A journey
to 5G:
how private 5G andedge computing will
drive business growth,and how to achieve it.

A report produced
by Digital Catapult
for Verizon Business,
November 2021

Contents

Background and aim
Methodology

02
02

01
Introduction

04
03

02
Defining the technologies

05

What are 5G, private 5G andedge computing?

06

Enabling Industry 4.0

07

03
Business benefits

08

Private 5G networks
Edge computing

09
10

5G networks and edge
computing in Europe

1112

5G networks
Spectrum capacity, availability
and variation

15

Edge computing

15

05
What can private 5G
do for innovation?

16

Current status of private
5G network innovation
Creative industries

17
18

Ports, Airports and Transport Hubs 20
Manufacturing, Logistics& Construction

20

Hospitals and Healthcare

22

Other use cases: Higher
Education and Retail

01

06

23

Challenges to adoption

24

Misconceptions

25

Knowledge and skills gaps

25

Lack of information resources27

Affordability and ROI

28

Lack of case studies

29

Limited device ecosystem
and interoperability

29

Regulatory misalignmentand standards

30

Differences in definitions

30

Impact of Covid-19 on 5G& digital innovation

31

07
Conclusions

32

To consider when starting your
5G journey34

Acknowledgements & Appendix

36

Contributors

39

A journey to 5G

Background and aim

Methodology

This report is written for business end-users,
aiming to provide the knowledge needed tonavigate private 5G networks and edge computing
in order to help businesses achieve their goals.
Produced by Digital Catapult on behalf of Verizon,
it aims to fill the information gap around thesetechnologies.

Insights in the report are built on interviews withsenior industry executives carried out in summer
2021. Interviewees came from sectors ranging from
Telecommunications, Transport and Manufacturing,
to Live Entertainment and academia. We referto these interviewees as experts, executives
or interviewees.

The report is based on in-depth consultation withindustry professionals across the UK, Germany,
Italy, Denmark and other European countries atvarious stages of their 5G implementation journey.
It provides insights into the benefits of 5G (private
5G networks in particular) and edge computing forenterprise users.

In a workshop, we gathered additional insight from
13 participants from 5G end-user organisations
and businesses, suppliers, research houses andacademia that are exploring the use of private
5G networks and edge computing.

Verizon Business Group provides services
and products for business and government
clients around the world, from industry-leading
network solutions including private 5G andcybersecurity solutions to customer experienceand collaboration services.

Insights from this primary research werecomplemented with secondary data andinformation from sources including academic
journals, news articles, white papers andonline sources.

Digital Catapult is the UK authority on
advanced digital technology, with a wealthof expertise and experience of real-world
applications of 5G industrial use cases. Throughcollaboration and innovation, it accelerates
industry adoption of advanced digitaltechnologies to drive growthand opportunity across the economy.

02

A journey to 5G

01

Introduction

0301. Introduction

Introduction
5G is the next generation of mobile communication
technology, but this label can suggest‘faster connectivity’ without acknowledging thewide-ranging innovative capabilities 5G brings.
For many industries, the business advantages
will be unlocked through the use of private 5G– a local network owned and controlled by theenterprise – coupled with edge computing –positioned at the edge of the network, close
to where it is used.
The potential of these technologies is vast,
but 5G and edge computing are complex andin early stages of development. Relevant insightbased on experience is hard to come by and it’s
not unusual to see current 5G capabilities either
inflated or misunderstood. Experts say this makes
it difficult for businesses to evaluate whether theyshould consider 5G and edge computing.

This report aims to address that. It supportsbusinesses at the early stages of their
5G journey, helping to build an understandingof the new ways of working, innovative use
cases and business benefits enabled byprivate 5G networks and edge computing.
It includes recommendations and considerations
for businesses looking to explore, adopt,
and use these technologies.
Drawing on expertise that spans industry, network
operators and innovators, it delivers insight on
topics including:• The key business benefits in sectors ranging
from the creative to the manufacturing industry,including illustrative case studies• Barriers to adoption and ways to alleviate them
• Technology capabilities and how they differ
from other options• The policy and regulatory context around
private 5G networks in Europe

04

A journey to 5G

02

Defining thetechnologies

0502. Defining the technologies

What are 5G,
private 5G andedge computing?
5G – the 5th generation of mobile
network telecommunications represents a step change in network
performance capability, providing
business grade service levels, reliability
and availability incomparable withearlier generations.
5G can deliver speeds up to 100 times
faster than 4G, ultra-low latency,
high reliability, and increased capacity.
It will eventually allow up to one million
devices per square kilometre to connect
without interference – 4G can only
manage 2,000. 5G will also provide astable and reliable connection, even forfast moving objects. In coming years, its
capabilities will support innovative use
cases from smart cities to connected
ports, new ways to experience live
entertainment, remote collaboration andindustrial training, quality inspection,and much more.
Private 5G refers to a 5G network
developed for a particular organisationor enterprise. Wi-Fi networks run on
shared, unmanaged spectrum, whichmeans they may overlap and causeinterference. Private 5G networks,
however, operate on dedicated licensed
spectrum, allowing an enterprise
to connect many devices withoutcompromising quality of service.
A private 5G network operates withina well-defined geographical area suchas a port, mine, campus, warehouseor factory plant, or across sites of thesame organisation. By comparison,public 5G networks aim to cover large
areas and reach a wide audience.

06

An enterprise user can design a private
5G network tailored to its specificneeds and requirements.
Private 5G differs from other formsof connectivity, including private fibre
optic broadband, private Wi-Fi andprivate 4G/LTE, in several ways.
Private 5G networks offer tailored
coverage, high performance, dedicatedcapacity, and reliability, while drasticallyreducing latency compared to othercurrent network communications.
Combined with 5G’s capabilities andflexibility, the privacy and security
strengths of private 5G can unlock
entirely new applications and services.
Edge computing or edge computeis defined as computing that is done
closer to the end user, or nearer thesource of the data. In edge computing,the storage that computation relies on
is also implemented at the edge, rather
than in the cloud. Edge computing is
one of the key enabling technologies for5G and even more important for private
5G. Multi-access edge computing(MEC) exists in two general categories:
public and private. With private MEC,
specific MEC services are located ata business customer’s site, such as a
campus, factory or fulfilment centre. The
computation platform is closely linked
to the underlying network infrastructure,
either located at the telecom carrier’s
network location or on the customer’s
premises. This can reduce the volumeof data that needs to be transmitted
through an external network (when it
is processed locally on the businesscustomer’s premises) as well as the
distance travelled. The benefits include
lower latency, reduced core network
traffic and lower transmission costs.
Another advantage of edge computing
on-premises is that data remains
in-house for applications with strict
security or compliance requirements.

Private 5G spectrum
is a great advantage...
With licensed spectrum,
you are effectively paying inorder to control interference.
Part of the problem with
Wi-Fi is that you do not know
the levels of interference,and you cannot transmit
at the instant you want,
which can affect latency.
Petar Popovski, Professor and Headof Connectivity at Aalborg University,
Denmark

A journey to 5G

02. Defining the technologies

A MEC platform can be used to run
a wide range of workloads closer towhere they are needed; from end-user
applications such as immersive andindustrial automation applications, tovirtual network functions (VNFs) suchas the centralised and distributed units(CU/DU) of the radio access network(RAN) in both 4G and 5G.

Enabling Industry 4.0
5G and edge computing are importantenablers for the Fourth Industrial
Revolution – also referred to as
Industry 4.0 (or Industrie 4.0). The third
industrial revolution was characterisedby overall digitalisation. Industry 4.0
innovates based on the combinationof technologies such as artificial
intelligence, augmented and virtual
reality (AR and VR), the Internet ofThings (IoT), coupled with advanced
networks: it is characterised by overall
automation. This combination enables
robotic systems, digital twins, predictive
data analytics and visualisation. It also
facilitates the use of more advanced

07

connected devices including sensors
and trackers as well as many otherfunctions, with enhanced capabilities
such as near-real-time responsiveness.
Industry 4.0 is about the creation of
cyber-physical systems underpinningnew use cases and solutions that solve
long-standing challenges for industry,creating new business models andopportunities. The Industry 4.0 concept
is particularly relevant for connectedvalue chains (found in the factoriesof the future), smart supply chains(or Supply Chain 4.0), operations
and products.
Industry experts note that, asbusinesses increasingly automate
their operations, they find that reliable
connectivity is essential, acting as
an enabler for applications such asadvanced predictive maintenance.
As Industry 4.0 solutions and use-cases
multiply, 5G will become necessary tosupport these data-hungry capabilities.

