to be a panacea for revenues under pressure. ACMA said the Australian private wireless network market was valued at AUD$130m in 2021 and reported that the market will grow nearly 30% annually over the next five years to be worth AUD$695m by 2027.
In comparison, the public mobile network service market is significantly greater – worth AUD$12.4bn in 2021 and expected to grow to AUD$14.7bn in the same period.
Barrett also welcomed industry associations 5G-ACIA and OnGo Alliance into GSA’s private mobile networks SIG. “We’re delighted to welcome our industry colleagues from 5G-ACIA and OnGo Alliance as members of the PMN SIG and will be working with all SIG members to gather data and publish further statistical updates covering the private mobile sector during 2023,” he said.
Image, above: Ericsson and Telia joined forces to launch the Baltics’ first enterprise 5G private network at Ericsson’s Supply Site in Tallinn, Estonia.