The role of network operators in private 5G networks : business model innovation to provide value to private 5G

Abstract

Mobile Network Operators (MNO) built cellular networks over the last five decades, from its first generation to 5G today. The use of these networks is now fundamentally transformed by 5G: From human communication and Internet services to machines. Digital transformation and Industry 4.0 are creating a new demand paradigm, resulting in a growing need for dedicated private 5G networks.

Regulators in more and more countries are looking to dedicate radio spectrum for private network use and license that directly to enterprises allowing them to build private 5G networks. Radio spectrum for telecommunication purposes used to be solely licensed to MNOs to build public wide area networks – a hegemony that is now being disrupted. At the same time, other market players in the IT/telecommunication industry adopt their product portfolio and services to sell private networks to companies.

This thesis endeavours to answer the question of whether, and how, network operators can still play a meaningful role in the private 5G market considering the disruption created by fast-moving players in the 5G era ecosystem. What values can a network operator provide to that market? What changes in the operator’s business model are required? And what impact do these changes have?

Network operators are at a turning point to decide whether to solely focus on public network connectivity or entering the market to implement new 5G use cases. Operators need to assess their unique strengths and assets to determine the value they can bring to the private 5G market.

This thesis investigates the opinion of all private 5G ecosystem players including network quipment vendors, cloud service providers and system integrators. It elaborates deployment models, use cases and focuses on the value a network operator can contribute.