Understanding 5G Private Networks in One Article

A private 5G network is a local area network (LAN) that uses 5G technology to create a private network with unified connectivity, optimized services, and secure communication methods within a specific area. Previously, the agency predicted that the global 5G private network market size will reach US$919.7 million in 2020, with a compound annual growth rate of 37.8% between 2020 and 2027. North America will dominate the 5G private network market with a share of 31.2%.

Private Network

In fact, the concept of private network has existed as early as the 2/3/4G era, and it is not unfamiliar to us. The so-called private network refers to a professional network that provides network signal coverage in a specific area and provides communication services to specific users.

In short, a private network is a dedicated network that provides network communication services to specific users. The main difference between a public network and a private network is that the public network serves the general public, while a private network serves specific objects.

Why build a 5G private network?

5G networks have three major characteristics: high bandwidth, low latency, and multiple access points, but in many cases, enterprises do not need these business features at the same time. In addition, some enterprises hope to gain full control over 5G networks, high reliability, security, privacy, etc., and the public network cannot fully meet these specific needs.

5G private networks provide enterprises with the freedom to customize their networks, and can provide different configurations based on the location of use and type of work, with obvious advantages in terms of privacy and security.

5G Private Network Requirements

• High availability: means that users can always use the network service, ensuring maximum availability.
• Reliability: refers to the ability to transmit a certain amount of services with high reliability within a predetermined duration, which requires sufficient network coverage and capacity, as well as powerful service switching capabilities.
• Intercommunication: Intercommunication with the public network is an important function. For example, when critical services such as medical ambulances migrate from one network to another (for example, from a private network to a public network), service continuity is required, which requires a certain degree of integration between networks.
• Quality of Service: QoS includes throughput, latency, jitter, packet loss rate, etc., which can be better controlled by running a dedicated network on a dedicated spectrum. In addition, the system performance and resource usage of different services can be tailored to specific needs in a dedicated network deployment.
• Security: Private networks are expected to provide comprehensive end-to-end security to ensure that information, infrastructure and personnel are protected from threats. Private networks can protect critical assets using network isolation, data protection and device/user authentication, and enterprises can also control the retention of data sovereignty to ensure that sensitive information remains local.

WIFI 6, LTE Private Network and 5G Private Network

Wi-Fi is faster, easier and cheaper to deploy than dedicated cellular networks, and dedicated Wi-Fi networks are already being used in factories, usually for non-critical applications.

Before having a full 5G industrial network, some companies may use private LTE networks as a transition. LTE has greater coverage and mobility than fixed Ethernet or Wi-Fi and is often the technology of choice for connectivity in industrial environments.

For example, Yangshan Port, the world's largest automated terminal, has built an industrial wireless network based on 5.8GHz LTE. "There will be no more people in the area, and it will be fully automated. Not only will the quay crane no longer need to be driven, it can be operated in the background, and even container trucks are no longer needed. Goods will be directly loaded and transported by automatically operated AGV carts." Ocado in the UK has also deployed a private LTE network to control 1,000 fast-moving robots in the logistics center to process orders online. Nokia uses a private LTE network (4.9G) to enable base station operators to realize factory automation services.

The following figure shows the comparison between Wi-Fi 6, LTE private network and 5G in terms of reliability, scenarios, speed, etc.:

Seven deployment solutions for 5G private networks

Currently, there are seven major deployment solutions for 5G private networks:

1. Enterprises build their own 5G private networks (local 5G frequency bands, completely private, not shared)

The first deployment solution is that enterprises deploy a full set of 5G networks (gNB, UPF, 5GC CP, UDM, MEC) based on private network frequency bands. The spectrum used here is private 5G spectrum, not the operator's authorized spectrum. The 5G private network built by the enterprise has high privacy and security, ultra-low latency, and independent controllability.

However, the cost of deploying self-built private networks is high. Ordinary enterprises, especially small enterprises, cannot afford the cost of purchasing and deploying a full set of 5G networks. In addition, some professional operation and maintenance personnel will be needed to maintain the network in the later stage.

2. Operators help enterprises build 5G private networks (based on the operator's 5G frequency band, completely private and not shared)

This dedicated 5G network architecture is similar to the deployment method of the first solution. The only difference is that the operator-licensed 5G frequency band is used to build and operate the 5G private network.

3. RAN sharing between public and private networks

Only 5G base stations (gNB) are shared between private networks and public networks (RAN sharing), while UPF, 5GC CP, UDM and MEC are deployed in the enterprise and physically isolated from the public network.

Data traffic belonging to the private network is transmitted to the private network UPF in the enterprise, and data traffic belonging to the public network is delivered to the UPF of the operator's edge cloud. In other words, private network traffic controlled by internal devices is retained only in the enterprise, while public network service traffic such as voice and Internet is transmitted to the operator's network.