The higher the flexibility
and modularisation of a
production line, the greater
the need for reliable wirelesscommunication in real-time.
Private 5G will enable thiswireless connectivity andwe see great potential in thistechnology on the way tosmart factories.
Niklas Ambrosy,
Volkswagen & 5G ACIA (Germany)

A journey to 5G

03

Businessbenefits

0803. Business benefits

In the enterprise, 5G and edge computing
can both underpin efficiencies driven bytechnological innovation and future-proof dayto-day business operations. Through the useof automated guided vehicles (AGVs), drones,
sensor technology and industrial robotics – allof which can be enabled by private 5G networks
and edge computing – businesses can become
genuine enterprises of the future.

Private 5G networks
The benefits of private 5G networks for business are wide
ranging. Broadly, they include:• Increased privacy and security• Increased productivity• Operational efficiencies, including reduced downtime• Increased operations sustainability
Business benefits are driven by the benefits of a private
enterprise network combined with the benefits of the 5G
technology capabilities:
Thanks to a private network, businesses benefit from:• Higher levels of privacy and security: 5G standards are
set according to “secure by design” principles, meaningthat security is natively embedded in the 5G architecture.
The owner/operator of a private 5G network can manage
their own security programme including configuration,
processes and procedures – no external network operator
is in charge. Private network owners have control that may
not be possible on a public network: the company candetermine who gets connected and data can be containedon premises. The nature of private 5G networks meansthat they can offer higher degrees of confidentiality,
integrity and availability – the ‘CIA’ triad in cybersecurity.1• Customising the network to exact needs: Unlike apublic network, a private network can be configured to an
enterprise’s specific needs. Its evolution can equally be
precisely designed to follow the enterprise roadmap of newneeds and requirements.
• Full network control: Once deployed, a private 5G network
is still fully under the control of the owner/operator, leading toconsistent and unified management of IT systems.
Benefits brought by the 5G technology to private enterprisenetworks include:• Low latency: Low latency is a game-changing 5G capability.
Latency is defined as the time elapsed between initiating
a data transfer and the completion of the data delivery.
Lower latency is desirable in the majority of business
operations, as it reduces response time for operations.
It is essential for ensuring high quality in applications
such as remote collaboration. Currently, 5G can achievesignificantly lower latency than other modes of connectivity,
at between 17-26 milliseconds (ms), compared to 36-48ms
in 4G. 2 Theoretical expectations are that latency could
reach a few ms on a private 5G network, particularly when
paired with edge computing, which helps cut application
latency.3 By enabling remote operations, low latency helps
with a better use of enterprise human resources and thedevelopment of more sustainable operations.
• Reliability: 5G networks are expected to offer reliability ofservice that is not available from other forms of connectivity.
The more robust coding schemes introduced in 5G makes
it far more likely that data will be transmitted with fewer
problems, which helps reduce downtime and enables
efficient operations.
• Network slicing: With 5G, a single physical communication
network can be split into multiple different virtual networks.
In enterprise applications, these virtual networks canbe customised with different specifications to provide
dedicated services to different users and requirements.
Slicing network traffic for specific uses can reduce
expected downtime for priority applications even further.
Network slicing offers unprecedented flexibility and greater
return on investment, since a common infrastructure can beused for multiple services.

1.	https://www.verizon.com/about/news/verizon-advances-5g-network-and-cyber-security
2. https://5g.co.uk/guides/4g-versus-5g-what-will-the-next-generation-bring/
3. https://www.3gpp.org/ftp/Information/presentations/Presentations_2017/2017_03_Bertenyi_5G_3GPP.pdf
09

A journey to 5G

03. Business benefits• Dedicated spectrum with nointerference: Private 5G networks
operate on reserved frequenciesof the radio spectrum which areallocated on a localised basis,
ensuring that there is no overlap
or interference. This is different to
Wi-Fi in which networks may overlap
with many others nearby. The lack ofinterference on private 5G ensures
greater levels of throughput andcontrol for businesses.
• Full mobility: Unlike Wi-Fi, 5G
is a mobile cellular technologythat enables full mobility whereconnected assets can movearound large areas, and experience
seamless connectivity with aconsistent level of performance.
This opens a large number ofinnovative industrial use casesthat were previously unfeasible.
Private 5G networks combine all
the benefits of an enterprise private
network with the benefits of the
5G technology; making private 5G
networks a truly unique solution forbusiness end-users.

Edge computing
To truly unlock the benefits of 5G,
businesses also need to consider
the best mode of computation anddata storage. Enter edge computing,which becomes a necessity as dataloads increase through Industry 4.0
applications requiring lower latencies.
In environments where vast amountsof wireless devices are used and entire
factories are equipped with 5G andlatency-sensitive Industry 4.0 solutions,edge computing will not only be useful
but necessary.
With edge computing, latency
is inevitably reduced,4 since thecomputation is closer to the point ofdata collection. Lower latency has an
immediate impact on the quality ofexperience (QoE) and can make new
types of services feasible, such as
collaborative robotics (cobotics). It also
can result in a reduction in backhaul
traffic and associated costs. Industrial
use cases, such as robotics and AGVs,
could utilise private edge computing
and private network. This would keep
the intelligence on-premises, improving
security and potentially helping to
reduce the cost of these robots.
Edge computing can also makeservices more resilient. Some
environments are not consistently
connected to the internet over highspeed links. The applications running on
the edge computing platform located in
the factory can continue during periodsof degraded or lost connections to theinternet, reducing downtime.
Experts note that edge computing is
an important complement to private

5G networks for both latency andsecurity reasons. The fact that data
stays locally improves system security
by isolating the data, which can help
business customers maintain regulatorycompliance.5 The feature can be
exploited by application providers to
improve both the service delivery andthe network itself.
For example, the edge can haveaccess to certain performance-related
information that is provided by the radio
access network (RAN). Applications
can be tailored and optimised using
this information, for example to adapt
a video coding scheme to enable asmoother user experience when the
network is congested. Furthermore,
service providers can protect their
networks against attacks from users
using contextual information suchas geo-location. Network operators
can filter out any traffic coming from
unexpected locations, since it could
potentially be fraudulent.
Retail is one of many sectors whereedge computing could have significant
impacts. By using data and analytics
on the edge, retailers can analysecustomer activities in store to drive
conversion rates. Video captured
through smart cameras can beprocessed at the device or edge
to understand aspects such as thecustomer path through the store,
how customers handle products
and interactions between sales
representatives and customers.
These insights can help increase
conversion as well as improve aspects
such as the productivity of sales
representatives and effectivenessof retail planning tools.

4. https://www.techtarget.com/searchnetworking/answer/What-are-edge-computing-challenges-for-the-network
5. Such as, for instance, GDPR related obligations.
10

A journey to 5G

04

5G networks
and edgecomputingin Europe1104. 5G networks and edge computing in Europe

5G networks
Generations of wireless communications
systems are launched roughly every
ten years. This means global markets
are now looking towards 5G to succeed
4G networks, which were introduced
in 2009. European policy and industry
players are striving for the region to
excel in various areas related to 5G,
including Open RAN6 (Radio AccessNetwork) availability, production ofdevices and more.
Although the UK and continental
Europe have been at the leadingedge of mobile networks – 4G was
first launched in Sweden in 2009,7
while the Global System for Mobile
Communications (GSM) standard wasdeveloped in Europe in 1991 – countries
including South Korea, Japan, China
and the United States are leading the
deployment of 5G networks in termsof geographical coverage, speeds andexperience.8 Governments in European
countries aim to change this.

Policy, trials and deployment
United Kingdom
The UK government’s 5G network
targets reflect the country’s aim to
be at the forefront of 5G innovation.9
The government aims for 5G coveragefor the majority of the population by
2027,10 with nationwide 5G coveragetargeted for 2033.11 It also plans tobuild an open, innovative and diverse

Case Study: 5G Innovation
Centre testbed
The 5G Innovation Centre (5GIC)
testbed at the University of Surrey
covers an area of four square
kilometres of the university campus,
allowing access to 5G and edge
computing capabilities to test cybersecurity, 5G applications, network
slicing and more.
The 5GIC has indoor and outdoor
testing facilities. The testbed RAN
allows the development of advanced
algorithms that improve the 5G user
experience and tools to enable usermodelling. The testbed supports
various projects and has SME
partners. Interested parties cancontact the university to explore
possibilities.15

5G supply chain to ensure the security
and resilience of digital networks.12
In October 2021, the UK government
announced a strategic framework
for the development, deployment
and adoption of 5G and future networks
in the UK over the next decade.13
Private 5G is starting to gain tractionin the UK, with initiatives such as
the government’s 5G Testbeds
and Trials programmes (5GTT),14
and private businesses trialling 5G.

