By: Saurabh Verma & Sami Shaikh
Emerging technologies adopted by enterprises to support their digital transformation initiatives have generated much data regularly. However, this data must be transferred and analyzed faster to get the desired outcomes. Therefore emerging technologies have to rely on the networks that are not only capable of carrying large volumes of data but can also cater to their demands of ultra-low latency, high bandwidth, and the ability to support a substantial number of devices simultaneously.
5G networks can accommodate such requirements, and globally Mobile Network Operators (MNO) are rolling out 5G. In addition, many MNOs are offering 5G virtual private networks that can provide enterprises with uninterrupted, dedicated, and SLA backed network performance; without the challenges such as skills, cost, and long deployment lead time. A 5G virtual network is an isolated network carved out from the existing public 5G network, which restricts the devices that connect to it. A 5G virtual network can be provided to an enterprise, typically using a 5G network slicing over the public mobile network. In this case, the enterprise can benefit from most of the advantages of a private network. However, without the upfront cost or complexity involved in installing and operating on-site wireless infrastructure, enterprises also have the flexibility to leverage the public network for one or more services.
5G virtual networks aim to create a dynamic and robust virtual private network based on an advanced cellular communications infrastructure, capable of meeting the demands arising from enterprises. The ‘slicing’ function divides 5G virtual networks into different slices or layers; each layer can be individually designed, deployed, and controlled. In addition, each slice can be designed to cater to a specific use case or the needs of a group of users in a business process. For enterprises, the value of virtualized private 5G networks and their ability to be sliced into discrete layers is evident. It enables them to optimize latency, transmission rates, QoS, security, automation, time-to-market, and cost. From media and entertainment to healthcare, manufacturing, retail, transport, energy, and agriculture, 5G Virtual Networks have had a significant impact on how these industries use their communications networks to deliver next-generation services and products and optimize their business processes.
A virtualized private 5G network can manage the needs of different businesses, such as one business may require extreme reliability and low latency, another may need high bandwidth but have less demand for low latency. In addition, a virtualized private 5G network can be designed to guarantee certain connectivity-related characteristics for the associated services, such as analytic capabilities, security-related services, or specialized charging. Enterprises can customize their virtual networks to cater to their digital transformation needs, which make 5G virtual networks more attractive to enterprises, in turn by providing several specific 5G virtual networks for different enterprises and various industry verticals, MNOs will be able to gain new revenue sources.
Overall, although 5G networks impact the consumer market, the biggest growth opportunities for MNOs and their suppliers will be in helping a wide variety of vertical industries. 5G capabilities and virtual network deployment will enable deployment of many advanced technologies that needed for vertical industries’ connectivity-based operations and processes.
5G Virtual Networks: Digital transformation driving global adoption – Industry Use Cases
During the initial stages of 5G commercialization, there were opinions that verticals must have their own dedicated, isolated private networks to meet the highest standards, especially mission-critical networks for the emergency services, utilities, and public transport. However, recent studies carried out by European Commission show commercial networks can fulfil this role when designed to meet vertical needs. Today, industries in several countries have started adopting virtualized private 5G networks, which has reduced the need for a dedicated standalone network but instead can utilize a well-designed public 5G network. Additionally, the growing use of the Internet of Things (IoT) and other emerging technologies generating enormous amounts of data is further driving industries to consider virtualized private 5G networks. As a result, 5G Virtual Networks deployments have been seen in several parts of the world – supporting multiple use cases across different industry verticals.
Adoption trends in Americas
The Americas was one of the early adopters of 5G technology. MNOs in this region have already rolled out virtual private 5G networks for several industries and will start seeing tangible returns from 2022 onwards. At the moment, more than 85% of revenue generated by MNOs from 5G Virtual Networks stems from enterprises across all verticals. Some of the prominent use cases seen in the region are in the following verticals:
Healthcare
5G will stimulate the market for telemedicine services. It is forecasted the telemedicine space to display a 2019-2025 compound annual growth rate of 48.6% in the United States. 5G devices will utilize the vastly improved wireless infrastructure to allow for remotely managed telemedicine procedures with a high quality of service.
Remote Surgery
The most ambitious use case for 5G is to enable remote surgery, in which a surgeon operates a robot to perform or assist in the procedure. This will allow for access to talented surgeons no matter the location of the surgeon or the patient. Remote surgery expands the potential for robotic surgery. Current options include assistive remote surgery, which involves instruments that are directly controlled by doctors to make small incisions, ensure accurate placement of medical devices, and close the patient when the procedure is completed and fully automated remote surgery, in which instruments can perform surgical tasks end to end without the need for human intervention.
Current tools include remote-controlled robotic arms and miniature cameras for minimally invasive robotic heart surgery (e.g., mitral, tricuspid, or aortic valve replacement).
