Two paths to 5G deployments are emerging: consumer and enterprise deployments. The former is how operators make the vast majority of their revenue. The latter is receiving much interest as it promises a new bump in revenue. Enterprise private networks is not a new idea: it has been slow to realize it because of economics among other factors. New technologies promise to reduce the cost structure. Some equipment vendors, like Nokia, are making a bet on private networks. Operators in their turn are looking to play a role in the enterprise market as the consumer segment reached saturation.
In my view, making a bet on the enterprise segment requires new operating models that the mobile ecosystem has been slow at evolving. Moreover, 5G is not a prerequisite to success in this space: it’s not evident that enterprises are ready to benefit from the advantages that 5G provide. Additionally, competing technologies exist. It may be that applications in vertical markets will take time to mature by which time the 5G ecosystem would be ready. However, this only serves to increase the market risk. Continue reading