Whatever Happened to the Vaunted Promises of Private 5G Networks?

Private 5G networks were once heralded as the future of enterprise connectivity, offering unprecedented flexibility, faster speeds, and freedom from the limitations of wired networks. Yet, despite optimistic forecasts, the widespread adoption of private 5G has encountered significant roadblocks. This begs the burning question—what exactly has held up this evolution?

A couple of years ago, an NTT Data study indicated that 90 percent of CIOs believed private 5G would become the new network standard, with more than half of companies planning to deploy such networks by the end of 2024. However, more recent estimates suggest a slower trajectory. A 2024 report from RCR Wireless estimated spending on private 4G and 5G networks would grow from $2 billion to $7 billion annually by 2028, with about 18,000 private networks in place. As it turns out, deployment has been far more sluggish than anticipated.

The reasons behind this delay boil down to three critical challenges: securing limited radio spectrum rights, identifying and attracting technical talent, and understanding when private 5G makes financial and operational sense compared with alternatives such as 4G LTE or network slices from carriers.

Spectrum Ain’t Cheap, So Who’s Going to Pay?

One of the first and most daunting obstacles for private 5G deployment is acquiring the necessary radio spectrum. In the U.S., operators often pay a premium for these rights, and to recoup those costs, some are willing to let private enterprises lease portions of their spectrum. Alternatively, enterprises can pursue a government license or use the Citizens Broadband Radio Service (CBRS), a lightly licensed spectrum option suitable for private 5G.

However, for large enterprises such as manufacturers and utilities, navigating the regulatory compliance involved in spectrum licensing can be time-consuming and complex. After obtaining the rights, setting up network equipment while avoiding interference presents yet another technical hurdle. Given the current shortage of skilled network engineers, this process can cause significant delays and complications.

Skills Gap Hinders Network Construction and Cybersecurity

Unlike previous generations of wireless networks, 5G requires a denser infrastructure, complex coverage mapping, and sophisticated orchestration—all of which demand specialized expertise. Unfortunately, the telecom industry continues to face a serious skills gap, particularly in areas such as network construction and cybersecurity.

To address this, companies considering private 5G deployments may want to consider turning to external partners. Systems integrators, preferred service providers, or even nontraditional cloud providers can offer network-as-a-service (NaaS) solutions, managing setup and maintenance more cost-effectively than an in-house team might. These firms often bring the advantage of experience, leveraging the latest automation technologies to optimize network performance and prevent service disruptions.

Determining the Best Network Option

Before diving into a private 5G investment, enterprises must carefully assess whether it’s truly the best option for their needs. Private 5G networks promise impressive capabilities, but their complexity can overwhelm traditional IT teams. If an organization’s connectivity requirements don’t involve ultra-low latency or massive bandwidth, private 4G LTE or even Wi-Fi 6 could be sufficient and more economical alternatives.
Another compelling option is using a 5G network slice from a carrier. These dedicated portions of a carrier’s 5G network can deliver many of the same benefits as a private 5G setup, such as low latency and tailored service-level agreements (SLAs). For many businesses, this approach offers a more cost-effective, lower-maintenance solution than building a private network from the ground up.

Still, for organizations that prioritize the highest levels of privacy and security—such as those in the military, healthcare, or industrial sectors—private 5G remains a clear step up. Its robust 256-bit encryption and superior access controls make it a compelling choice for applications where sensitive data protection is non-negotiable.

The Road Ahead

Although private 5G adoption has been slower than some experts predicted, its promise remains strong. By understanding and addressing the challenges of spectrum access, technical expertise, and cost-benefit analysis, enterprises can make informed decisions about their next-generation connectivity strategies. Whether opting for a private 5G network, a carrier slice, or an alternative connectivity solution, careful planning will ensure that businesses are ready to harness the benefits of this transformative technology.

Learn more about private 5G networks for the enterprise.