Understanding Private 4G/5G Networks for IoT

In the early days of IoT, networks didn’t need to move much data. Just a few kilobytes were enough for machine-to-machine communication around the turn of the millennium. In other words, IoT began with low-capability devices and minimal connectivity needs. 

That’s no longer the case. Today, smart security cameras send video streams through the network. Self-driving vehicles transmit HD images to processing centers. Entire companies collaborate through video conferencing platforms, gobbling bandwidth with high-definition video and audio simultaneously. 

Cellular technology is simultaneously responding to and driving this growing need. A 5G network can get download speeds of up to 10 gigabits per second (Gbps). That’s enough data to transmit a 4K movie in under 30 seconds.

While 4G/LTE networks aren’t as fast as 5G connections, they can still download up to 20 megabits per second (Mbps), far more than you’d need for typical machine-to-machine communication.

If you plan to deploy high-capability connected devices—telematics systems, automated factory equipment, smart city infrastructure, and more—these cellular technologies have a lot of advantages. However public cellular networks also come with limitations.

Sharing the bandwidth can lead to congestion, a serious problem for critical IoT systems. Then there’s the issue of cost: monthly data rates for a public 5G network can obliterate your ROI.    

So how do you benefit from advanced cellular technologies without the drawbacks? Private 4G/5G networks, depending on the use case, are the answer.

What is a Private 4G/5G Network? 

We have to define two terms before we can proceed: 4G and 5G.

The fourth generation of broadband cellular technology, 4G, was designed primarily for a consumer market. It’s optimized for consuming content, with high download speeds and relatively limited upload capabilities. 

The fifth generation—5G—was designed for IoT as well as consumer applications. It supports networking techniques like beamforming and network slicing that allow millions of connected devices to function without network collapse. It also gives more equal weight to both upload and download traffic, so connected devices can send and receive data effectively. 

Depending on the IoT use case, either one of these technologies may be beneficial. That’s why we’re discussing “private 4G/5G networks” as a whole. And within this category, the most important factor is that these networks are private. 

That means it’s a closed system, not accessible to those without authorization. A public 5G network, on the other hand, has to juggle traffic from anyone who pays for access. In that sense, a private cellular network is closer to a WiFi network or LoRaWAN—but with some key advantages over either of these technologies.

How Do Private Cellular Networks Work? 

The technology behind a private 5G network is a lot like that of its public counterpart, with the important distinction that you—the owner—control access.

Such a private network can be boiled down to three essential components: 

• Small cell radio equipment (LTE eNodeB or 5G gNodeB). These base stations aggregate device data and send it to the next architectural layer.

• The cellular core. This is the software bundle that includes a user database, security protocols, operations support systems/business support systems (OSS/BSS), and self-service management platforms. It’s most cost-effective to find a connectivity partner that offers a cloud-based cellular core, as part of a broader connectivity-as-a-service private 4G/5G network offering. 

• Compatible SIM cards. The SIM connects your devices to the network, providing a private network profile and connecting with the cellular modem.

In addition to these essential components, you may also include edge computing modules, which process data at or near the point of collection.

That’s the hardware side of things. You also need to choose a radio spectrum that matches your data needs. That could be: 

• Licensed spectrum. Regulators have allocated some frequencies from the licensed spectrum for private networks, giving you similar functionality to a public LTE network, but with private access.

• Unlicensed spectrum. You may know the unlicensed spectrum from the LoRaWAN model. Newer communications standards like LTE-Unlicensed (LTE-U) allow you to build private cellular networks in this bandwidth range, too.

• Shared spectrum. Many IoT deployments will get the most value from a private network on LTE Band 48, otherwise known as the Citizens Broadband Radio Service (CBRS). You can build LTE-U or 5G networks on CBRS, all with long ranges and high device volumes.

If all this sounds complicated, that’s because it is. You can certainly confront the complexity and build a private network yourself, running your own cellular core on-premises. 

The quicker, more cost-effective option, however, is to work with a connectivity partner that offers private LTE/5G solutions—up to and including a cloud-based cellular core. 

What are the Advantages of Private 4G/5G Networks? 

There are a few reasons you might prefer a private cellular network over WiFi, LoRa, or public mobile options. A private network offers the following advantages: 

• Guaranteed service level agreements (SLAs). Public networks can’t always uphold an SLA that guarantees performance. A private network can. Say you need a smart camera to transmit in four megabits per second every time, no matter what. You can build that into your private network SLA and trust the performance, because there’s no competing traffic.

• Stronger security and control. You control access to your network. That makes it much more secure than public 4G or 5G. Cellular technology also runs encryption on the radio, which makes it more secure than a WiFi network.

• Customizability to specific business needs. Need mobility? A private 4G or 5G network has you covered. How about device management, billing flexibility, or domain white/blacklisting? That’s all available through your cloud-based OSS/BSS. You can even use network slicing to strengthen critical IoT performance. In short, full control over your private network lets you build the system you need.

