Hyperscalers outpace telcos in private 5G race according to new Omdia research

LONDON, 22 November, 2021 – Microsoft is the most innovative private network provider globally, according to enterprises already using a private LTE and 5G network, finds a new study from Omdia. 

AT&T and Deutsche Telekom are also singled out as industry pace setters, according to Omdia’s latest Private LTE and 5G Networks research which surveyed enterprises globally.

Two thirds of enterprises require private network suppliers to demonstrate integration with their existing cloud platform before they will buy. Similar demands apply to enterprises’ IoT and application management platforms. 

“Enterprises have needs beyond connectivity when they buy a private network,” advises Omdia principal analyst for Private Networks Pablo Tomasi. “The top two reasons enterprises invest in private networks are better security and digital transformation. They need partners that can service those needs. Telcos may lose out if they don’t step up.”

Enterprises also want these results to be achieved promptly. 55% of enterprises expect a two-year return on their private network investment, but almost a fifth of those already deployed expect ROI in only a year. 

Consumption preferences are changing fast: three quarters of enterprises now planning a private network prefer a hybrid model instead of the fully dedicated private networks that dominate 70% of deployments today.

The findings are from an annual survey conducted by Omdia on enterprises using, trialling, or planning to deploy private LTE and 5G networks in six key verticals, part of the Private Networks Intelligence Service. A total of 451 respondents from seven countries participated in the survey. Full analysis of the survey is available in Omdia’s Private LTE and 5G Network Enterprise Survey Insight – 2021 report.