Will private networks conquer the communications market?

by time news

cellular antenna. Illustration | Photo: shutterstock

Aaron Suissa

Business TEC

The Ministry of Communications publishes today (Wednesday) a call for proposals in the field of private networks in order to receive the market and company’s references relevant to the field. Against the background of the development of LTE and Generation 5 cellular technologies, an increase in demand for private networks and their benefits, and a decrease in the costs of setting up a private network, the ministry expects that the field of private networks will develop extensively.

The publication of the call for proposals is intended to receive references that will help the firm examine the unique needs of the companies and ventures that are expected to participate in the private network market, including examining different perceptions regarding the regulation of this market. Therefore, in order to provide a regulatory solution in this area, the firm seeks reference from future companies and ventures to take part in the future market.

Private networks have become one of the most promising growth industries in the telecom industry, according to a report by the GSA (Global Cellular Carriers Association). Many companies and organizations are investing in experiments and launches of 4th and 5th generation private networks. Germany, the United Kingdom, Japan, and the Scandinavian countries are examples of countries where quite a few commercial generation networks have already been deployed in the 5th generation. , Airports, manufacturing plants, and logistics warehouses.

There are business, technological and economic reasons in light of which ventures, businesses and various industries will prefer to retire an independent private network. According to the ITU organization the possibility of serving sectors with unique needs will lead to the entry into the market of new players of different types. Among them: smart city operators, community networks and micro-operators (campus operators) – most of them will operate private networks. The firm can have an influence on the model chosen by the players described, for example the firm’s decision to allocate the spectrum to the new market (whether through a dedicated, regional or collaborative spectrum or based on the existing spectrum of public networks).

The Ministry of Communications anticipates that the development of private networks in Israel will have a positive competitive effect that will encourage the entry of new players into the market, and give growth potential to companies that operate a commercial network. After receiving the references, the firm will formulate the most appropriate regulatory response to the private network market.

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