Private networks: trends and analysis

of LTE-based and 5G-based networks

The major 5G mobile network operators (MNOs) are currently focusing on applications based on
consumer-oriented mobile broadband (MBB) services. However, the 5G standards are designed to support
a variety of other applications. For example, the same technology that is used in major 5G mobile networks
can be tailored to be used in private LTE/5G networks that address the complex and highly bespoke nature
of the 5G services that enterprises and a range of sectors might be interested in.

Analysys Mason’s Private LTE/5G networks tracker provides useful data on the range of private LTE/5G networks that are
currently being deployed. In this article, we use this data to illustrate the trends in the use of private LTE networks and private
5G networks and explain these trends in terms of new 5G standards and spectrum availability.

What are private LTE/5G networks?

A private LTE/5G network is a cellular network that is built Private LTE/5G networks are often used to connect a diverse
specifically for an individual enterprise. Such networks are range of device types. Private 5G networks in particular are
most commonly deployed on a single site (for example, in a being used to wirelessly connect a large number of sensors
factory or a mine). Private LTE/5G networks can also be and different device types and to provide wireless connections
deployed to address wide-area network requirements such as with performance that is comparable to that from fixed
a utility’s need to monitor a transmission network. Private cabling. This is needed to maintain the high reliability and low
LTE/5G networks differ from public mobile networks; the latency that is required for real-time data analytics, image
latter are typically currently designed to support the wide- analysis and control-type applications.
area network requirements of the consumer smartphone
market.

There are several deployment models that can be used for

private LTE/5G networks. Some of the key differences
between these models are the type of spectrum used, the
core network architecture and how the network is deployed
(for example, by an MNO, specialist company, equipment
vendor, system integrator or the user itself).
 Private networks: trends and analysis
of LTE-based and 5G-based networks

The main users of private LTE networks are different to those of private 5G networks

Our latest data indicates that a growing variety of applications and sectors are using private networks. A wider range of vertical
markets are using LTE-based private networks than 5G-based networks, largely because LTE technology has been available for
longer (Figures 1 and 2).

Figure 1: Users of LTE-based private networks, worldwide, from data published in June 2021

2%
19% 20% 3%
4%
Mine
Factory
7% 2%
19% 20% Port
3%
3% Smart
4%
Mine city
Airport
Factory
4% Transmission network
7%7%
Port
3% 13% Industrial
Smart city plant
4% Public
Airportsafety network
4% Railway
Transmission network
7%
5% 13% Power station
Industrial plant
11%
4% Other
Public safety network
6% 10% Railway
5% Power station 11%
6% 9% Other
6% 10%
6% 9%
Figure 2: Users of 5G-based private5%
networks, worldwide, from data published in June 2021
14% 14%

5%
14% 14%
10% Mine
Factory 16%
Port
10% Research
Mine centre
46% University
Factory campus 16%
Other
Port
15%
Research centre
46% University campus
Other 16%
15%
10%
16%

10%

Nearly half of the 5G private networks that are currently listed in our tracker are deployed in factories. LTE-based private network
use is more fragmented; the main users include factories, ports and mines.
 Private networks: trends and analysis
of LTE-based and 5G-based networks

5G networks support more-advanced applications than LTE networks

LTE-based private networks have mostly been used for MBB connectivity (for example, mobile workforce), industrial equipment
connectivity and asset tracking, as shown in Figure 3. Private 5G networks are also being used for industrial equipment connectivity
and asset tracking, but are additionally used in automatic guided vehicles (AGVs) (Figure 4). These applications use 5G’s low-latency
capabilities to enable real-time data capture, real-time process analysis and intelligent maintenance. Advanced applications can
also make use of the new spectrum that is available for 5G networks that has wider contiguous channels and advanced antenna
systems to provide the additional capacity and network performance needed for the most demanding applications.

Figure 3: Applications most commonly supported by LTE-based private networks, worldwide, from data published in June 2021

6%
2%
3%
4% 24%
Mine 6%
Factory 2% General connectivity
7% 3% Industrial equipment
Port
4% 24% Asset tracking
Mine
Smart city
General connectivity
Smart grid
Factory
Airport
Port
Transmission network
7%7% Industrial
AGVs equipment
Asset tracking
Not disclosed
Smart city plant
Industrial
Smart grid
Push-to-talk
Airport
Public safety network
Transmission
Railway network
7% AGVs
Drones

Industrial plant
Power station 11% Not disclosed
Security cameras
23% Push-to-talk
Other 71
Public
Other safety network
Drones
Railway
Power station 11% Security cameras
15% 23% Other 71
Other

15%
Figure 4: Applications most commonly supported by 5G-based
8% private networks, worldwide, from data published in June 2021
14%