5G virtual private network offers a near real-time capability that will provide the network connectivity and low latency needed to advance remote surgery over the next 3 to 5 years.
Manufacturing
Smart Manufacturing
A leading telecom operator used 5G Ultra-Wideband capability in the Corning factory in Hickory, North Carolina. As a result, the companies are working together to build the 5G factory of the future. The network is being used to prove how 5G can enhance factory automation and quality assurance functions in one of the world’s largest optic fibre manufacturing facilities. For example, engineers in Corning can use 5G to speed data collection dramatically, allow machines to communicate with each other in near real-time, wirelessly track and inspect inventory using 5G-connected cameras. They will also test how 5G can improve the function of autonomous guided vehicles (AGVs) by helping them move more efficiently around the factory floor.
Adoption trends in APAC
The private cellular network market in Asia-Pacific provides a unique growth opportunity for 5G Virtual Networks, driven by the robust ecosystem of collaboration and availability of spectrum. In addition, the COVID-19 pandemic has accelerated digital transformation for industries and has made reliable connectivity more critical than ever. Private cellular networks can address enterprises’ on-premises connectivity needs by customizing the network to enable capabilities and use cases that are difficult to achieve with traditional wired or wireless network solutions.
Local governments in the Asia-Pacific have implemented initiatives to liberalize the spectrum and standardize private cellular networks for industrial use. For instance, the government in China is supporting 5G rollouts by accelerating their adoption. The Ministry of Industry and Information Technology (MIIT) has provided guidelines on stopping new IoT connections on the 2G/3G network. This approach has encouraged service providers to migrate mobile connections from 2G/3G networks to 4G/ 5G networks. Such initiatives by the government have also resulted in operators deploying more 5G base stations. As per MIIT, there are 819,000 5G base stations in China, which provide 5G networks to all cities – accounting for more than 70% of the total 5G base station deployed globally. Support and collaboration from regulators and government authorities will play a key role in 5G deployment and adoption.
The manufacturing, logistics and transportation, and healthcare sectors will present the biggest opportunities for virtualized private 5G networks in Asia-Pacific. Among all the potential deployments, manufacturing, logistics and transportation, and healthcare sectors are expected to account for 28.7%, 15.4%, and 15.9%, respectively, in 2025. Furthermore, as the number of connected devices in the industrial environment increases, deploying private 5G networks to handle vast data will become a requirement.
Manufacturing
Smart Manufacturing
China’s leading telecom operator, and Haier have completed a deployment of edge computing, 5G and machine vision into Haier’s manufacturing environment. With this solution top of the range stainless steel refrigerators are visually inspected, in near real-time, to screen out production defects. Edge computing is deployed to host machine vision applications, with all data processing on-site at the production facility.
Energy & Utilities
Smart Mining
China’s leading telecom operator, and Yangquan Coal Group successfully built the first 5G underground coal mine network in China, which at 534 meters below the surface is also the deepest underground 5G network in China. With the help of this “super Gigabit uplink” underground network, supporting a peak uplink rate of 1100mbps, the network enables high-definition audio and video communication, rapid data transmission and remote intelligent control of equipment. This network enables three 5G applications together supporting unmanned, automated, and remote visual operation of the coal mine including inspection of mechanical and electrical chambers, autonomous driving, and fully mechanized mining.
Transforming Open-pit mining
In China, 5G infrastructure manufactures have deployed 5G private network in surface/open pit mines to enable autonomous mining. These autonomous mines support use cases of Autonomous vehicles, Real time condition monitoring and Remote-controlled drilling rigs. Since mines are in remote locations and often span across large areas, network connectivity and availability become a challenge. With the 5G private networks, infrastructure have deployed autonomous mining use cases which have helped mining companies improve overall cost and production efficiency and ensured high return on investment.
5G Virtual Networks in Middle East
Operators in the middle east have been one the fastest to roll out commercial 5G networks. The UAE’s Telecommunications Regulatory Authority (TRA) began its preparations in March 2018 by allocating 200 MHz of the frequency spectrum to operators to deploy 5G services. The efforts put in by the regional carrier Etisalat, the same year in May, UAE became the first country in the Middle East to launch 5G commercially. The regulatory authorities in the Middle East and operators and technology providers are building an eco-system to further develop the 5G infrastructure and deploy use cases supporting various industries. 5G continue to remain a priority for the region, given the massive economic benefits to brings to the table. The adoption of 5G Virtual Networks have quickly picked up pace in the region and is no longer in its infancy. MNOs are offering 5G URLL and eMBB based services, enabling industry use cases, such as VR/AR-enabled inspection, AI support video surveillance, PPE compliant and abnormality inspection, etc. The region has already witnessed the dynamic adoption of 5G Virtual Networks.