UK Mobile Network Operators (MNOs)
are involved in several of these trials,
working closely with partners to provide
network capabilities.
UK communications regulator Ofcom
is also working with operators to test
the interoperability and integration ofopen networking solutions, including
Open RAN.
The largest number of governmentfunded business trials in the 5GTT
programme are currently in theEntertainment and Creative spaces(in particular to enable immersive
experiences with augmented reality
and virtual reality) alongside trials
in rural areas, with use cases in
Tourism.16 Industrial Manufacturing andConstruction are on a par with Mobility,
Ports and Logistics as the secondlargest groups of the 5GTT trials.

Findings from the first evaluationof the Industrial 5G Testbeds andTrials Programme suggest thatit can generate £2.58 billion for
the UK economy, or a return of£15 for every £1 invested, due to“...potential earlier adoption oftechnology in sectors such as
Healthcare and Manufacturing.”17

6. Open RAN is a term used for industry-wide standards for Radio Access Network interfaces that support interoperation between vendors' equipment
and offer network flexibility at a lower cost.
7. https://techcrunch.com/2009/12/14/4g-mobile-network-sweden-teliasonera/
8. https://www.opensignal.com/2021/02/03/benchmarking-the-global-5g-experience
9. https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1009577/uk-innovation-strategy.pdf
10. https://www.gov.uk/government/publications/statement-of-strategic-priorities
11. https://www.gov.uk/government/publications/future-telecoms-infrastructure-review
12. https://www.gov.uk/government/publications/5g-supply-chain-diversification-strategy
13. https://www.gov.uk/government/consultations/wireless-infrastructure-strategy-call-for-evidence
14. https://www.gov.uk/guidance/5g-testbeds-and-trials-programme
15. https://www.surrey.ac.uk/institute-communication-systems/facilities/campus-testbed
16. https://uk5g.org/media/uploads/resource_files/UK5G_5GTT_Sector_and_Place_Matrix_24022021.pdf
17. https://www.gov.uk/guidance/5g-programme-findings
12

A journey to 5G

04. 5G networks and edge computing in Europe

Industry players including US
automotive giant Ford, German tech
giant Siemens and UK machine
manufacturer Tharsus are working
alongside MNOs, Research andTechnology Organisations (RTOs),18
and other partners to test use cases,
network requirements and othernetwork characteristics to determine
optimal 5G environments for business.
Logistics companies and sites are also
beginning to delve deeper into 5G,
with organisations such as the Portof Southampton 19 working to developa private 5G network within its territory.

Germany
In 2016, the German federal government
launched its 5G strategy to makethe country a leading market for 5G
networks and applications by 2025. 20
The strategy focuses on five key actions:
1. Stepping up network rollout
2. Making frequencies available
based on demand
3. Promoting cooperation
between telecommunications
and user industries – taking into
account requirements, ideas andsolutions of relevant user
industries in standardisation
4. Targeted and coordinated research

Case Study: 5G VerticaleISS

5. Initiating 5G in towns andcities early on

As part of the French Covid-19
recovery plan, the 5G Verticale
Interoperable Souveraine Sécurisée
project (5G Verticale ISS), 25 led bytelecoms provider Alsatis, aims totest use cases defined by project
partners ranging from Healthcare
and local authorities to industry
players. In addition to bringing 5G
to these sectors, the project aims
to enable integration of legacy uses
and networks.

The German government alsoseeks to work with other European
countries to promote and develop
private 5G networks in industry.
A partnership between Germany
and France aimed at promoting
Europe’s independence in innovativetechnologies21 launched a €20 million
call for funding for private 5G network
solutions in May 2021. 22

FranceFrance is also encouraging the use
and development of 5G, with theSecretary of State for Digital,
Cédric O, announcing that France
aims to build a “...sovereign solution
for business networks by 2022.”
5G deployment and trials in France
are underway predominantly in the
Industry 4.0 area, as well as smart
cities and connected mobility. 23
In July 2021, the French government
presented a strategy24 aiming to put
5G at the heart of industry, basedon four pillars:
1. C ontributing to France’s
competitiveness by developing 5G
use cases across industries andterritories
2. Building up French capability intelecoms networks by 2022-2023
3. Supporting cutting-edge R&D
of future network technologies
4. Strengthening training andattracting talent to meet theskills needed for the design
and implementation of future
networks

18. https://www.ericsson.com/en/news/3/2020/ericsson-and-digital-catapult-to-unlock-5g-potential-with-uk-smart-manufacturing-partners
19. https://www.verizon.com/about/news/verizon-european-private-5g-deal-associated-british-ports
20. https://www.bmvi.de/SharedDocs/EN/publications/5g-strategy-for-germany.pdf?__blob=publicationFile
21. https://www.euractiv.com/section/digital/news/eu-commission-greenlights-german-initiative-to-eradicate-dead-spot-problem/
22. https://www.bmwi.de/Redaktion/DE/Pressemitteilungen/2021/05/20210525-Deutschland-und-Frankreich-starten-Foerderaufruf-zu-5G-Anwendungen-undprivaten-Kommunikationsnetzen.html
23. https://www.arcep.fr/cartes-et-donnees/nos-publications-chiffrees/experimentations-5g-en-france/tableau-de-bord-des-experimentations-5g-en-france.
html
24. https://www.economie.gouv.fr/plan-de-relance/5g-lancement-strategie-nationale
25. https://www.fftelecoms.org/nos-travaux-et-champs-dactions/soutien-du-comite-strategique-de-filieres-infrastructures-numeriques-projets-innovants-liesau-developpement-de-la-5g/#projet_engage_5g_and_beyond
13

A journey to 5G

04. 5G networks and edge computing in Europe

The European Union
Having set the goal to advance the take-up and availability of 5G for business, 26
the European Commission in 2021 added the target to cover all populatedareas with 5G by 2030. 27 The EU funds various 5G trials through collaborative
research and innovation schemes such as Horizon Europe. Over 200 trials were
underway across 25 of the 27 EU member states and the UK as of March 2021. 28

The EU’s 5G Roadmap 2014-2020

June 2014:
5G EU – South Korea
Joint Declaration

End 2015: Global consensus
on the ‘5G vision’ including thebroad definition, key functionalities
and the target time table

May 2015:
5G EU – Japan
Joint Declaration

WORLD MILESTONES

Initial decision on main
5G possibilities

ST
AR

T

Development of worldwide
interoperability standard of 5G

Early commercial
deployment of 5G
systems for selectedadvanced uses

20

16

20

15

20

14

Launch of large scale
trials of 5G systems
and technology

Full commercial 5G
infrastructure deployment

EU MILESTONES

BE
Y

20 OND20

Jul 2015:
Launch of phase 1of EU – funded
5G projects

20

Launch of phase 2
of EU – funded
5G projects

20

March 2015:
Announcement ofEU vision on 5G

20
19

20

18

20

17

February 2014:
Launch of the 5G
Public Private
Partnership

5G technology
showcasing at
PyongChang
2018 Olympics
Launch of phase 3
of EU-funded
5G projects

Gigabit connectivity
based on 5G
technology makes
debut at Tokyo 2020
Summer Olympics

26. https://digital-strategy.ec.europa.eu/en/policies/5g-action-plan
27. https://ec.europa.eu/info/strategy/priorities-2019-2024/europe-fit-digital-age/europes-digital-decade-digital-targets-2030_en
28. https://5gobservatory.eu/5g-trial/major-european-5g-trials-and-pilots/
14

A journey to 5G

04. 5G networks and edge computing in Europe

Spectrum capacity,
availability andvariation
Spectrum is at the core of wirelesscommunications and 5G operates
at a variety of bands within the radio
frequency spectrum. Countries
have designated specific frequency
spectrum bands for 5G. In the 2018
Electronic Communications Code, 29
the EU mandated deadlines for member
states to have allocated 5G spectrumby the end of 2020, but not all countries
met this deadline. National regulators
release these spectrum bands to
MNOs, typically by auction, or, incountries including the UK, Germany,and France, grant it to enterprises.
Spectrum auctions for public networks
and MNOs were delayed due tothe Covid-19 pandemic. Markets
including the UK, France and Germany
have begun or concluded their 5G
regulations, allowing businesses toown spectrum for private 5G.

