Private 5G is a hot commodity. Why aren’t telcos seizing the opportunity?

5G delivers increased mobility, performance and security – so why aren’t telcos doing more to capitalise on these capabilities in the private sector? We break down the essentials of private 5G, and how telcos can seize the initiative.

For enterprises seeking more control, reliability and security for their wireless infrastructure – from manufacturing floors to smart campuses and remote mining operations – private 5G networks are redefining what connectivity means in complex business environments.

A private 5G network uses the same core technology but operates independently of public 5G networks. It is designed, deployed and managed specifically for a single organisation or location, such as a factory, port, hospital or corporate campus.

It’s long been expected that private networks will be the driving force behind 5G success; whilst public 5G adoption has faltered, sales of private 5G jumped unexpectedly by over 40% in 2024, in defiance of a general downturn in RAN revenues.

However, CSPs are not the main players in the private network space, despite being uniquely positioned to lead this market. As one analyst put it: “The vendors, the non‑telco providers in the private network value chain, are outperforming where the operators are.”

These networks can be deployed in several ways depending on organisational needs and spectrum availability:

• Standalone (SA)
  Fully private networks with their own core infrastructure.
• Non-Standalone (NSA)
  Using public network infrastructure for certain functions but with local control.
• Hybrid
  Combining elements of both, allowing enterprises to shift workloads between public and private networks; 75% of enterprises now planning a private network prefer a hybrid model.

What makes private 5G different?

Unlike public networks that serve millions of users, private networks offer highly customised configurations, fine-tuned for the unique demands of each business.

Key attributes include:

Ultra-low latency
Private 5G networks can deliver latency as low as one millisecond, critical for real-time applications such as robotics, autonomous vehicles or remote surgery.

High bandwidth and speed
With data rates reaching up to 10Gbps in ideal conditions, private 5G supports high-definition video, augmented reality (AR), and large-scale IoT deployments.

Network slicing functionality
Network slicing can enable dedicated partitions on private networks, or allow private networks to run on public networks, offering users dedicated resources for different types of traffic.

Enhanced security
Because private networks are isolated from the public internet, they offer more robust security controls and better compliance with regulatory requirements.

Customisation and control
Enterprises can design network policies, prioritise traffic, and update configurations in real time, tailoring the network to their exact needs. Telcos can take this further, by offering modular deployment models that grow with the business – a clear differentiator against niche providers.

Why enterprises are buying in

• Operational efficiency
  Private 5G enables automation at scale, particularly in sectors like manufacturing and logistics. Connected sensors, autonomous vehicles and robotics can communicate with ultra-reliability and low latency, reducing downtime and optimising workflows.
• Ensures data privacy
  In industries such as healthcare, finance and defence, where data privacy is paramount, private 5G networks ensure that sensitive data remains secure, protected by strict access controls.
• Reduced downtime
  With complete control over the network, organisations are not dependent on public infrastructure, which may experience outages or congestion.
• Cost predictability
  Though initial deployment can be capital-intensive, private networks can reduce long-term operational costs by decreasing reliance on public carrier services and optimising bandwidth allocation. This cuts down on time spent maintaining costly legacy systems and, over time, reduces total annual network spend.

Private 5G in action: real-world use cases

Roadblocks to adoption

Despite its promise, private 5G comes with several key challenges:

• Cost
  Deploying a private 5G network, including spectrum, equipment and skilled personnel, can be expensive.
• Complexity
  Running a mobile network requires expertise in network engineering, security and regulatory compliance.
• Maturity
  While the technology is advancing quickly, private 5G hardware and software solutions are still evolving.

Even with forecasted growth, private 5G is expected to reach only about 13% of total 5G IoT connections by 2030. But the reality of the market today reveals a gap between this potential and current adoption trends. To overcome these barriers, many enterprises partner with System Integrators or managed service vendors to handle the setup and operations of the network.

How can telcos seize the opportunity?

• Spectrum ownership access
  Telcos already control vast swaths of spectrum, and by offering leasing models or shared-access arrangements, they can simplify deployment for businesses that want private networks without dealing with regulatory hurdles.
• End-to-end expertise
  Building a 5G network involves integration with cybersecurity frameworks and compliance processes. Telcos have decades of experience designing, deploying, and operating complex communication networks, making them ideal partners for enterprises navigating this transition.
• Managed services and SLAs
  Most enterprises prefer predictable service models rather than running networks in-house. Telcos can provide managed private networks backed by service-level agreements (SLAs) that guarantee uptime, latency and performance.
• Ecosystem partnerships
  Telcos are already collaborating with technology vendors, equipment manufacturers and cloud providers. By combining private 5G with edge computing, IoT platforms and AI-driven analytics, telcos can deliver integrated solutions that extend beyond connectivity.

While enterprises can, in theory, build and operate their own networks, most organisations lack the spectrum licences, engineering expertise, and the operational know-how required to manage 5G infrastructure at scale. This creates a natural opportunity for telcos to step in as the primary enablers of private 5G.

Furthermore, the real opportunity lies not just in deploying private networks, but in monetising them effectively. By moving up the stack into enterprise solutions and value-added services, operators can evolve from being pure connectivity providers to higher value strategic business partners.

Private 5G networks offer organisations the opportunity to build a wireless environment that is fast, secure, and highly adaptable. Whether it's streamlining operations in a smart factory or ensuring real-time communications in a hospital, the long-term benefits make private 5G a critical business differentiator for modern telcos.

Cerillion’s BSS/OSS suite is fully equipped to help telcos monetise the private 5G opportunity. Speak to one of our consultants today to find out more.