Businesses, especially those involved in any sort of networking or technological development, need fast, secure network connectivity to foster success and rise above the competition. As such, management teams are constantly looking for new and innovative ways to improve network performance.
If you’re a decision-maker at your organization, you’ve probably heard about private 5G or private LTE networks during your research. Each option has the potential to enhance security measures and streamline various online processes needed for organizational functions.
You may be wondering which of these network options will best suit your company’s needs, the costs your organization may be expected to invest in new networking services, and the benefits that stand to come from implementing new technologies.
Keep reading to learn more about the cost and ROI of both private 5G networks and private LTE networks. Then, we’ll briefly explain each private network type’s functions and the benefits each network type presents to users.
What is Private 5G?
A private 5G network is a mobile connection service available to non-public entities such as businesses and government agencies. These networks can use licensed, shared, or unlicensed spectrums to enhance a company’s online efficiency and provide well-rounded support for new ventures.
There are several types and setups for private 5G networks, including the following:
- Private 5G that’s available through network slicing (ex: Radio Access Networks)
- Hybrid networks that combine private and public 5G services, which enable businesses to buy or lease on-site equipment and employ the use of public or private hosting services
- Private 5G that’s wholly owned and operated by the organization, meaning that the customer owns the equipment and is in charge of network management
Some businesses take this networking approach due to the reduction in starting costs and access to management assistance.
The Cost of Private 5G
The cost of a private 5G network varies significantly from one setup to another. Price variations might be related to the hosting company the organization chooses or the unique features needed for the service.
For example, one big-name private 5G provider lists several pricing examples depending on the account details.
- 1 Private 5G Unit and Intraregion Data Transfer = $7,200 for 30 days
- 2 Private 5G Units and No Data Transfer = $14,400 for 30 days
- 2 Private 5G Units and Data Transfer to Web Services + Tablets = $28,425 for 30 days
The larger the organization and the more complex the technological needs, the higher the price will likely be for a private 5G network.
Private 5G ROI
Given that the costs can be quite steep, many business owners and IT management professionals wonder whether the investment is worth the price.
Regarding ROI, most surveyed respondents noted improvements greater than 10% in several performance areas, with some claims over 20%.
95% of respondents saw improvements in employee collaboration, decision-making, internal efficiency (74%), production quality (74%), emission reductions (70%), and reductions in operational costs (69%).
In addition, private 5G network capabilities enabled personnel to monitor work locations, keep track of crucial pieces of equipment, enhance maintenance responses, improve security, and increase personnel safety.
Additional Benefits of Private 5G Networks
On top of providing businesses with cost-related benefits, there are several additional perks that a dedicated private 5G network can bring to a business. These benefits include:
- Network customization options
- Greater network reliability
- Scalability for growing companies
- Usage flexibility
- Wider configuration options
- Increased network speed
- Improved productivity and efficiency
What is Private LTE?
A private LTE network is one that’s specifically designed to meet the needs of a professional organization, such as factories, utility companies, and government offices. In private LTE networks, only authorized users are permitted to utilize the service and access the internet through the private network.
Private LTEs are flexible in terms of where network coverage will be available, the network’s performance procedures, access and security details, and usage priorities. Unlike public LTE services, a private network grants users fast, reliable connections that don’t slow down when a large volume of users are accessing the network at the same time.
The Cost of Private LTE
Much like a private 5G network, the costs associated with building a private LTE network can vary depending on the specific features and services the organization needs, the size of the organization, and the service provider in question.
One provider’s pricing guide lists private LTE networks as follows:
- CBRS LTE RU for 60 days = $10 per usage hour
Though other companies will likely have slightly different pricing options, this estimate gives interested parties a baseline idea of what they can expect to invest in private LTE service. Taking time to research each host company’s offerings carefully will likely help you and your team find cost-saving opportunities and take advantage of the most appropriate option regarding features and capabilities.
Private LTE ROI
Private LTE networks are designed to be a relatively affordable connectivity option for businesses of practically any size. After investing in one of these services, users can expect to experience the following benefits:
- High bandwidth
- Increased end-to-end security
- Wider network coverage
- Compliance improvements
- Data privacy/protection
- Ease-of-use
Additionally, a private LTE network prioritizes usability and prevents network congestion. This paired with the above-mentioned perks, enables these network types to increase security protocols throughout the organization, store and manage data more efficiently, and reduce costs when it comes to high-bandwidth applications.
Private WiFi or Private Cellular?
Each network type has strengths and challenges associated with its service. Some businesses make use of both private wifi and private cellular networks like LTE and 5G, as each network may better serve specific performance needs. Wifi might be effective in handling daily connectivity tasks, but a private LTE or 5G network can enhance coverage capabilities for manufacturing facilities and business applications that require significant network strength. Dual network usage may also provide reliable on-site connectivity and broader location-based cellular networks available for employees and clients connecting from a distance.
Deciding which networking service best fits your organization’s needs is no easy task. Hopefully, this article provided you with helpful estimates and information your team can use to make a more informed choice about your networking options. Research your private network opportunities carefully and compare them against the list of features your team needs.