Edge computing
If you haven’t heard about edge
computing, you’re not alone: ourinterviews suggest communications
companies have not publicised thetechnology extensively. However,
the increase in data generated throughthe advanced digital services of Industry
4.0 means that many European industrial
players are considering technologies
such as edge computing to manage andstore data. This is reflected in increased
investment in edge computing fromcloud service providers (e.g. Amazon
Web Services, Google Cloud Platform,
Microsoft Azure). The EU views thisas a substantial opportunity for Europe.
EU-funded project Next Generation
Internet of Things (NGIoT)31 notes thatedge computing “... paves the way for
new applications, new value propositions
and sustainable growth, delivering on
the European Green Deal.”32

The UK Research and Innovationbody (UKRI) has funded several edge
computing-related collaborative
research projects, including Intelligent
Edge of Things, focused on developing
an intelligent three-tier Edge IoTarchitecture33 and Piccolo, focusedon edge computing and 5G services
for automotive data processing and
IoT vision processing.34 National
governments in the EU are also activein edge computing, with Germany
announcing funding for an edge
computing research programme
in June 2020.

Potential business models for deploying wireless connectivity, including 5G
MNO

Private network

Hybrid solution

Privatenetwork

Publicnetwork

Third party using MNO network

Third party provider (deploying private network)
Source: Ofcom’s spectrum management strategy for the 2020s30

29. https://www.europarl.europa.eu/legislative-train/theme-a-europe-fit-for-the-digital-age/file-5g-action-plan
30. https://www.ofcom.org.uk/__data/assets/pdf_file/0017/222173/spectrum-strategy-statement.pdf
31. https://www.ngiot.eu/
32. https://www.ngiot.eu/report-iot-and-edge-computing-opportunities-for-europe/
33. https://gtr.ukri.org/projects?ref=106199#/tabOverview
34. https://gtr.ukri.org/projects?ref=106196
15

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05

What can private 5G
do for innovation?

16

05. What can private 5G do for innovation?

Many regard 5G as an enabler of new trends and use casesin advanced manufacturing, live entertainment, healthcare
and beyond, with applications including AR/VR solutions,remote collaboration and co-creation, or quality inspection.
Industry experts point out that these technologies andapplications are not necessarily new. They typically haven’t
reached their potential due to the lack of a reliable, high-speed,
and secure wireless connection. Private 5G networks cansolve this problem, unlocking innovation.
Private 5G can also impact the rapidly changing world of work. The Covid-19
pandemic meant that most industries needed to find more alternate businessmodels and often remote ways of working. Industry experts are looking to 5G
as a means to improve existing operations, as well as enable more innovative
ways of working and new value propositions.

Current status of private 5G network
innovation
Of the organisations consulted for this study, those that are using 5G and edge
computing are mostly at a relatively early stage. This is true for the whole ecosystemof end users and integrators: most organisations are in the planning and ideation
stages, while a small minority have started trialling and implementing the technology.

The greater the numberof PoVs, the more the valueof 5G will become clear
and companies will be more
willing to explore it. But aswith any new technology,
it will take time for (private
5G networks) to reach theirfull commercial maturity.
Dr Esmat Mirzamany, International
5G Solution Lead, Verizon

A Global mobile Suppliers Association (GSA) report35 on private networks globallyhighlights 370 companies known to be deploying LTE (4G) or private 5G mobile
networks, or known to have been granted a licence suitable for deployment. This is
an increase from 311 organisations in May 2021. According to Dr Esmat Mirzamany,International 5G Solution Lead at Verizon, the number is continuing to grow,36 andindustry expert Mathieu Lagrange, Networks & Security Director at French researchand technology institute b<>com, also stated that the “demand for private network
solutions is very strong” and that the European market will experience “around 20%
growth year on year until 2030”.37
Enterprises remain relatively cautious about implementing private 5G networks,
however. Many applications are still in their Proof of Concept (PoC) or Proof of Value(PoV) phases, while devices and equipment are often at prototype stage. The PoC
and PoV phases demonstrate how a product works and identify the value of the
product based on use cases, respectively.

35. https://gsacom.com/paper/private-mobile-networks-executive-summary-august-2021/
36. Interview conducted by Digital Catapult with Dr Esmat Mirzamany, Verizon
37. https://b-com.com/en/accelerate/do-you-really-need-this-private-5g-network
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05. What can private 5G do for innovation?

Creative industries
The nature of entertainment consumption
and production is changing rapidly.
Creative industries have to remain
innovative – in content production anddistribution models as well as in theexperiences they provide to ever-more
demanding consumers.
5G is increasingly used in conjunction
with other innovative technologies,
such as AR/VR. Technical benefits of
5G, particularly those of low latency andhigh capacity, mean that new creativeideas, applications and streams can be
enabled across the creative industry,including live sports, gaming, theatre,
music, TV, film and beyond.

One of the greatest
opportunities that (private)
5G can bring to the arts andculture sector is the seamlesspivot to hybrid experiences– bringing together physicaland digital worlds.

Case Study: 5G Festival
The 5G Festival taking place inSouth East England is one of theworld’s first 5G powered hybrid
immersive festival experiences.
It showcases connected, innovativeand functional platforms enablingmusicians and artists to write,
rehearse and produce music jointly
despite geographical barriers anddelivers new ways for audiences
to interact with live performances.
The 5G Festival uses a private 5G
network for in-venue trials andpublic 5G for in-home experiences.
Trials in the award-winning festival
tested critical aspects of 5G
required to enable remote music
collaboration. This included testsof how much audio latency that canbe tolerated for remote performers
to successfully collaborate and how
spatial audio delivery (3D audio)
instead of stereo can aid seamlesscollaboration.38

network with a venue camera crew inplace at one end, sending the audio
and video feed direct to the studio
to be mixed live and distributed backout to audiences.
The festival was funded by the£200 million 5G Testbeds and Trials
programme (5GTT) from the UK’s
Department for Digital, Culture,
Media & Sport. It was put together
by partners including Brighton Dome,Metropolis Studios, O2, Sonosphere,
Digital Catapult, Audiotonix, BDBF,
Warner Music Group, Mativision,and Live From.

Another use case will enablevenues to bypass capacity
restrictions to deliver a broadcastof live entertainment to at-homeaudiences. This can be done withlimited equipment: a point-to-point

Donna Close, Digital Culture Associate,
Brighton Dome & Brighton Festival(BDBF)

38. https://uk5g.org/discover/testbeds-and-trials/5g-festival/
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05. What can private 5G do for innovation?

Gavin Newman, Brand Director at
London-based recording and masteringstudio Metropolis Studios, notesthat the ongoing 5G Festival project
acts as “an eye opening experience
about (private) 5G and its benefits...
It will enable seamless performance,
communication and workflows”.
Newman highlights applications
including the possibility to collaborate
and rehearse remotely, noting this is“groundbreaking for the live musicindustry and wider arts community”.
Such applications are expected to savethe industry time and reduce cost.
“The Remotes” is a musical groupformed for the 5G Festival trials.
The low latency and high capacity of
5G enabled the musicians to rehearse
and perform from physically separate
locations throughout the country, using
augmented reality glasses from device
manufacturer Nreal’s Mixed Reality(MR) and 360° video. The Nreal glasses
provided a fully immersive experience.
These applications on 5G “reallygave a glimpse into the future,” says
Newman.39

5G combined with the Internet ofThings (IoT), in the form of wearables,
can also enable audiences to interact
and respond to artists in real-time,effectively co-creating with artists byaffecting changes in a performance.
Alongside the Creative sector, footballclubs are beginning to explore ways
in which a private 5G network could
enhance audience experiences andoffer new ways of engaging withthe sport.

Case Study: 5G VISTA
5G VISTA (Video in Stadia TechnicalArchitecture) is a partly-governmentfunded collaborative R&D project
taking place in London, UK. It aims
to deliver next-generation viewing
experiences for event spectators byproviding live multi-angle HD video
streams and interactive content froman event directly to devices in stadiums
as well as to audiences across the UK,
using Multi-access Edge Compute(MEC).
The goal of the project is todemonstrate consumer demandand deliver the business case for
5G-powered sporting events. A fulldemonstration at a live sports eventis planned for February 2022 using
5G LTE feMBMS (further evolved
multimedia broadcast multicast
service). The audience will be able toenjoy instant replays via smartphones
during events and access content
from multiple camera angles.40

39. Interview conducted by Digital Catapult with Gavin Newman, Metropolis Studios
40. https://uk5g.org/discover/testbeds-and-trials/project-vista/
19

A journey to 5G

05. What can private 5G do for innovation?

Ports, Airports andTransport Hubs
Ports, airports, and other transport hubs
are an important focus for 5G vendors
and service providers. These large-scale
coordination and exchange hubs alreadygenerate large investments into public
cellular (indoor and outdoor), Wi-Fi andother wireless technologies.41
For instance, the Cologne Bonn airport
in Germany is building a private 5G
network to experiment with innovative
applications such as intelligent luggage
checking and border control and toincrease operational efficiency overall.42
The airport has been awarded a licenceby the German Federal Network Agency,with frequencies ranging from 3.7GHz
to 3.8GHz.