• Lower latency and higher bandwidth. A private 5G network can achieve sub-five-millisecond latency. That’s fast enough for the precision performance you need in a connected car or automated factory equipment. And we’ve already discussed the high bandwidth capabilities of 5G technology (and 4G is no slouch, either.)

• Lower lifetime operating costs. You will certainly bear higher set-up costs for a private network. But once you build the infrastructure, you save on monthly data costs. That creates a strong ROI faster than you might think—and definitely costs a lot less over the lifetime of your network.

All this leads up to our next question: Is a private 4G or 5G network right for your next IoT project? 

Who Benefits the Most from Private 4G/5G Networks? 

Any business that needs high capability, strong security, low latency, and dependable connectivity should consider a private cellular network. 

We’ve seen private LTE and 5G work for drone surveillance operators; connected cameras in smart city systems; autonomous warehouse vehicles; and Lidar equipment in the oil and gas industry. 

Other strong use cases for private networks include: 

• Industry 4.0. Smart factories often rely on automated mobile equipment, IoT integration for controlling production lines, and more.

• Logistics and transportation. You probably won’t build a private network that covers the entire geographic range of your fleet. Such a network would be ideal for data backhauling at the depot, however, and can support use cases like fleet management, asset tracking, and self-driving vehicles in smart cities.

• Energy and utilities. You can build a private cellular network that covers your whole building, campus, or city. Within that range, the network will reduce costs for smart grids, real-time monitoring, and maintenance of key utilities infrastructure.

• Healthcare. Telemedicine, remote surgery, and patient monitoring are critical applications. They must run on extremely reliable networks. A private LTE or 5G network provides this reliability. 

Of course, 4G and 5G aren’t the only networking technologies available.

How Do Private Cellular Networks Compare with the Alternatives? 

For most IoT use cases, you have three networking technologies in addition to private cellular networks. Here are each of the alternatives, along with a quick comparison with private 4G/5G networks.

WiFi Vs. Private 4G/5G Networks

With WiFi 6 and 7 on the way, some IoT operators are hopeful that the technology will come to dominate the field. The available WiFi spectrum is impressive at 1.9GHz (compared to private 5G’s 60MHz). Even though it’s a shared road, so to speak, the road is wide, and can be useful for some use cases.

That said, private 5G is faster than even the most advanced WiFi. Plus, both 4G and 5G are more efficient than WiFi. They manage density better, supporting up to 1 million connections per square kilometer. 

LPWAN Vs. Private 4G/5G Networks

Low power, wide area network protocols like LoRa use the unlicensed spectrum to build private communication systems. Compared to 4G or 5G, however, these LPWANs are limited in terms of network resources and security. They’re also more difficult to deploy across a large scale. That said, an LPWAN is often less expensive, initially, than a private cellular network. 

Public 4G/5G Vs. Private 4G/5G Networks

There are certainly strong use cases for public cellular networks. A private network probably won’t achieve the same long-distance coverage as a major mobile network operator (MNO), so MNO’s are great for things like asset tracking and shipping telemetry. 

However, public networks aren’t as reliable as their private counterparts. They also cost a lot more to use, given their monthly data rates. Ultimately, many mobile device deployments benefit from a combination of public and private networks. The public networks provide coverage during travel, while a private network offers reliable backhauling and updating back at the depot. 

What are the Downsides of a Private 4G/5G Network? 

Private networks do have higher upfront costs than many alternatives. You have to invest in the hardware. You need some technical expertise. 

It can also be challenging to integrate a new private network with your existing communications infrastructure. Finally, you must navigate the regulatory environment; compliance requires strong expertise, which can cost your operation time and money to acquire. 

What’s the Best Way to Build a Private 4G/5G Network? 

We’ve already covered a lot of ground. By now, you should know: 

• What a private 4G/5G network is.
  
• How private 4G and 5G networks work on a technical level.
  
• The benefits of a private 4G or 5G network. 
  
• Which industries and use cases stand to gain from a private cellular network.
  
• How private 4G/5G networks compare to WiFi, LPWAN, and public cell technology. 

In the near future, we expect private cellular networks to get more beneficial, not less. As 5G matures, network slicing will provide more flexibility and reliability for critical tasks. The costs of cellular modems should come down as LTE-U and other protocols allow a single modem to work with many network types. 

That just leaves us with one final question: If you think a private cellular network would benefit your next IoT deployment, how do you get started? 

Throughout this overview, we’ve hinted at a strong option to manage these challenges while gaining all the benefits of a private 4G or 5G network: Partner with a connectivity-as-a-service vendor that specializes in private 4G/5G networks. 

Look for software-defined connectivity that operates on a global cloud, all operated by a proven connectivity provider that specializes in private cellular networking. This approach gives you access to a private 4G or 5G network without the cost and complexity of a capital expenditure (CAPEX). In other words, don’t build a private network from scratch: start connecting your devices immediately with private cellular connectivity as a service.