Enterprise Digitization Requires More Than Just Private Networks

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By Leo Gergs | 1Q 2022 | IN-6427

 

Interest in Private Cellular is Fading

NEWS


While the telecom industry is gearing up towards the Mobile World Congress (MWC) of 2022 in Barcelona, within enterprise implementers the initial hype around private networks is vanishing as the discussion about enterprise digitization matures. Perfect examples of this are the recent announcements of vertical-specific players like Siemens and Bosch, who both announced their enterprise digitization platforms (SCALANCE and ctrlx Automation, respectively) that bring together cellular connectivity, with other enterprise technologies, such as industrial Wi-Fi, Bluetooth, ZIGBEE, or proprietary protocols. Furthermore, enterprise implementers continue to demand specific applications to build up their business case, rather than resting their hopes on private cellular as the only available technology.

There are two important questions arising from this for the telecom industry to prevent losing out on the enterprise business opportunity, which is needed to remain profitable, as consumer average revenue per user (ARPU) continues to decline: one, what are the underlying reasons for this …

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