Case Study: ABP Ports
ABP Ports, operator of the Port ofSouthampton in the UK, is working
with industry partners to enablesecure connectivity across selectedareas of the port. Integrating 5G into
the port will:• Simplify connectivity systems• Strengthen the security andreliability of communications
between terminals• Enable the development ofadditional and more automatedoperations
Increased use of IoT, AI, machinelearning and data analytics requires
the capacity of a private 5G
network due to the volume of data
being generated and used. 5G will
underpin much of the infrastructure
to enable these advanced
technologies.43

Manufacturing,
Logistics &Construction
Germany, Italy, France and the UK
are four of the world’s ten largest
manufacturing nations.44 However,the competitiveness of the European
Manufacturing sector is being challenged
by other regions, both in volume of goods
produced and the adoption of industrial
digital technologies (IDTs), including 5G.
The Manufacturing and Logistics sectors
are at the forefront of 5G innovation,with Manufacturing being one of thesectors experimenting most with private
5G networks.45 Global multinational
manufacturers including automotive
manufacturers Ford and Volkswagen
Group, aerospace company BAE
Systems, and cable manufacturer
Prysmian Group are exploring how
they can improve operations.46
The low latency of 5G can optimise
manufacturing activities with remotely
automated functions, including
collaborative robots, autonomousvehicles, digital twins and predictive
maintenance of shop floor equipment
as well as quality control and anomaly
detection. 5G can also drive productivity
gains. One trial by Worcester Bosch in
the UK found that private 5G enabled
a 2% productivity improvement forsome applications.47

41. https://stlpartners.com/research/airports-the-roles-of-5g-private-networks/
42. https://www.airport-technology.com/news/cologne-bonn-airport-ntt/
43. https://www.abports.co.uk/news-and-media/latest-news/2021/verizon-business-signs-its-first-european-private-5g-contract-with-associated-british-ports/
44. Make UK, UK Manufacturing Facts 2020/21
45. https://uk5g.org/attend/driving-smart-x-world-with-private-5g-networks/
46. Expert interviews conducted by Digital Catapult, Summer 2021
47. https://www.ericsson.com/en/cases/2020/the-5g-factory-of-the-future
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05. What can private 5G do for innovation?

Case Study: 5G Factoryof the Future
Led by a consortium of industrial,academic partners and SMEs
including BAE Systems, IBM, AMRC
NW, Digital Catapult, aql, Miralis and
MTT; 5G Factory of the Future trials
5G connectivity in five use cases
common in manufacturing. The
project tests the capabilityof 5G in:
• RTM real time monitoring
and closed loop control of amachining process to control
the input variables and ensure
extremely tight tolerances aremaintained• Factory Ecosystem Monitoring(FEM) of the factory to enable
reconfigurable assembly cells• Optimised packing & asset
condition monitoring throughthe supply chain, for improved
transparency and digital handover• XR/AR usage for remoteassistance, collaboration andinspection• The use of Digital Twin
Technology (DTT) to createa reference architecture andenable scenario mapping — withthe ability to to simulate real life
situations and using historical
data to predict behaviours in theprocess, or to optimise factory
layout and flow
The testbed is expected to result
in reduced downtime of factoryequipment, reduced infrastructure
requirements and a futureconnectivity blueprint.48

Research has found that 76% ofmanufacturers across four countries
plan to use private 5G by 2024.49 One
example is a Volkswagen factory plantin Germany, which currently has a line
production with an AGV fleet, which isused as part of the production process
and runs on Wi-Fi. The automotive
manufacturer plans to move to matrix
production in the near future andbecome more flexible. The vehicles
being produced will only be brought
to the stations required for theirconfiguration and features. This will
increase productivity as steps that are
not needed for specific vehicles can beskipped. Production will become more
complex and Volkswagen will need toevaluate suitable concepts such as acentralised guidance control systemin the cloud to control its AGV fleet.
The company plans to make use ofa private 5G network to meet therequirements of future production
systems.50 Because of 5G and the low
latency that comes with it, AGVs will
be able to drive much faster whilst
maintaining safety, and as such will
be more efficient.

In the next 5-10 years, whenlooking at the future ofdigital twins and connectedsupply chains, and as more
peripherals emerge that
support 5G, it will become
more important to connect
with it.
Farooq Yaqub, Innovation Engineer& XR Lead, Ford

Both interviews and desk researchsuggest that Manufacturing and
Logistics are likely to continue to leadin early adoption of 5G, creating morelearnings, demonstrating use cases
and testing technical requirementsthat can be shared with other industries.
Equipment and technologicalinfrastructures used in manufacturing
are likely to develop to include
specifications that require 5G asa standard, both internally and tointeract with other partners indigital supply chains.

48. https://uk5g.org/discover/testbeds-and-trials/5g-factory-future/
49. https://accedian.com/wp-content/uploads/2021/09/Accedian_Accelerating-Smart-Manufacturing-with_Analyst-Research.pdf
50. Interview conducted by Digital Catapult with Niklas Ambrosy, Volkswagen DE
21

A journey to 5G

05. What can private 5G do for innovation?

Similarly, the construction and built
environment industry, althoughtraditionally slow to adopt digitaltechnologies, is exploring how private
5G and edge computing can help
improve functions including monitoring
and connectivity for commercial use in
infrastructure projects such as airports
and highways. Industry experts notethat it is particularly important forthese sectors to build for future needs.
Buildings and infrastructure are built tolast a long time and must be equipped
for the future.
Construction sites are often in areas
with poor coverage, since necessary
infrastructure is in the process of being
built. By its nature, a construction
site is also a rapidly and drasticallychanging environment. It is more
likely to require frequent changes tothe network configuration, which iseasily done with private 5G solutions.
Furthermore, construction sites can beseen as temporary manufacturing sites,with low latency required to enable site
control. Studies suggest that the useof edge computing in the Constructionindustry may also improve the efficiency
and quality of Construction safety
management (CSM).51

Case Study: 5G Smart
Roads
Spanish Transport Infrastructureand Mobility services company
Ferrovial is working withinternational partners Microsoft, 3M,
Kapsch TrafficCom and others todevelop the 5G-enabled AIVIA smart
roads platform.
Launched in early 2021, theproject uses private 5G and othertechnologies in the construction andoperations of the roads of the future.
These roads will form critical partsof the connected infrastructure
required for connected andautonomous vehicles, whileproviding better safety forconventional vehicles. Private
5G will be used for construction,
while public usage of the smart
roads will use public 5G. This will
help reduce congestion, improve
journey times and provide 5G
connectivity to road users.52

Hospitals and
Healthcare
Within hospitals, private 5G networks
can support new applications andimprove collaboration and automation.
One key benefit of a private 5G
network is data privacy: hospitals
can deploy on-site mobile networks
without transmitting data throughpublic networks. A private 5G network’s
speed, reduced latency, and highbandwidth connectivity (combinedwith mixed reality and AI capabilities)
could enable real-time precision
medicine and the rapid sharing oflarge files to improve patient care.
One recent study 53 notes that
healthcare applications that 5G
could support include:• Telemetry and VR training on surgicalprocedures• Quick and reliable transport of hugedata files of medical imagery• More resilient and higher-speed
connectivity for hospital machines

51. https://www.itcon.org/papers/2020_25-ITcon-Chen.pdf
52. https://newsroom.ferrovial.com/en/press_releases/ferrovial-launches-aivia/
53. https://accedian.com/wp-content/uploads/2021/09/Accedian_5G-Brief_Healthcare.pdf
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05. What can private 5G do for innovation?

Case Study: Engage 5G& Beyond
As part of France’s Covid-19
recovery plan, the Government
funded the “Engage 5G & Beyond”
project led by b<>com, one ofeight institutes of research andtechnology backed by the French
Government. The project aims todevelop solutions to allow better
remote monitoring of patients
through the deployment of a
private 5G network at the Rennes
University Hospital.54 This will
enable operational efficiencies suchas seamless sharing of large files,
provision of patient data directly
to their rooms, and freeing up Wi-Fi
for patient access. Over the next
three years, the Engage 5G& Beyond project will also enable
5G experimentation in Industry 4.0
and Energy sector use cases.