Current Adoption Trends and Challenges
In a recent study conducted by a leading global technology provider, close to 61% of surveyed companies plan to invest in 5G enabled private networks to transform business using emerging technologies. Additionally, national agendas in some major middle eastern countries like UAE and Saudi are focusing on connected cars, smart grids, and smart logistics. This will further drive the adoption of 5G Virtual Networks in the coming years. Although it is still small, the region demonstrates use cases of 5G private networks starting to take shape.
5G Private Networks in Oil & Gas
Saudi ARAMCO and a leading local telecom operator and a 5G infrastructure provider, have signed a Memorandum of Understanding (MoU) to launch a Joint Innovation Program for 5G Technology Utilization in the Oil & Gas Industry. As part of this initiative, the parties will jointly analyze the application scenarios and requirements of 5G in the oil and gas industry to develop and promote relevant, innovative solutions. Also, as part of the initiative, the parties are deploying an industry 5G virtual network with key technologies such as E2E 5G slicing, Multi-access Edge Computing, and Massive IoT. The virtual network enables many use cases in Aramco’s upstream, middle and downstream production services, such as 3D augmented reality and remote collaboration, smart video surveillance, intelligent security management, machine vision, drone and robot applications, which would help fuel the digitization of the oil & gas industry.
UAE’s leading Oil & Gas player ADNOC is working with a major telecom operator in the country to test and deploy industry-specific use cases such as Pipeline Leak Detection Systems, Telemetry, Robots/Drones, Virtual/Augmented Reality, Video Surveillance with Artificial Intelligence (AI) features.
Launch of industrial private 5G slicing
Digital DEWA, the digital arm of Dubai Electricity and Water Authority (DEWA), and one of UAE’s leading telecom operators have partnered to launch the region’s first Industrial private 5G slicing through 5G stand-alone (SA) technology. InfraX, Digital DEWA’s ICT services subsidiary, will offer private 5G slicing driven via edge computing, which will enable DEWA to enhance efficiency through a dedicated, secured, and state of the art network.
5G Private Networks enabling smart ports
In Oman, the leading integrated telecom operator and one of the leading 5G equipment providers have completed a 5G Pilot for Hutchison ports. The pilot intends to outline the roadmap to transform the port into the regions first fully automated port with many smart use cases, such as real-time surveillance of many parts of the port’s operations, such as white/blacklist recognition, intrusion detection/loitering, crowd density and 4K monitoring. Other benefits include leveraging AI for HSE compliance and meeting future cost optimization goals.
Transformation in Banking driven by Private Networks
Leveraging 5G networks, Kuwait’s’ NBK bank has launched a mobile bank branch which allows its customers to talk directly to an NBK Agent using audio and video conferencing to conduct transactions like issuing a debit card, depositing or cashing a check.
Leveraging 5G Networks for Education
Under the direction of The Ministry of Education (MoE) in Kuwait, Education institutes are leveraging 5G infrastructure deliver innovative education services such as immersive learning using AR/VR and online classes to students pursuing distance education.
Road Forward
Although there are considerable efforts by eco-system players to boost the adoption of virtualized private 5G networks, the regional enterprises’ uptake is slow due to the following reasons:
Lack of awareness: Although there is an interest in adopting 5G services, enterprises in the region are not fully aware of the advantages of virtualized private 5G networks. Eco-system players like regulators, telecom operators and technology providers need to work together to demonstrate the value add of 5G Virtual Networks. The efficiency and saving brought by investments in advanced technologies could be a good starting point. As technology adoption increases, enterprises will see the need and benefits of investing in 5G Virtual Networks. Additionally, the eco-system players need to develop use cases in collaboration with enterprises.
Lack of IT Maturity: Several enterprises in the region are not ready to adopt 5G virtual networks as they are lagging behind in their digital transformation, IT maturity, need to adopt and deploy emerging technologies, which would require 5G networks. A strong C-level focus with a deep understanding of technology is necessary to bring about enterprise change. CIOs and technology leaders in an organization should take the lead to demonstrate the value and efficiency that virtualized private 5G networks can deliver.
High-Cost Perception: Enterprises have been unaware of the costs involved in adopting 5G Virtual Networks. This lack of awareness has led the organizations to perceive that the cost of the service is very high, thereby restricting them from further looking into the service. Operators and technology providers need to work together to provide cost-effective services to enterprises, which would accelerate the adoption of 5G Virtual Networks.
Despite the barriers seen in the region, there has been increasing demand from large enterprises. As leading organizations in the region adopt these services, we will quickly witness many enterprises who will follow their lead. Eco-system players need to help enterprises realize the value of virtualized 5G private networks, change the mindset, and embrace changes. The Middle East has always been a region with rapid and tremendous transformation. With the right mix of awareness, leadership and IT maturity, enterprises in all verticals will soon adopt 5G Virtual Networks to accelerate digital transformation in their business.
