Pablo Tomasi - Principal Analyst
2021 saw competition multiplying in the private networks market with the official market entrance of new categories such as systems integrators (SIs) and hyperscalers.
Common to these new players is the understanding that private networks are a means to a business outcome, not a goal in and of themselves for the enterprise. Among others, announcements from Microsoft (Private Azure MEC), Google (Google Distributed Cloud), and AWS (Private 5G as a service) have already stolen the show, revealing for the first time their real ambition in this market.
2022 will see these behemoths gaining momentum, striking partnerships and fine tuning their strategy, and yet the game is far from over and MWC 2022 could be the time for the telco world to strike back. Virtually every traditional player in the telco world has been working behind the scenes on a private network strategy, and with the AWS Private 5G announcement calling attention to the opportunity of private networks, all competitors will accelerate their plans and strategies.
Key to the ambitions of telcos is the fact that this market still needs to be built on complex network design and deployments, supported by managed services, which are areas of expertise for the telco world, and which it should emphasize to take back the initiative. What we can expect at MWC 2022 is new private networks service launches, more managed services, and the constant push from existing and new entrant vendors to ease the deployment and management of the private networks.
Hyperscalers unleashed the power of cloud and edge into private networks. Now it is the time for the telco world and ecosystem to channel these developments on their own terms while leveraging their own strengths.
Source: Omdia Private LTE and 5G Networks Enterprise Insight Survey 2021, N:451
AT&T is yet to fully formulize a specific private networks strategy, which is currently addressed as part of various companies’ initiatives. With its direct competitor (Verizon) already having its OnSite LTE (5G) product and with Dish piggybacking AWS’s private 5G, the time is ripe for AT&T to formally announce a clear strategy and set of solutions for private networks.
Cisco has expertise in 5G, Wi-Fi, enterprise solutions, and the industrial market. However, the company has not yet made the big announcements and clear strategic priorities seen by the likes of Nokia, Ericsson, and, more recently, AWS.
IBM has struck a few partnerships with CSPs, such as Bouygues Telecom, and has shown an interest in manufacturing. However, it is yet to fully commit to private networks, which have so far been treated as part of a wider set of 5G solutions.
You can meet with Omdia's expert team at the following events:
Open RAN World (April 26–28, Berlin)
Big 5G (May 16–18, Austin, TX)
Private Networks in a 5G World (June 15–16, London)