Similarly, the private 5G network set
up by the city of Liverpool, UK55 aims
to demonstrate 5G solutions for Healthand Social Care services that reduce
costs and create extra capacity forstaff. At Kings College London (KLC)
UK, a 5G network in combination withsurgical robotics was used to show
how the remote transfer of haptic,
tactile, audio and visual technologies
can support a surgeon or doctor
performing a diagnosis, or even surgery
on a patient anywhere in the world.56

Other use cases:
Higher Education
and RetailOn university campuses, private 5G
networks can allow users to increase
the efficiency of daily operations,improve connectivity for students andfaculty members and enable academic
exploration of 5G.
Retail and Leisure venues are testing
5G to provide new customer
experiences and test high volume
network access. 5G-enabled shopping
centres including The Square in
Camberley, UK and Finland’s Mallof Tripla are working with Research,
Technology and industry partners
to trial new methods of connectivity
to provide data-driven customer
experiences, offer innovative value
propositions and support the evolutionof smart cities.

54. https://www.entreprises.gouv.fr/fr/presse/france-relance/france-relance-developper-des-applications-5g-dans-domaine-de-la-sante
55. Liverpool 5G: The network was set up for a consortium of public sector, health and social care suppliers, the NHS, university researchers, third sector
organisations, local SMEs and a UK 5G technology vendor.
56. https://www.kcl.ac.uk/archive/news/informatics/newsrecords/king's-demonstrates-how-5g-technology-can-enable-mission-critical-services
23

A journey to 5G

6. Challenges to adoption

06

Challenges
to adoption24

06. Challenges to adoption

All early-stage innovative technologies
have growing pains. Private 5G andedge computing are no different.
From issues of integration with legacy
networks and a lack of compatible
devices to problems identifying
the appropriate use cases for eachbusiness vertical,57 the adoption ofprivate 5G networks in enterprises
faces challenges.

Misconceptions
5G is a complex technology.
It’s not surprising that there are
misconceptions and a lack ofknowledge around it.
On a basic level, a common
misconception is that many of thebenefits of 5G and edge computing arealready available with Wi-Fi and otherconnectivity alternatives. They are not.
For example, later evolutions of LTE
and Wi-Fi 6 can offer high capacity,
but can’t manage radio resources as
efficiently as 5G. 4G has network slicing
of sorts, but this requires replicatingsome core elements and is not end-toend. At the other end of the spectrum,
expert interviewees point to a problem
of grandiose 5G myth-making by somecompanies marketing the technology.
Claims made for the emerging
technology can seem excessive, tothe point where some see them as
misleading. The truth about 5G sits
somewhere in the middle.

Knowledge andskills gaps
Our expert interviewees suggestthat often only select teams withincompanies – such as R&D or those
responsible for digitalisation,
automation and innovation – havea good understanding of private
5G networks. Knowledge held byindividuals who work directly withprivate 5G networks often remains
in internal siloes. According to a study
from Accedian, 68% of manufacturers
interviewed across four countries
would like to outsource private network
management rather than manage itinternally, due to the complexities of
the task.58 To broaden the internal
5G knowledge base, a first-stage fix
for those with specialised technology
expertise is to share knowledge andbest practice within their organisations.
Where management teams resist
exploring 5G, this is often due toknowledge gaps: decision-makers
most commonly hesitate because
the immediate benefits are not clear.
A clear business case includes having
an understanding of what, specifically,
5G can deliver across all teams – notjust IT. Interviewees point to the factthat boards and management teams
need to be convinced of 5G advantages
through demonstrated use cases
and best practices. Support from 5G
technology suppliers is also needed.

5G is often presented
as a panacea andsolution for everything.
This narrative does not
manage expectations norgive an accurate perspectivefrom a business, cost, andtechnology standpoint.
Stefano Brandinali, Chief Digital
Officer, Prysmian Group, (Italy)

57. https://www.capgemini.com/gb-en/wp-content/uploads/sites/3/2021/06/Final-Web-Report-5G.pdf
58. https://accedian.com/wp-content/uploads/2021/09/Accedian_Accelerating-Smart-Manufacturing-with_Analyst-Research.pdf
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06. Challenges to adoption

The biggest problem
will be around changing
people’s mindsets rather
than implementing (5G)
technology itself. There
are many learnings to beacquired from it, but people
need to accept some levelof change and potential risk
first. There are challenges
but the benefits will largely
outweigh them.
Senior Engineer at a leading data
storage service provider

Enterprises lacking in-house knowledge
need to upskill or hire more specialised
talent if they are serious about 5G.
In some sectors, there is significant
curiosity and interest in the technology,
but this is often dampened by limited
5G technical and business know-how.

Coupled with generally risk-averse
attitudes which, according to industry
experts, are more common in Europe
than in other parts of the world, thelack of in-house expertise and the needfor upskilling does not allow for muchneeded 5G experimentation.

Interest in private 5G networks is
growing in the Live Entertainment
sectors, for example. Stakeholders
believe the technology could allow themto transform their current capabilities
and create new business models, inareas from writing processes andrecording workflows to new types of
performances. While the pandemic
provided impetus for developing
theoretical 5G know-how, it did notallow businesses to experiment.

Industry insights indicate that staff
across sectors and industries are eager
to both learn and upskill, but it is notalways clear to management where
quality, industry relevant training canbe found. The problem is how to train
staff and provide practical upskillingrather than recruiting for new roles.
In some specialised, technology
intensive industries, some staff may
already have the skills required touse and implement 5G, but external
support in upskilling a larger part of
the workforce is still needed. The bestsolution may be to ask trusted peers
for recommendations and to encouragecontinuous research and knowledgeseeking from staff being trained.

A Capgemini Research Institutesurvey59 further notes that potential
end-users of private 5G networks stillneed the appropriate skill sets to buy
the relevant infrastructure and industryspecific solutions for their business.

59. https://www.capgemini.com/gb-en/wp-content/uploads/sites/3/2021/06/Final-Web-Report-5G.pdf
26

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06. Challenges to adoption

Lack of information
resources
The experts we interviewed highlighted
the lack of information resources about
private 5G use cases and learnings.
Given the early stage of overall
adoption, industry knowledge sharing
often happens through specialised
conferences, trade groups andforums such as 5G-ACIA.60 However,some interviewees also cited somedependence on device manufacturers
for specific information.
To overcome some of these difficulties
in knowledge sharing, businesses cangain knowledge by participating incollaborative R&D projects, speaking
with industry peers, seeking out detailsof successful trials and working with
network operators. Governments,
national innovation agencies(e.g. UK Research & Innovation)and research, development andinnovation organisations (such as
Digital Catapult in the UK, the Carnot
Institutes in France or the Fraunhofer
Institute in Germany) can play animportant role in supporting these
R&D and innovation activities andenabling proof-of-value concepts
to point the way towards ROI.

We are still unable toconsider private 5G as an
official part of our budget
or usage due to the lack ofunderstanding around it, as
well as the absence of rate
cards to understand thecost for on-location datatransfer. This could change
if more academic papers andresources with different use
cases and descriptions ofworkflows of the technology
could be used as inspiration,
best practice, and learnings.
Tomasz Witkowski, Directorof Technology & Engineering,
Twickenham Film Studios

60. https://5g-acia.org
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06. Challenges to adoption

Affordability and ROI
The success of a technology
is typically based on public
engagement, demonstrations andbetter understanding of the ROI.
Early adopters have noted that
it is predominantly multinationalorganisations that are willing to run
trials with industrial 5G. They believe
it will likely take around three years
for smaller companies to start their
5G experimentation.
Thorough planning aroundexperimentation and deployment fora defined use case is essential to ensure
maximum ROI from 5G. As noted by
Chris White, Electrification Manager
at Ford Europe at the May 2021 Private
Networks Forum:61 “...there is a businesscase for all of the things (private 5G)
enables within the enterprises –whether that is Industry 4.0,
or augmented reality and preventive
maintenance via IoT sensors.
All those things have a businesscase, but (the market) has to realise
you cannot just put a 5G network in
and get a return; you need a plan foreverything to launch off the back of it.”62
In other words, organisations should
not only consider the fact that it may
take some time between 5G being
implemented and positive outcomes,
but also make sure that the use casebehind their implementation of a
private 5G network is well defined.
The fact that many of the most exciting
possibilities of 5G come by combining
it with other technologies potentiallyputs 5G in a difficult position.
For companies considering 5G,
this combination of several newtechnologies can seem too risky
when there are limited proof-points.

Industry research suggests that trials ofprivate 5G networks based on multiple
use cases can help justify investment.
Service providers need to work acrossdepartments to aggregate use cases,
gain management approval and makesure the team responsible for network/
IT infrastructure renewal is involved
from the start.63
The business case will be madestronger by considering network
flexibility: since the network can beused for additional, not-yet-conceived
services and helps future-proof
connectivity, the ROI goes beyond thespecific use case. Experts have also
noted that if their companies could
leverage a public 5G network, this may
lower costs, but would come at theexpense of control and flexibility.

