5G campus networks: Private 5G networks on the rise
The most important result of this survey is that companies are very interested in 5G campus networks: 90 percent of executives expect 5G to become the new network standard.
And companies’ plans to build their own 5G networks are well advanced. Around half of those surveyed (51 percent) would like to do so within the next six to 24 months. Many have already put a 5G network into productive operation or are currently piloting it. According to the NTT survey, Germany is particularly advanced in this regard.
40 percent of the companies surveyed in Germany already have a private 5G network or are in the process of setting one up, in Great Britain only 28 percent, in Japan 26 percent and in the USA 24 percent of the companies surveyed do. But by 2023 at the latest, this lead should be caught up, because by then only another 39 percent of the companies in this country want to have set up their own 5G network. In Japan it is 61 percent, in Great Britain 55 percent and in the USA 52 percent.
95 percent of the decision-makers based in Germany are firmly convinced that company-internal 5G networks will sooner or later replace the conventional WLAN infrastructure. Reason: WiFi networks are not secure enough, that’s what 98 percent of executives in this country believe. And that’s why the CIOs hope that 5G will improve data protection and IT security. In addition, the decision-makers assume that a local private 5G network can meet business-critical requirements far better than a WLAN and are currently building their own 5G campus network infrastructure.
With ransomware on the rise, CIOs are looking for ways to strengthen their cyber defenses against increasingly sophisticated attacks. According to the report, as many as 69 percent of executives say the security level of their current infrastructure is inadequate. Other weaknesses of the conventional communication platforms are the control over one’s own data (48 percent), the coverage and the speed (43 percent) as well as the excessively long latency times of the current service providers (40 percent).
the NTT and Economist Impact report also clearly states that the most common hurdle in the deployment of private 5G networks is the integration of this technology into existing systems and networks (44 percent of responses). The complexity associated with the installation and management of private 5G networks is cited as another major obstacle by 37 percent of those surveyed. The lack of technical skills and expertise among employees is the third most common difficulty in 5G rollout – 30 percent of companies complain about exactly this.
Therefore, 38 percent of CIOs prefer to outsource the implementation of private 5G networks to an MSP (Managed Service Provider). Leveraging a 5G campus network”as Service” can shorten the time to market and also offers a better end-user experience and a higher return on investment, according to study sponsor NTT.
For Kai Grunwitz, Managing Director at NTT Ltd. in Germany, it is obvious that companies that “discover” 5G campus networks will experience an unprecedented competitive advantage: “Whether digitization of factories, autonomous driving or intelligent medical technology – private 5G helps your own business model safe to digitize,” says the NTT Germany boss. In his opinion, 5G will become the new network standard.
In an interview with ChannelPartner, Grunwitz also warns against using 5G technology from China: “You should always keep control of your own network”. Cologne-Bonn Airport is one of NTT’s first 5G customers in Germany.
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