Telit Communications Ltd.

11/07/2024 | Press release | Distributed by Public on 11/07/2024 08:32

Private 5G vs. Wi-Fi: Considerations for Enterprises

Modules

By Stefan Mahr

November 7, 2024

Estimated reading time: 10 minutes

The need for reliable and secure enterprise connectivity is evolving. Companies may often choose between a private 5G network or standard Wi-Fi. However, the choice isn't always straightforward.

The need for reliable and secure enterprise connectivity is evolving. Companies may often choose between a private 5G network or standard Wi-Fi. However, the choice isn't always straightforward.

These two technologies are not mutually exclusive and can complement each other. Enterprises often combine private networks for critical applications and public Wi -Fi for day-to-day business.

The network must become stronger and more scalable as connected devices and Internet of Things (IoT) applications increase. While both networks are becoming more flexible, they are also becoming more complex. Enterprises can select the best network technology for their needs once they understand the distinct advantages and shortcomings.

What Is Private 5G?

Private 5G is a nonpublic, dedicated wireless network using cellular 5G technology. Enterprises can manage the network themselves or leverage the expertise of telecom operators and vendors. An enterprise has full control over the data with consistentfiber-like speeds.

The enterprise space has historically belonged to Wi-Fi. However, needs have evolved with different use cases requiring special coverage and higher reliability and security.

Enterprises can benefit from private 5G's three most significant advantages for critical applications:

  1. Ultrahigh bandwidth supports multiple IoT devices and applications without compromising performance. You can transfer vast amounts of data for applications like real-time analytics and massive IoT deployments.
  2. Ultralow latency enables minimal delay in transmitting data. Having superior reliability is critical for time-sensitive applications.
  3. Enhanced security provides full control over the network infrastructure. Private 5G cellular networks inherit the same level of security for 5G deployments of Public Land Mobile Networks (PLMNs) defined by 3GPP. Plus, they have additional features for private network use cases like EAP-based authentication.

    SIM cards and end-to-end encryption add a robust layer of security. Private 5G also provides network slicing to isolate critical traffic and reduce attack surfaces because they are not publicly accessible like Wi-Fi.

These three enhancements alone outperform traditional Wi-Fi and other legacy networks. This is especially true for business- and mission-critical.

Additional Advantages of Private 5G for Enterprises

In addition to ultrahigh bandwidth, ultralow latency and enhanced security, private 5G offers other advantages for enterprises, including:

Total Control

Enterprises have total control over the entire private 5G infrastructure. They can modify the network to their specific requirements.

Private 5G and Customization

Customizing the network is a key benefit for enterprises. Organizations no longer must rely on public one-size-fits-all networks. They can modify and tailor the settings to the unique needs of each use case.

Outdoor Spaces

Private 5G offers superior range and performance compared to Wi-Fi. This technology is ideal for large outdoor areas, from distributed production locations to smart cities.

Remote Areas

5G enables automation and remote monitoring of equipment in areas that don't have public networks and require reliability. This technology can improve productivity and safety in places like mining sites.

Support for New IoT Applications with Private 5G

The possibilities are endless as new IoT applications keep popping up for different verticals. Connectivity enhancements drive applications and services that weren't possible before 5G, such as augmented and virtual reality.

Private 5G networks offer organizations the flexibility to innovate for various use cases. These networks can help enterprises scale and transform operations as the digital world evolves.

Examining Potential Hurdles of Private 5G

The advantages of private 5G networks are impressive. Still, the potential hurdles organizations may encounter are important to consider.

High Initial Cost

The initial 5G setup and installation may require a larger investment in infrastructure, including base stations and antennas. Integrating this technology into the existing environment is also something to consider, as it would add to the cost.

Smaller Scale

Private 5G networks do not always achieve the same large scale as public networks. 5G may not be fully available in certain areas. However, they can still benefit enterprises that have contained connectivity like manufacturing plants that require higher performance and security. In addition, the ability to switch between private and public 5G networks may be beneficial for some use cases.

Cost of Maintenance and Updates

Long-term maintenance and updates with future expansions can result in added costs and more resources.

Private 5G Networks Transform a Variety of Verticals

Private 5G supports a wide variety of verticals. As applications and devices develop, opportunities increase for different use cases across myriad verticals, such as:

Traditional public mobile network operators (MNOs) also operate private networks and offer them as a service. However, some new players can also manage and offer private network services, including:

  • Enterprise information technology (IT) departments
  • Neutral host network providers
  • Cable operators

This growing trend will continue with the latest evolution of market expansion.

What Is Wi-Fi?

Wi-Fi is a shared wireless technology. It uses radio waves to transmit data between your device and a router in your home office or a public hotspot. The router connects to the internet with a cable or fiber line.

This technology has the advantage of being adopted as the long-time standard. However, private 5G is gaining traction in many industries like health care. A hybrid approach is used when Wi-Fi performance is limited, and new applications and devices are lacking.

Over the last two decades, Wi-Fi has improved. Each generation brings faster speeds and lower latency. User experience has also improved when opening it up to more devices.

Wi-Fi 6, the next standard of Wi-Fi technology, has improved reliability and reduced latency. It allows network access points like routers to handle higher demand from devices while using less power. The technology supercharges routers, enabling them to multitask in ways that have not been possible before.

