Private networks: a strategic pillar for digital transformation

Madrid, 11-10-2022.- Digitalization has increasingly become a key topic in the strategy of enterprises from all sectors world-wide, capturing a large share of their ICT investment. Within this evolution, the need for a more reliable and high-performance connectivity is now positioned in the focal point, making Private Networks a key pillar for this transformation process.

According to different analysts, the number of private networks worldwide will escalate from approximately 900 deployments in 2022 to nearly 15,000 just by 2026, considering 4G and 5G radio access technologies. The reasons for the accelerated demand of Private Networks from all sectors are three-fold:

• Technology maturity, more especially after the general availability of 5G Stand-Alone and its most relevant functionalities, together with other connectivity options like WiFi 6/7, for instance
• Increased awareness and investment of enterprises related to their digital transformation, now incorporating Private Networks as a key component in their digital strategy
• Ecosystem readiness advancement, including regulators, device manufacturers, system integrators and enterprises from all sectors, together with the specialized combination of technology and services expertise of operators like Telefonica, that are contributing to build the required use cases

“From Telefónica Global Solutions will continue to support companies around the world by providing them with complete private network services, facilitating the adoption of this key component of their digital transformation and harnessing the full potential of these technologies”.

Guillermo Quintana
Business Development Manager Telefónica Global Solutions

Private Networks provide enterprises with a differential platform for the deployment of advanced digital services that require best-in-class connectivity features, namely: Ubiquitous coverage in the deployment area; High data throughput and low latency; Data and connectivity security; Extensive number of connected devices; Adaptability to industry-specific use cases and Interference-free connections. Due to the complexity involved in the adoption of private network technologies, enterprises are increasingly relying – from the advisory and analysis stages to the deployment phase – on the support from Telecommunications operators, that can provide the best understanding of the eco-system and the ability to build industry-specific use cases, based on their wide expertise with mobile networks.

Telefonica has deployed 4G and 5G private networks in a diverse set of sectors, ranging from Industry / Manufacturing to Mining, Infrastructures, Logistics or Travel & Tourism, developing a variety of use cases related to Industry 4.0, AI, Autonomous Machinery, AR/VR-assisted operation, Security, Process Efficiency and Automation, among others.

From Telefónica Global Solutions, we are supporting our multinational customers in the Private Network introduction process. As an example, TGS has deployed a private network for one of the leading mining companies in Latin America, supporting the availability of LTE connectivity in a wide open-pit copper mining area previously lacking wireless access, and enabling the introduction of advanced mission-critical use cases like push-to-talk (PTT) and Autonomous Haulage Systems (AHS).

The unstoppable growth expected for these private networks is closely linked to the development of new technologies such as big data, cloud computing or artificial intelligence (AI). Therefore, the Internet of Things (IoT) in particular, as well as the growth of the transformation towards digitization have strongly benefited from the 5G network deployment. From Telefonica, we will continue supporting companies world-wide by providing them with full-fledged Private Network services, facilitating the adoption of this key component of their digital transformation and making use of the full potential of these technologies. As a Leader for the 8th consecutive year in Gartner’s Magic Quadrant for Managed IoT Connectivity Services, Telefonica’s expertise in this area is contributing for us to be the partner of choice for leading companies world-wide when introducing Private Networks.

Guillermo Quintana
Business Development Manager