61. https://www.privatenetworksforum.com/home
62. https://enterpriseiotinsights.com/20210525/channels/news/enterprises-dont-understand-the-tech-or-the-business-case-ford-on-what-to-fix-with-private-5g
63. https://accedian.com/wp-content/uploads/2021/09/Accedian_Accelerating-Smart-Manufacturing-with_Analyst-Research.pdf
28

A journey to 5G

Lack of case studies
An increasing number of industrial use
cases for 5G are currently emerging.
These include the ability to remotely
control and operate machineryand conduct quality controls andinspections, run AGVs and otherautonomous robots, industrial training,
digital twins and remote collaboration
using AR/VR.64 However, these are
not widely publicised and known.
The shortage of known case studies
inhibits 5G experimentation. There is aneed to identify and document existinguse cases and to share knowledge
among industry players and academia.
Some organisations are convincedthat 5G will enable the introductionof new products, services, and businessmodels – therefore driving revenues
and justifying initial investments.
Insights gathered for this reportsuggest that, to fuel the market,
technology providers and operatorsneed to define 5G use cases aswell as estimate ROI. There is an
opportunity for companies to partnerwith suppliers to experiment.

Limited device
ecosystem andinteroperability
New technologies tend to have growing
pains of availability, interoperability
and compatibility of devices andinfrastructure. The current lack of 5G
compatible devices is expected to be
temporary: it is likely to be resolved
as the 5G ecosystem matures.65
Experts noted that although 5G-readysmartphones and home broadband
devices are becoming available inconsumer markets, products suitablefor industrial and business use
cases are not as easy to come by.
Some experts note that the issue

creates a chicken-and-egg situation:an organisation has little incentive
to invest in 5G if 5G devices aren’t
available. Others note that 5G-enabled
devices would need to be backward
compatible with 4G. This may,
however, come with security risks.66
Similarly, interoperability of devices
from different operating systems
has been raised as an important
issue for device manufacturers
and systems integrators to address.
For 5G systems to be used to theirfull potential, it is of key importanceto industry that the service architectureof 5G devices seamlessly integrates
with legacy systems. Several partsof the 5G ecosystem are working toachieve this.

64. https://www.capgemini.com/gb-en/wp-content/uploads/sites/3/2021/06/Final-Web-Report-5G.pdf & interview/workshop findings
65. https://www.capgemini.com/gb-en/wp-content/uploads/sites/3/2021/06/Final-Web-Report-5G.pdf
66. https://www.electropages.com/blog/2020/10/vulnerability-old-tech-how-5g-may-face-problems
29

A journey to 5G

06. Challenges to adoption

Regulatory
misalignment andstandards
Although 5G has global standards,
government approaches to 5G andedge computing differ; there is no
consistent regulatory framework acrossEurope and allocation of 5G spectrum
has been delayed. The developmentof standards furthermore slowed
down due to the Covid-19 pandemic.
This makes it harder for companies toplot a 5G business case. One expert
interviewee notes: “...given that most
initiatives involving 5G are at the
prototype hardware phase, rather thanwidely available on the market, financial
estimates today cannot tell what the
total cost of ownership will be tomorrow
because many standard specifications
are not yet implemented”.
5G Releases can also make things
confusing for industries looking to
use the technology. Industry body
3GPP creates cellular communications
standards and uses a system of parallel“Releases” which provide developers
with a stable platform for implementationof features at a given point, with additionof new functionality in subsequent
Releases.67 The four Releases alreadyannounced for 5G are Releases 15, 16,
17 and 18, but 3GPP may add more asneeds evolve over time.

Differences indefinitions
Experts also highlighted differences indefinitions as an issue. For instance,
different companies look at the term‘edge computing’ differently, which
impacts how important a private 5G
network is for the solution.
If edge computing is at the cloud level
and requires ultra low latency, then 5G
is necessary. If, however, computation
is done at the level of the device itself, aprivate 5G network may not be needed,
unless there is a large transfer of datafrom that device back to a central virtual
machine and cloud. However, specificuse cases may still require private
5G. For instance, if a company uses
IoT sensors whose data is processed
through AI/ML at the edge (without theuse of the cloud), private 5G can help
achieve near-real-time response.

67. https://www.3gpp.org/specifications/67-releases

30

A journey to 5G

06. Challenges to adoption

Impact of Covid-19 on 5G & digital innovation
The Covid-19 pandemic affectednearly every aspect of society.
Companies across the majority of
sectors were forced to switch toremote operations. Digital became
key as remote working requiredcompanies to ensure they provided
a robust IT infrastructure capableof supporting this large-scale,unprecedented change. Technology
and 5G is no exception.
Expert interviewees noted both
positive and negative impacts of
Covid-19 on 5G implementations.
The pandemic meant that some
cultural organisations accelerated
their uptake of technology, because
they were forced to find new
ways to engage with audiences.
The sector has previously
been slower to embrace virtual
experiences, but advanced networks
such as private 5G allowed Brighton
Dome & Brighton Festival (BDBF)
and others to get closer to theimmediacy and full immersion ofphysical experiences. Covid-19
has stimulated venues to focus on
exploring new ways for artists toco-create and collaborate – as seenin the example of the 5G Festival
project (see Case Study above).
BDBF believes that the 5G Festival
is a genuine “engine for innovation”.68
The pandemic also accelerated
some governments’ 5Gexperimentation. For instance,
the Italian Government’s plan tobuild back from the Covid-19 crisis,
the National Recovery and Resilience
Plan (NRRP),69 is heavily focused onenergy transition and infrastructure.
The concept of ‘smart villages’,
which was previously only
theoretically envisaged, was tested
and demonstrated during theCovid-19 crisis. In the future, thiswill allow first-hand experimentation
with a private 5G network interritories that were previously
unconnected and amongst social
communities that often have lessaccess to technological advances.70
Covid-19 meanwhile impacted 5G
negatively by slowing down thedevelopment of 5G standards –particularly the launch of Release 1671
– as well as disrupting spectrum
auctions worldwide. More generally,
cash and financial pressure reduced
investment in innovation overall.72

Many venues have real limits
for how many people they
can accommodate within
the space comfortably.
Private 5G networks may beable to create an experiencethat operates outside of
the building, whether it
starts at home or en routeto the destination. Private
5G networks could offer adifferent way of delivering
an enhanced experience that
isn’t predicated on people
being physically present
in one location.
Stephen Hilton, Founder and Director,
City Global Futures Ltd and Fellow,
University of Bristol Digital Futures
Institute

68. Interview conducted by Digital Catapult with Donna Close, BDBF
69. https://www.mef.gov.it/en/focus/The-National-Recovery-and-Resilience-Plan-NRRP/
70. Interview conducted by Digital Catapult with Stefano Brandinali, CDO, Prysmian Group
71. Release 16 is the next release of 5G standards, with key features including NPN (non-public - i.e. private networks), enhanced services for IoT and time sensitive
networking (useful for industrial automation) and Cellular IoT over 5G.
72. https://www.capgemini.com/gb-en/wp-content/uploads/sites/3/2021/06/Final-Web-Report-5G.pdf
31

A journey to 5G

07
Conclusions

32

07. Conclusions

While immediate benefits shouldn’t
be overstated, private 5G networks
and edge computing have much tooffer European end-users. Private 5G,
especially when coupled with edge
computing, can optimise operations,facilitate innovation and enable newvalue propositions. Whilst private
5G networks are on the radar forearly 5G adopters, edge computing
as a companion to 5G is not always
considered up-front. When paired,private 5G and edge computing
complement each other. The
combination is particularly relevant
when planning future infrastructure.
Part of Europe’s strength lies in
the region’s industrial verticals.
The industries’ ecosystem is advanced
in many aspects that makes it wellplaced to innovate in 5G. Businesses
can take steps now to start realising
this potential.

