In almost every enterprise private wireless network (PWN) engagement, I come across the question of what technology to select: 4G/LTE or 5G1? Deciding between LTE and 5G is often complex and needs careful analysis. Here, I outline the top 5 factors to help in the decision making process.
1. Performance & Features
The PWN has to meet the use case SLA requirements for throughput, latency, jitter, power consumption, operating mode (e.g. mobile, fixed), reliability, and availability among other requirements. Identifying the application QoS metrics and mapping that to the technology performance parameters is one of the first steps. For many in the enterprise segment, this is a challenging step because they lack of the technical understanding.
Network features are another aspect. Some features are only possible with 5G, while other features run well on LTE because it’s a mature technology. IoT connectivity is one example where NB-IoT on LTE is sufficient to meet the most use case requirements, such as device density and power consumption. In this case, 5G will add little value in most of today’s IoT connectivity applications.
One of the challenges that enterprises come across, is determining the application requirements which are sometimes not obvious. In cases where the requirements are well known, the challenge lies in assuring service quality to the device level. This challenge presented by private networks differs from the approach used in the design of public networks.
2. Cost
5G equipment run at double the price of LTE, if not more. Cost needs to be considered among other factors for the right tradeoff. For instance, if the application is short range and demands several gigabit per second of throughput, then 5G is the technology of choice because it’s capable of operating in the millimeter wave bands, unlike LTE which is not capable of meeting such speed. On the other hand, LTE is a cost effective option for an open wide area coverage application that requires a few megabits per second of throughput.
3. Ecosystem
Availability of base stations and devices in the frequency bands of the enterprise is a basic issue. LTE is an old technology: devices and base stations are available in different bands ranging between 700 MHz to 3500 MHz. 5G availability focuses on the mid-band spectrum bands as the ecosystem aligns with service provider requirements. However, the ecosystem is hesitant from making more investments in LTE: there’s higher anticipated RoI for 5G. This creates a gray zone where neither technology is readily available: it’s hard to source LTE for lack of interest/low perceived RoI by vendors; and hard to close the 5G business case due to high cost.
4. PWN Type and Architecture
The type of the PWN – for instance, an independent network or a dependent PWN that relies on a public network, plays an important factor in technology selection. When the PWN is independent of any service provider, both 4G and 5G are options to consider. However, most dependent PWN are based on 5G due to business and technology reason. For instance, operators seeking a new revenue stream from managing enterprise PWN choose 5G to justify the investments and match the service lifecycle. The flexibility of the 5G core network architecture allow different deployment scenarios – such as on premise edge computing or network slicing – leading to different cost options and tradeoffs in security and privacy profiles.
Deciding between independent and dependent PWN is a decision fork that one needs to consider carefully. Data privacy and security are among the most critical aspects of PWN when it comes to architecture and deployment.
5. Geographic Location
This is one on the simplest issues to deal with! In certain countries, one is limited to a specific technology. For instance, China focuses on 5G. The Chinese market structure mandates PWN partnership between the enterprise and mobile network operators. This is supported by a shared indoor spectrum allocation in the 3.3 – 3.4 GHz band where MNOs could deploy enterprise PWNs.
Additionally, spectrum is a factor of the enterprise location. This is another critical factor that impacts technology selection.
Final Remarks
We’ve seen a high focus on 5G in smart manufacturing. This is due to different reasons. For instance, video streaming is demanding in terms of capacity, especially for the uplink path. This is an example where LTE often fails to deliver on the requirements of the use case. Low latency is another requirement, but for the most part, it has not been a critical issue since LTE could be designed to deliver sub 30 msec latency which is sufficient for a great number of applications.
Sectors that have favored LTE include oil & gas, mining and utilities. In these instances, spectrum availability, mature technology and low cost structure played a large role. When used to connect people, LTE and VoLTE is the practical alternative.
1 Wi-Fi is also part of the technology mix, as are other technologies including those based on industrial or proprietary standards. You can download a brief comparative analysis between Wi-Fi and 5G here.
I have developed an engagement on private wireless networks with my Xona Partners colleagues to help enterprises and other organizations develop their market and technology strategy. The engagement includes: 1. A workshop which could be customized to customer requirements; and 2. strategy brainstorming sessions to help the organization draft its approach for PWN. See here for brochure or contact me for additional information.