Techno-Economic Analysis of 5G Non-Public Network Architectures

Abstract

The adoption of private 5G networks or Non-Public Networks (NPN) by industry verticals is igniting a digital transformation across various sectors and also leading to industry 4.0. This impetus comes from the integration of private wireless networks with 5G capabilities. Currently, a range of innovative applications and use cases are emerging and resulting in improved enterprise performance and solutions. The potential to boost revenue, stimulate cost reduction, and accelerate Return Of Investment (ROI) makes 5G NPN adoption attractive to industry verticals, network operators and other third-party stakeholders. However, a significant infrastructure upgrade is required, which demands understanding of the complexities of 5G NPN deployment scenarios and their economic implications. This paper addresses these needs by conducting a detailed techno-economic analysis on 5G NPN deployment. The study formulates a techno-economic model that focuses on; (i) Cost savings in support of ROI achieved by enabling Network Function Virtualization (NFV) technology and Neutral Host (NH) concept; (ii) The trade-off study between enterprise goals (cost vs deployment technologies) with a multi-objective sensitive analysis; And (iii) the trends of 5G NPN adoption worldwide. Analytical results confirm savings of up to 53% in Total Cost of Ownership (TCO) reflecting a significant reduction in Capital and Operation Expenditures (Capex and Opex). Simulation analysis identifies a ranking order of deployment parameters, which prioritise the use of Cost saving strategies and Deployment type. And finally, it offers a prediction of a starting annual average worldwide adoption rate of 82.2% with an expected height by 2026.