Why private LTE is a smarter choice than 5G

2023.01.12

Why private LTE is a smarter choice than 5G

While 5G is getting all the attention, private LTE is the more viable and cost-effective option given the current infrastructure in the US.

As connected technologies continue to advance, businesses will increasingly rely on mobile connectivity and coverage. Stephen Kowal, chief business officer at Nextivity, noted that while 5G gets all the attention, private LTE is a more viable and cost-effective option given the current infrastructure in the US.

Today, we rely on smart, connected technologies, not only for basic communications, but also to power devices and machines that need to work faster and with lower latency. While 5G has attracted attention for the opportunities it brings, the current 5G infrastructure in the United States is insufficient to support widespread cost-effective adoption of 5G in both public and private network use cases.

The market for reliable connectivity will only grow faster as businesses and building owners embrace Internet of Things (IoT) technology, from simple sensors to complex robots. Experts at Statista predict that by 2030, the number of devices worldwide that connect to each other, collect and analyze data, and work autonomously to perform tasks will nearly triple from 9.7 billion in 2020 to 29.4 billion in 2030. This raises a big question for many decision makers responsible for managing networks and IT infrastructure: How will they enable IoT devices with so many devices requiring wireless connectivity and 5G being costly?

The public network is not enough

Standard public LTE and 4G coverage coupled with Wi-Fi can be a solution for many companies, although common use among consumers, these public networks cannot guarantee the high throughput, low latency and strong reliability required by enterprise IoT . Some public networks and Wi-Fi services may offer customization in considering signal penetration of building construction materials, but will not necessarily provide businesses with control over data usage and service prioritization, allowing some devices to have more data than others Faster or slower network speeds – this is a must for effective IoT device operation.

Private LTE networks offer an extremely cost-effective solution. With the government allocating new spectrum called the Citizens Broadband Radio Service (CBRS) in 2020, there are now more frequency bands available for businesses to build private networks. While LTE networks are not as fast or as versatile as 5G networks, they are currently the most cost-effective solution for businesses.

Benefits of Private LTE

Private networks are local cellular networks designed to support business needs beyond what public cellular networks can provide. Private LTE offers several benefits, including a high degree of service level customization and built-in security.

Private networks provide these benefits, allowing enterprises to avoid congested and vulnerable public networks, and enabling enterprises to tailor their own networks to the needs of business-critical applications. Since the organization deploying the private network is the only one using it, businesses gain more control over the prioritization of data traffic, giving them the opportunity to design a network that can handle their unique connectivity needs and ensure the smooth running of their most critical applications . Specifically, enterprises can determine how resources are allocated and how traffic is prioritized, including tailoring parameters to optimize reliability based on the organization's settings.

In many cases, private LTE is a preferable solution to 5G because 4G and LTE technologies have been adopted and improved over the past decade, making them more readily available and more affordable. In addition to the limited number of 5G devices currently licensed to work with CBRS, the cost of a private 5G network could be nearly 2x higher than a private LTE solution.

Who Benefits From Private LTE Networks?

Manufacturing is the area that is currently seeing the most immediate use cases for private LTE networks. Imagine the process of painting aircraft parts in a factory. A worker doing a painting job dons a pair of AR glasses to guide the painting for the best results. The data collected by the glasses and environmental sensors is relayed to another person in the control room who can make paint purchasing decisions in real time as they have a clear view of the stock levels of the paint being used. All the different sensors capture safety, quality, health and supply chain data and present it in real time, enabling decision makers to take timely and appropriate action.

The backbone for all of this is a network that supports and ensures high bandwidth, low latency at the exact time the work is performed - it needs to be tailored to the workflow of the business. The wide range and high bandwidth coverage of private LTE networks is perfect for this.

There are countless other industries starting to implement private LTE networks as well. Warehouses, hospitals, mines, and commercial buildings across the country are deploying private networks to support business processes. From managing energy use to powering autonomous storage robots, private networks can allow businesses to work more efficiently.

How to set up LTE private network?

Simply put, private LTE solutions work in a similar way to public LTE in buildings. Before any deployment, system integrators walk through buildings to find dead spots and areas of weak signal.

Working with network engineers and network solutions providers, integrators will recommend the correct equipment and any necessary hardware to ensure consistent connectivity throughout the building, helping to support the functionality required by the business. To enable private LTE networks utilizing CBRS spectrum, buildings require three basic infrastructure elements: a signal source, an evolved packet core, and devices or client devices that can communicate on the CBRS spectrum. Subscriber modules, usually in the form of SIM cards or e-SIM cards, provide devices with access to the network, making the network truly exclusive to the organization.

Once installed, businesses can set various key performance indicators, such as machine uptime, dropped calls, and energy usage, to measure the value and success of the newly deployed private LTE network. Since the enterprise itself has complete control over the network and spectrum, it can troubleshoot and tune the network as needed.

Now is the time for businesses to upgrade and embrace what smart technology has to offer. While private 5G has become an industry buzzword, private LTE networks are powerful, accessible and more affordable. A key cornerstone of many enterprises' digital transformation journeys, the adoption of private LTE networks is the starting point of the road to ubiquitous private networks in the Fourth Industrial Revolution.