A “5G campus network” is a locally limited and customized mobile network designed to meet specific requirements.
Typically, this network covers individual buildings or a corporate campus. As mobile frequencies are partially or fully available to the customer, they can leverage a high data rate for applications. The proximity to the customer’s IT infrastructure also reduces transportation distances, leading to improved latencies and, therefore, improved response times. Deployed machines can communicate with data centers in near real-time. This is particularly crucial for future 5G applications in the field of machine control and monitoring, applications in the field of AR and VR, as well as autonomous vehicles on the corporate campus.
Virtual campus networks consist of virtual subnetworks that provide the customer with specific performance parameters, such as a predefined and fixed bandwidth. These networks can be set up and operated quickly and cost-effectively. However, the available performance parameters of virtual campus networks are reduced because the physical infrastructure of the public mobile network has to be shared with other network participants.
In hybrid or private networks, the customer can partially or exclusively use the infrastructure. Wireless connectivity with fiber-optic cable performance is even possible. While hybrid campus networks connect to the public core network, private campus networks are entirely isolated, increasing data security and the availability of specific performance requirements of 5G applications.
In Germany, companies can have their own 5G industrial frequencies allocated, which has a significant impact on the provider structure.
The availability and licensing of the frequencies released for the operation of campus networks varies within the European Union. While the necessary frequency has to be negotiated with the local mobile network operators in almost all European countries, the UK and Germany allow companies and organizations to apply for their own 5G frequency – in Germany, with the Federal Network Agency (BNetzA), which is independent of network operators and significantly alters the provider structure in the German market:
- More than 40 providers of 5G campus networks, with only 3 being mobile network operators
- 48% of the providers employ fewer than 250 employees
- 28% of the providers have a background in the IT industry, 25% are active in the radio and fixed network sector, and 25% are involved in communication technology
The market for 5G campus networks is currently in the growth stage, and the development of 5G applications has begun.
According to Bitkom1, 26 percent of German industrial companies intend to establish a 5G campus network. The demand is far from saturated, as indicated by our analysis of frequency applications received by the BNetzA:
- A total of 343 frequency usage applications have been submitted to the BNetzA, of which 341 applications have been approved (as of August 2023)
- Among the 158 frequency holders published by the BNetzA, 45 are research institutes and universities
- 24 frequency holders are 5G campus network providers
- The majority of frequency holders from the industry are from the logistics, automotive, and IT sectors
Companies and organizations from the research and development field are disproportionately represented among the allocation holders. The system technology of 5G campus networks, as well as future 5G applications, are currently being tested. Therefore, it can be concluded that many industrial companies are waiting for the development of 5G applications, as well as frequency-capable hardware and user equipment, before deciding to establish a 5G campus network.
BearingPoint provides tailored support to telecommunications and industrial companies in selecting and implementing campus networks. With our innovative Quick Assessment, we assist you in making the right decisions. Benefit from our extensive experience as we fulfill your specific requirements together. Learn more about how we can help you!
Sylvain Chevallier, Partner at BearingPoint