4. RAN and control plane sharing between public and private networks

The private network and the public network share 5G base stations (gNB) and 5GC CP, UDM (RAN and control plane sharing), and the dedicated UPF and MEC are built into the enterprise. The gNB and UPF of the enterprise private network are connected to the operator's network through the N2 and N4 interfaces and managed by it. Compared with the previous deployment schemes, the device information of the enterprise private network is stored in the operator's server instead of within the enterprise, so it is slightly weaker in terms of privacy.

5. RAN and core sharing between public and private networks (end-to-end network slicing)

The private network and the public network share UDM, 5GC CP, UPF, MEC and 5G base stations, which is end-to-end network slicing. The security of user information and data traffic depends on the network slicing capabilities, but compared with the previous solutions, this architecture has the lowest cost.

6. N3 LBO (Local Breakout): Case of SK Telecom in South Korea

The enterprise introduced the MEC data plane and MEC applications, and the operator's mobile edge platform (MEP) sent traffic rules to the MEC DP through the Mp2 interface. The MEC DP checks the destination IP address (GTP Decap) of the data packets from all GTP tunnels of the gNB and routes the user IP packets to the internal private network.

Unlike options 3 and 4, the cost of building a dedicated 5G network can be greatly reduced by adding a low-cost MEC DP (actually an SDN/P4 switch) without the need to purchase expensive UPF equipment.

7. F1 LBO (Local Breakout): South Korea’s KT case

Same as Solution 6, except that only RU/DU in the enterprise is deployed, and CU is placed in the edge cloud of the mobile network, and private network traffic is locally disconnected from the F1 interface instead of the N3 interface.

Finally, the above-mentioned 5G private network architectures each have their own advantages and disadvantages. No single architecture is suitable for all situations. Enterprises should choose the most suitable architecture based on their own requirements and implementation/operation budget.

challenge

1. Spectrum issues

Building a private network is not an easy task. Network slicing is still in the development stage. The key issue facing other 5G private network deployment methods is spectrum acquisition. Spectrum resources are limited and not available on demand. In most countries, spectrum is regarded as a natural resource and its use is controlled by national authorities, which allocate resources according to national needs.

When dedicated spectrum is difficult to obtain, shared spectrum and unlicensed spectrum are also good ways to establish private networks. More and more operators are beginning to invest in unlicensed and shared spectrum resources. Shared spectrum is a "lightly authorized" spectrum use method. Regulatory agencies in some countries will introduce some shared spectrum use systems, and industry users can use shared spectrum to deploy their private networks. Unlicensed spectrum is a public resource that can be accessed by enterprises and organizations fairly, so more sophisticated spectrum planning technology is needed to reduce mutual interference.

2. National policies

In order to deploy private networks on a large scale, in addition to the continuous development of spectrum technology, it also requires national support. Currently, some countries are considering opening up more spectrum resources and providing policy guarantees to enable the rapid development of 5G private networks.

USA

The U.S. Federal Communications Commission (FCC) plans to start the CBRS 3.5GHz spectrum auction in June 2020, and expects to start another C-band auction in December 2020. CBRS will provide new opportunities for enterprises to deploy 4G and 5G private networks.

Germany

Germany's telecom regulator BNetzA has reserved 100MHz of spectrum in the 3700MHz-3800MHz band for private companies. Dozens of companies have already purchased 5G private licenses, including Bosch, BMW, BASF, Lufthansa, Siemens and Volkswagen.

U.K.

In the UK, OFCOM published a consultation in 2019 on a draft statutory instrument that will support its local spectrum access and spectrum sharing policy. The regulator will dedicate the 3.8-4.2 GHz band to local deployments, requiring national operators to hand over unused licensed spectrum to businesses. The lower 26 GHz band will also be reserved for private and shared access.

domestic

Wang Zhiqin, deputy director of the China Academy of Information and Communications Technology, said that China has an inclusive and cautious attitude towards 5G private networks and frequencies. In the early stages of 5G, industry applications are not very widespread, private networks are relatively scattered, the requirements for industrial chain aggregation are very high, and the prices of dedicated equipment and terminals are relatively high. "It may be difficult to allocate 5G spectrum to a single industry. On the one hand, we are actively exploring the model of the industry, and on the other hand, we are actively studying whether 5G industry applications really need separate dedicated frequencies, including necessity, feasibility and specific models."

