The number of private LTE and 5G networks is rising globally, with revenues for private 5G network equipment expected to grow from $1.5 billion in 2021 to $19.3 billion in 2027. Asia will be a large part of that equation, with China thought to lead the way in the number of private wireless networks. It is unknown exactly how many LTE and 5G private networks are active in China. One report states, “China alone has hundreds of small-to-medium-scale private LTE networks. Predominantly supporting police forces, local authorities, power utilities, railways, metro systems, airports, and maritime ports, these networks extend from single-site systems through to city-wide networks”. Another reports “… the industry assumes there are several hundred private network deployments, but only 40 are fully publicly disclosed.”
China
The Chinese private network market has a more challenging task in fulfilling demand than many other countries. The Chinese Ministry of Industry and Information Technology (MIIT), which is in charge of allocating spectrum, only provides access to the three state-owned mobile network operators (MNOs): China Mobile, China Telecom, and China Unicom. There are no provisions for a shared spectrum usage such as CBRS in the US, or industrial spectrum, where frequency band usage is directly allocated to a specific company in a particular area, as is more prominently done in Europe and Japan. Chinese businesses have to work with the private network offerings of the three MNOs. Even with this restriction, one report says that the big three have “established more than 800 private networks by the end of 2020.”
China Unicom partnered with Nokia to build a private LTE network for German auto manufacturer BMW in Shenyang, China. It will initially provide low-latency support for smart manufacturing activities, later expanding to “…support secure voice and data communication between staff at the plant as well as machine-to-machine communication including wireless video monitoring, production line maintenance inspection, indoor navigation, industrial robots, and indoor navigation.”
China Mobile has dived into various industries with private networks, including mining, ports, and factories. China Mobile partnered with Huawei to deploy a private 5G network at the Shandong Gold Mine in Qingdao. Miners can work on the surface, using a real-time video link to operate and monitor transportation equipment and use mission-critical push-to-talk (PTT) and push-to-video (PTV) communications in an often-hazardous facility. The Shandong website reports that “…data sent on its new network reaches its destination in less than 20 milliseconds, compared with the 3 to 4 seconds it would have taken on 4G.“ This difference in time allows for improved control of equipment hundreds of feet down.
At the Shanghai Yangshan Port and Ningbo Port, China Mobile allied with Huawei to “…control RTG cranes aided by HD video” with a private 5G network. There are 60 cranes sending 1080p video, requiring 30 Mbps bandwidth.
China Mobile and Huawei teamed up to create a private 5G network for the Hunan Valin Iron and Steel Group at their manufacturing facility in the Hunan province. The company has used the network to explore new industrial applications, intending to implement services such as “…automated overhead cranes, slag-adding robots, high-density video surveillance, AR-assisted remote assembly, and AI-powered steel plate inspection.”
Japan
Japanese regulators allocated spectrum specifically for enterprise use in 2019, referred to as “local 5G.” Japan also uses the unlicensed LTE sXGP (Shared Extended Global Platform) with deployments already seen in “corporate campuses, golf courses, race tracks, stadiums, airports, and warehouses.”
In March 2020, Fujitsu was granted the first commercial private 5G license, with plans to install a network in their office building in Kawasaki City. They plan to create “…an AI-powered security system that quickly detects suspicious behavior through motion analysis,” using multi-point cameras. The network will run in the 28.2-28.3 GHz range.
Japanese service provider Optage is partnering with Samsung Electronics to install a private 5G network at a plant facility. The network will support 4K Ultra-HD live streaming from cameras throughout the facility, allowing site inspections to be performed from a remote facility. It is expected to “…eliminate the need for technician visits to inaccessible locations and allow early detection of failures, improving productivity, efficiency, and safety at the facility.”
A recent survey shows that 26% of Japanese firms plan to deploy a private 5G network within 6-24 months.
Korea
In Korea, the Korea Military Academy (KMA) is “…installing a dedicated 5G network in its northern Seoul campus to facilitate mixed reality-based military training programs – with a primary focus on shooting and tactical simulations.”
Korea is expected to allocate additional 5G spectrum in the 4.7 and 28 GHz bands in November 2021, allowing non-mobile operators as well as MNOs to bid, opening the door for a new branch of industrial private 5G networks. “To encourage uses of private 5G networks, the government will invest 127.9 billion won [~ USD 110M] this year [2021]. Public sectors, such as harbor facilities and the defense sector, will be the first to use private 5G networks and customized solutions.”
Elsewhere in Asia
In other Asian countries, the Royal Thai Police have installed a private LTE network in Bangkok, while Thailand’s MNO, dtac, has “announced the launch of its proof-of-concept 5G Private Network solution to unlock the full potential of 5G for Thai enterprises.” Taiwanese Quanta Computer has won bids for ten private network projects in Japan and Taiwan, while Taiwanese manufacturer Inventec, in collaboration with ASOCS, Affirmed Networks, and system integrator Wave-in communication installed Taiwan’s first 5G standalone network in Taoyuan on government-allocated industry spectrum. The initial “…goal is to significantly improve our factory efficiency and reduce manpower by implementing AI-based AOI (Automatic Optical Inspection) in the assembly line,” with plans to connect more devices, including “…an Automated Guided Vehicle (AGV) that autonomously moves and transports materials, and automated server product testing.” In Singapore, the Infocomm Media Development Authority (IMDA) awarded spectrum in the 3.5 GHz band to SingTel and a StarHub-M1 alliance. The two companies are expected to roll out services in the mmWave 26 and 28 GHz) bands as well.
Conclusion
China will continue to dominate the private wireless network market through its sheer size, installing many more networks than any other market. Companies from many other countries, led by NTT Docomo of Japan, are aligned in a group whose aim is to be “… a one-stop supplier of private 5G systems and related managed services, capitalising on the key features of the technology, and targeting vertical industries; including manufacturing and construction.”
