By Nicc Lewis, VP Marketing ASOCS
The Private 5G market slowdown
There have been many reports recently citing an apparent slowdown in the Private 5G (P5G) Markets, consolidations of the vendor market, and even closures. Previous predictions have been downgraded and some vendors even reporting less optimistic results and some struggling or disappearing.
There are a number of reasons given including the global economic recession, and supply chain issues in ordering 5G hardware such as servers and radio units, but many say adoption in real-world settings has not happened as quickly as expected.
The delays in regulations in the United States under CBRS may also be a contributing factor. However, this does not take into account other industrialized nations such as Germany, Japan, and South Korea to name but a few.
Why would ASOCS welcome a slowdown?
It would seem absurd that ASOCS, a P5G vendor, would welcome reports of a decline in the outlook for Private 5G. It is not a case of blind optimism, although the outlook is promising, or blind faith, or wishful thinking.
Other than a positive outlook for growth in the market, we also see the market settle. As we move into a maturation phase and application to real-world use cases, any decrease means a market form of natural selection, and, quite frankly, ASOCS has self-belief that its core DNA is built not just for survival but strength and growth.
Why has the adoption of P5G stuttered?
The need for stable and reliable wireless connectivity in order to promote digitization in various industries like smart manufacturing, logistics, and hospitals, among others, is greater than ever. Private 5G addresses these requirements like a hand in a glove. Industry 4.0 was faster to start testing and Industry 5.0 has been even quicker in deploying P5G, with ports, smart warehouses, and logistics quickly following suit. Most industrial countries have allocated spectrum for enterprise use, including the late arrival of CBRS certification in the United States.
Part of the problem has been disappointment in testing, as seen in our recent article – Not all Private 5G’s are equal. Other factors include supply chain issues and global economic problems. The sluggishness seems to be more a case of caution than will – leading to a delay in projected timelines.
Separating the wheat from the chaff
ASOCS never saw Private 5G as a compelling drawcard for enterprises, but as a foundational connectivity technology for the implementation of practical computation and AI to improve decision-making in optimization for mission-critical process by connecting physical objects with a digital replication in real-time. In short, Private 5G is the enabler for real change rather than being a real change.
The key to success when looking at moving from laboratory conditions to real-world applications is scalability. There are 3 considerations:
- Ability & Adaptability
- Ease
- Cost
In a slowdown, if you cannot meet all three, you will struggle. With some companies, moving from the lab is nearly impossible, being inherently built to connect on a smaller scale. With others, it is a case of adaptability to give a single network coverage, especially when dealing with indoor and outdoor (campus) sites.
Vendors locked into a single hardware provider, like Radio Units (RU) may also suffer from long delivery times or incompatibilities to the environment.
Larger solutions can be cost-prohibitive and not suited for smaller or medium-sized enterprises. ASOCS overcomes these difficulties by being based on O-RAN, giving an edge in natural selection as the connectivity market evolves.
Staring challenges in the face
In adverse conditions, there are always those who benefit. During the pandemic, real estate and home improvements boomed, not to mention mask and hand sanitizer manufacturers. The ASOCS view is not about thriving in adverse conditions, but more in line with market leaders emerging as competition thins out. Think about the early days of personal computing from which Microsoft and Apple emerged to be the tech giants they are today; or the plethora of mobile phone operating systems that fell by the wayside or how Netflix not only survived the end of video rentals to become the company it is today.
The need for Private 5G Networks will continue to grow as the bedrock for sustainable digitization in many fields. The strongest and best-suited solutions will not only survive but thrive.