Recently, the Guangdong Provincial Department of Industry and Information Technology issued a notice on "Several Policy Measures on Coping with the Impact of the Epidemic and Further Promoting Information Services and Consumption". The Guangdong Provincial Department of Industry and Information Technology, together with 9 provincial departments including the Communications Administration, proposed to apply to the state for the construction of more than 10 5G private networks in the 1.4G dedicated frequency band, and explore 5G private network pilot applications and 5G private network equipment research and development in multiple key areas.

Deployment Case

By the end of 2020, more than 100 companies around the world will begin testing 5G private network deployments, and in the next few years, spending on 5G private network deployments will rise sharply, potentially totaling tens of billions of dollars each year.

On May 15, the 5G smart campus private network jointly built by Alibaba and China Mobile was officially put into use. Based on the 5G network deployed by Hangzhou Mobile, XG Lab has developed a new 5G private network security architecture system, which greatly improves the security and usability of the 5G private network. This architecture design will also be submitted to 3GPP as a proposal and may become part of the 5G R17 global standard in the future.

According to Alibaba, the XG Lab of the DAMO Academy has innovatively connected 5G authentication information with enterprise authentication information through self-developed EAC (Enterprise Access Controller) based on the 5G core network, and built a secure, intelligent, and flexibly expandable 5G enterprise private network. In this 5G private network environment, employees can directly access the intranet through authorized mobile terminals when entering the park, and automatically switch to the public network after leaving the park, completing the safe and smooth switching between the public network and the private network. Network management departments can also perform intelligent management of 5G terminals through platforms such as DingTalk.

Qingdao 5G Smart Grid

On July 11, 2020, China Telecom announced that the first phase of the Qingdao 5G smart grid project jointly developed by State Grid Qingdao Power Supply Company, China Telecom Qingdao Branch and Huawei was officially delivered and put into operation, marking the official completion of the largest 5G smart grid in China.

Power grid applications provide faster, finer, and more accurate differentiated and deterministic network capabilities, and realize new applications such as intelligent distributed power distribution based on 5G SA slicing, substation operation monitoring and power grid situation awareness, and 5G base station peak-shaving and valley-filling power supply. Staff use 5G+4K ultra-high-definition cameras on power towers to monitor transmission lines and distribution facilities, which can promptly detect potential faults and save 80% of on-site inspection manpower and material resources. With the ultra-low latency and ultra-high reliability of 5G, it is also possible to quickly locate, isolate, and restore power grid line faults, shortening power outage time from minutes to seconds or even milliseconds.

Fujitsu launches Japan's first commercial 5G private network

Japan calls the 5G private network independently built by enterprises "Local 5G" and promotes the dual-track development strategy of "5G public network + Local 5G".

In March 2020, Fujitsu obtained Japan's first commercial dedicated 5G broadcasting station license from the Kanto Telecommunications Bureau. It will enhance crime prevention measures by utilizing its 5G private network technology to transmit data from high-definition images collected by multi-point cameras, enhance AI security systems, and quickly detect suspicious behavior through motion analysis.

Fujitsu's 5G private network is deployed in the New Kawasaki Technology Plaza, covering an area of ​​28,000 square meters. It is reported that the initial application of the 5G private network is 5G smart security, which is to upload ultra-high-definition video streams collected by multiple cameras through the 5G network and detect suspicious behaviors through AI analysis to ensure the safety of the park.

China Southern Power Grid

China Mobile cooperates with China Southern Power Grid to provide a systematic 5G command grid solution based on 5G SA architecture and slicing technology for four business characteristics of Shenzhen Southern Power Grid's business, including intelligent distributed distribution automation (intelligent distributed distribution network differential protection and distribution network automation three remote controls), power grid emergency communication guarantee and distribution network metering. This case aims to explore 5G innovative services and needs for vertical industries, verify the capabilities of 5G networks and services, and lay the foundation for 5G commercial use.

Haier 5G+MEC Virtual Private Network

Haier has implemented MEC (UPF+MEP) in its headquarters park based on the operator's 5G network, and built the industry's first "5G+MEC" virtual private network. Based on the 5G+MEC virtual private network infrastructure, Haier has enabled the application of three interconnected factories in the Sino-German Park: refrigerators, drums, and central air conditioners. This solution achieves lightweight equipment. Only industrial cameras are retained at the production line machine vision application points, and separate industrial computers are eliminated. MEC is uniformly deployed in factories or parks. The overall solution reduces wiring costs, hardware and computing power waste, and reduces overall investment costs by about 40%. It has been online for nearly half a year.

The industry has always placed high hopes on 5G private networks. Although there are certain challenges in the development process, with the continuous improvement of technology, the number of private network deployments has also begun to increase. A report recently released by ABI Research shows that by 2036, global 5G private network spending will exceed 5G public networks. By then, how will the market landscape change?