8%
14%
Mine 24% General connectivity
Factory 16% Industrial equipment N
Port Asset tracking li
Mine
Research centre 24% General
AGVs connectivity sp
Factory
University campus 16% Industrial equipment
Not disclosed Na
Port
Other Asset
Other tracking li
Research centre AGVs sp
University campus Not disclosed
Other 16% Other

24%
16%
24%
 Private networks: trends and analysis
of LTE-based and 5G-based networks

New spectrum is enabling additional use cases for private 5G networks

Analysys Mason’s Private LTE/5G networks tracker indicates that private LTE/5G networks use either licensed mobile spectrum,
shared access spectrum (such as CBRS spectrum in the USA) or local access licences. The latter are becoming more prevalent
with 5G now that specific bands for local 5G use have been made available in several markets. These bands vary between
different countries, but prominent examples include the 3.7–3.8 GHz band in Germany, the 3.8–4.2 GHz band in the UK and the
2570–2620 MHz band in France.1 CBRS spectrum in the 3.5 GHz band has been available for some time in the USA for use in both
LTE and 5G private networks on a shared access basis.

Most of the systems listed in Analysys Mason’s tracker are still reported to be using licensed mobile spectrum (that is, spectrum
licensed to MNOs). However, a growing number of private 5G networks are making use of locally licensed spectrum that
regulators have made available to support private network deployments (Figure 5).

Figure 5: Type of spectrum used in private LTE/5G networks, worldwide, from data published in June 2021

80%
71% 73%
LTE 5G
Percentage of private networks

70%

60%

50%

40%

30% 25%

20% 14%
8% 7%
10% 5%
0%
0%
Nationally licensed Local Shared Unlicensed
spectrum

The bands that are typically used vary depending on the market in question. The most commonly used bands for LTE-based and
5G-based private networks are shown in Figure 6.
60% 57%
Percentage of private networks

LTE 5G
Figure 6: Most commonly used frequency bands for private LTE and 5G networks,
50%
by region, worldwide,
42% 42% from data published in June 2021
40%
Region LTE 5G
30%
Europe 2.6 GHz and 3.5 GHz 3.7–3.8 GHz and 3.8–4.2 GHz
22%
Americas 20% 3.5 GHz (CBRS)
17% 3.5 GHz and mmWave
Asia–Pacific 1800 MHz 28 GHz
10% 7%
5% 4% 3%
1%
0%
Network MNOs Specialist Enterprises Systems
equipment network integrators
providers providers

1
The European 5G Observatory provides further details on the various approaches to private 5G network spectrum in Europe. European 5G Observatory (2020), 5G private licences spectrum in
Europe. Available at: https://5gobservatory.eu/5g-private-licences-spectrum-in-europe/.
 Private networks: trends and analysis
of LTE-based and 5G-based networks

One benefit of the new 5G 80%

spectrum is that it is better-suited to low-latency applications that need wider channels. This means
73%
that more-demanding factory-based71%applications could be delivered over wireless 5G links instead of fixed
LTE cabling.
5G The use of
Percentage of private networks

70%
wireless technology may provide a range of benefits to users, such as greater scalability and flexibility to move or reconfigure
machinery without the constraints
60% of wired connections. These wider channels are principally available in spectrum bands in the
3.4–4.2 GHz frequency range, and are not available within the bands most commonly used for private LTE networks, such as 1800
50%
MHz and 2.6 GHz.
40%

30% getting involved with private

MNOs are increasingly 25% network deployments

20% 14%
MNOs are increasingly getting involved with the deployment8% of private 5G networks (either as network providers or delivery partners)
due to the complexity of 5G10% 5% that 5G7%
technology and the demanding factory and industrial applications is being used to support.
0%
Indeed, for private LTE networks,
0% the majority of systems are managed by network equipment providers (NEPs), whereas there is an
equal split between the share of systems managed
Nationally by NEPs and
licensed those managed by
Local MNOs for private Unlicensed
Shared 5G networks (Figure 7).
spectrum

Figure 7: Providers for private LTE and 5G networks, worldwide, from data published in June 2021

60% 57%
Percentage of private networks

LTE 5G
50%
42% 42%
40%

30%
22%
20% 17%

10% 7%
5% 4% 3%
1%
0%
Network MNOs Specialist Enterprises Systems
equipment network integrators
providers providers

Analysys Mason’s consulting team provides strategy, technology, regulatory and spectrum advice in
relation to private networks. This article is based on Analysys Mason’s Private LTE/5G networks
tracker. For more information on private networks, see Analysys Mason’s What are private LTE/5G
networks and why are they important?