Enterprises typically use Wi-Fi for IT office and site services applications. Employee phones, and business- and mission-critical applications use private 5G.

Advantages of Standard Wi-Fi 6 and Beyond for Enterprises

Wi-Fi 6 and later offer smarter, more efficient IoT-enabled business operations for enterprises, including the following advantages:

Lower Initial Wi-Fi Costs vs. Private 5G

Wi-Fi 6 access points are typically less expensive than 5G base stations. Wi-Fi standards are license-free to save on costs.

Convenience and Mobility

Wi-Fi technology enables a wireless connection, eliminating the need for fixed cables and reducing clutter. It also allows devices to be mobile and available in settings like airports and other public locations.

Wi-Fi Supports More Devices

Wi-Fi 6 and newer can connect more devices at once, making communication easier on the same network.

Improved Connectivity with Wi-Fi 6 and Beyond

The latest standards provide faster connectivity and lower latency than older versions of Wi-Fi and improve response times with functions like video calls.

The Shortcomings of Using Wi-Fi Compared to Private 5G

Even though Wi-Fi is widely adopted as the long-time standard, it has considerable shortcomings:

Interference

Unlike private 5G, Wi-Fi may experience interference from other devices, metal machinery and even walls. Interference from electronic devices or the environment can disrupt the signal and limit the range.

Complex Environments Require Constant Management

In fast-moving environments, Wi-Fi experiences interference with metal machines and other devices and requires constant adjustment. On the other hand, private networks are a deploy-and-forget solution.

Security Vulnerabilities

Wireless networks are open to many security risks. Wi-Fi security can lack strong encryption and authentication protocols. This opens wireless networks to cyberattacks and infected devices that compromise security. Strong wireless security measures and even employee training are necessary for organizations to mitigate risks.

Signal Range Restriction

The distance that devices can be located from a wireless access point while maintaining a reliable connection is limited. The range still depends on factors beyond the router type. Obstacles like other electronic devices or walls can interfere with the connection.

Planning and Network Design Can Be More Costly than Private 5G

Wi-Fi planning and network design can be more expensive than a private wireless network. Creating good coverage and eliminating interference points on the floor can be tricky and take several weeks of planning.

There are also additional costs when upgrading Wi-Fi to the next standard. Enterprises would need to purchase devices (e.g., access points or routers), which can be more costly.

Energy Dependence

Wi-Fi devices rely on electricity and consume an increasing amount of it. Power outages can cause devices to become inoperable, disrupting critical wireless services. Private networks using a private slice of the public 5G network can stay operational for longer during power outages.

Bandwidth Constraints

Connection speeds may be slower in areas with many connected devices. If there are too many devices on the same wireless channels competing for bandwidth (e.g., many users in a virtual conference), signals can be dropped.

Wi-Fi Market Segments

Wi-Fi serves several use cases. This technology has advanced and become essential for indoor environments and various industries. The pandemic accelerated its adoption, leading Wi-Fi into new areas like telemedicine and online education. It is changing industries with smarter and more efficient IoT-enabled business operations.

Wi-Fi market segments include:

Private 5G vs. Wi-Fi: Choosing the Right Technology for Your Needs

Private 5G and Wi-Fi are evolving, and new upgrades and applications are being released. Industries like health care and manufacturing undergo massive digital transformations along with tools from artificial intelligence (AI) to automation. These tools can put pressure on networks and need more advanced connectivity.

  • Coverage area
  • Number of devices
  • Application demands
  • Business- and mission-critical applications
  • Security requirements
  • Budgets and investment

Carefully determine your enterprise's needs. Compare your needs to the pros and cons of private 5G networks and Wi-Fi to assist in making better decisions. Discuss your requirements with an expert in these networks and your industry.

Telit Cinterion: An Industry-Leading Expert in Wireless Connectivity

Telit Cinterion, a global IoT enabler, has vetted experience helping organizations support 5G and Wi-Fi solutions. We were the first top-tier IoT and mobile broadband module vendor to join the OnGo Alliance and drive private 5G innovation and adoption. Speak to our experts to learn how we can bring your organization a full-suite IoT solution.

Key Takeaways

  • Enterprises don't have to choose between private 5G networks and Wi-Fi. These two technologies can work together. Private 5G can be used for critical applications requiring ultrahigh bandwidth, ultralow latency and enhanced security. Wi-Fi can be leveraged for day-to-day operations.
  • Private 5G offers benefits like full control and superior range and performance, especially for large outdoor or remote areas. It also provides security features, including end-to-end encryption and network slicing. However, high costs and smaller scale present some drawbacks.
  • Wi-Fi 6 and later also offer several advantages, including lower starting costs and improved connectivity. It's ideal for enterprises that require a cost-efficient solution, especially indoors. On the other hand, Wi-Fi has more security vulnerabilities and can experience interference from walls and other electronics.
  • The increase in connected devices has created a demand for more reliable, secure connectivity. Choosing between private 5G or Wi-Fi depends on the organization's needs, such as security and coverage area.

Editor's Note: This blog was originally published on 11 December 2019 and has since been updated.