Key benefits – a reminder
The capabilities of a private
enterprise network• Full network control: A private
4G/5G network can be configured
to an enterprise’s and location’s
specific needs and is controlled
by the owner• Higher levels of privacy andsecurity: The ability for a 5G
network owner/operator to
manage their own security
program including configuration,
processes and procedures• Customising the network to exact
needs: The ability to configure a
network to an enterprise’s specificneeds - a benefit that public
networks can’t offer

The technological capabilities of 5G• Low latency: Desirable in the
majority of business operations,
low latency reduces responsetime for critical and non-criticaloperations• Reliability: 5G networks offer
greater reliability of service thanother forms of connectivity• Network slicing: A single
physical communication network
can be split into different, multiple,
customised virtual networks,
offering improved flexibility
and ROI• Dedicated spectrum withno interference: The lack ofinterference on private 5G
ensures greater levels ofthroughput and control forbusinesses• Full mobility: Full mobility
for connected assets to be
moved around in large areas,and experience seamlessconnectivity with a consistentlevel of performance

33

A journey to 5G

07. Conclusions

To consider whenstarting your 5G
journey
The fact that 5G and edge computing
are in such early stages of adoptionmeans that various parts of the puzzle
are not in place. As with other emerging
technologies, the full market availabilityof products will not happen overnight
but the ecosystem is rapidly developing.
As the case studies in this reportshow, it is possible to experiment now.
For those who want to stay ahead of
the curve, now is the time to join theexperimenters. The best way to learn
about solutions that utilise private 5G
and edge computing is to try them out.
When exploring the adoption of 5G andedge computing, consider:

Planning & use cases
The potential of private 5G and edge
computing is vast, but will only berealised if the technology is applied
to concrete industrial problems andopportunities. It goes without saying thattechnology investment needs a purpose.
While there are multiple benefits to 5G,
use-cases demonstrating these havebeen lacking. The number of 5G usecases is now increasing, providing pointsof reference for those interested inexperimenting with the technology.
By looking both inside and outside
their own industries, businesses canidentify early-stage case studies to help
inform their experimentation and – inturn – showcase their own trailblazing
activities. It is essential to focus effortson the specific business challenges 5G
will be used to tackle, with a clear planand use-case providing the starting point
for experimentation. Consider where theunique capabilities of these technologies
can make a difference in your businessand thoroughly plan to consider costs,
funding and ROI from there.

Building the businesscase & ROIBusinesses should expect 5G
investment to take some time to pay off,
but for many, it’s a necessary investment
for the data-hungry future. 5G requires
a long-term view of ROI, factoring in awide range of potential benefits. Morethan other technologies, it requires
businesses to weigh the balance of initialcosts of equipment, training, and runningcosts versus the long-term benefits offuture-proofing company infrastructure.
Research suggests early adopters of 5G
are predominantly large corporations
that have the capital and breadth of34

skills required to test the conditions,configurations and operational structurenecessary to benefit from 5G.
Many 5G users can reduce their initialinvestment by integrating necessarycomponents into existing IT andcommunications infrastructure.
The entire communication infrastructure
typically doesn’t need to be replaced
immediately. When considering how
private 5G experimentation andadoption can be funded, explore
a range of avenues, including
collaborative R&D, governmental
grants and self funding. Businesses
should also consider alternative waysof measuring value to not only include
measures of efficiency, but also lesstangible ones such as customer
satisfaction, brand value and improved
quality control. Immediate savings
such as reduced energy expenditure,
as well as longer term savings such as
the avoidance of fines and recalls may
be considered, as well as innovating to
attract and retain the best talent.

Invest now or wait and see?
Use of 5G and edge computing is
not widespread. Early adopters often
struggle to find real-life applications
that are relevant to their use caseand can provide useful insights
and learnings.
In fact, the number of use cases is
growing. Both interviews and desk
research suggest that manufacturing
and logistics are likely to continue tolead in early adoption of 5G, creating
more learnings, demonstrating
use cases and testing technicalrequirements that can be sharedwith other industries.

A journey to 5G

07. Conclusions

To learn more, use a multitude ofsources, from academia, non-profit
organisations and government toindustry forums both inside and outside
your own sector. Running hackathonsand engaging with academia also
provide ways to engage with the 5G
ecosystem and the innovators that aredeveloping solutions and new findings
for the market. 5G business users need
continued discourse about trials
and real-world 5G experiences.
This increases the likelihood of
successful deployments. Attending
conferences and participating incollaborative research projects that use
private 5G can be particularly valuable.
Businesses should also consider thatthe risk of experimenting early may
be significantly lower than the risk of
missing the advantage of being an

early adopter. This may be particularly
true when considering that technology
needs time to experiment with - both to
fully understand it, its benefits and to
generate ideas on the ways in which it
could work.

interoperability and compatibility
between connected devices, as wellas the development of either industryspecific or generalised standards andregulation. This can drive insight forvalid business cases and ROI.

Sharing knowledge& 5G blueprints

Embracing innovation

As more organisations begin to
deploy private 5G networks and edge
computing, early adopters can sharefindings that are relevant to theirindustry. Roadmaps to 5G may begin
to be crafted to create a blueprint for
adoption within specific verticals.
Experimenters are encouraged to shareknowledge where possible. Blueprints
for verticals can include infrastructure
requirements and ways to ensure

Innovation and new technology always
carry some risk, but also bring rewards
and future-readiness. Our interviewees
suggest that risk-averse mindsets
can hinder progress. Companies
are beginning to realise that there isenormous value in data that they aregathering through various processes
and not actively using. 5G will help
companies move to the next phaseof IoT where data is used for multiple
purposes such as digital twins.

Innovation needs aculture of openness
and courage to thrive,
enabling a business tobuild a foundation for
future growth. Proceedwith care, but don’t
let a closed mindset
prevent the progress andcompetitiveness of yourorganisation.

35

A journey to 5G

Acknowledgements& Appendix
Acknowledgements
This report has been produced by Digital Catapult on behalfof Verizon Business.
With many thanks to the business leaders consulted forthis paper:• Tomasz Witkowski, Director of Technology & Engineering,
Twickenham Film Studios (UK)• Gavin Newman, Brand Director, Metropolis Studios (UK)• Donna Close, Digital Culture Associate, Brighton Dome
& Brighton Festival (UK)• Farooq Yaqub, Innovation Engineer & XR Lead, Ford (UK)• Stephen Hilton, Founder and Director, City Global Futures
Ltd and Fellow, University of Bristol Digital Futures Institute(UK)• Paul Adams, Marketing Director, Nokia (UK)
• Esmat Mirzamany, International 5G Solution Lead, Verizon
Business (UK)• Oliver Swift, Team Leader, Technology Capability Delivery,
BAE Systems AIR, (UK)
• Adrian Talbot, Head of Centre of Excellence for Mobility& Digital Infrastructure, Ferrovial (UK/Spain)• Xavier Riley, SVP, Digital Strategy and Innovation, Standard
Industries (UK/USA)• Stefano Brandinali, Chief Digital Officer (CDO), PrysmianGroup (Italy)• Niklas Ambrosy, Volkswagen & 5G ACIA (Germany)• Petar Popovski, Professor and Head of Connectivity at
Aalborg University, Denmark

36

A journey to 5G

Private spectrum allocationin the UK and EU
The UK, Germany, and France are
all part of a short list of countries
allocating spectrum to privatecompanies without necessarily
involving MNOs.

UK
UK communications regulator Ofcom
has introduced two new mechanisms
providing localised access tospectrum bands supporting mobile
technology: Shared Access licencesand Local Access licences.
Enterprises can apply for coordinatedaccess to Shared Access bands
in specific locations, on a firstcome-first-served basis. The bands
assigned so far are:• 1800 MHz band: 1781.7 to1785 MHz paired with 1876.7
to 1880 MHz• 2300 MHz band: 2390 to2400 MHz• 3800 to 4200 MHz band• 24.25-26.5 GHz (only available
for indoor low-power licences)
Ofcom anticipated the indoor lowpower licences in the 24.25-26.5 GHzband to be suitable for industrial andenterprise users looking to deploy
their own private networks. It also
anticipates that the 3.8-4.2 GHz band
could enable 5G for private industrial
networks and is not permitting thisband to be used to provide national
mobile broadband, instead making the
3.6-3.8 GHz band available for that
purpose.73

To reach its spectrum management
objectives, Ofcom has committed tomaking spectrum available in a variety
of ways, including licences specificallyfor innovation and trials (such as the
5GTT programme).

the Future’, connected mobility, IoT,
Smart Cities and Gaming. Spectrum
is offered to businesses through an
online portal that was launched in
May 2019. In February 2020, airport
operator ADP Group and subsidiary
HubOne were granted a 10-year 4G
and 5G licence, which Air France also
benefits from. Electricity company
EDF was offered a 10-year license
for the Blayais nuclear power plant.
Mobility company TransDev was
granted spectrum in Rouen for a
four-year period (2020-2024).

Germany

European Union

The regulator Bundesnetzagentur(BNetzA) reserved 100MHz ofspectrum in the 3700MHz-3800MHz
band for use by private companies.
These are referred to as campus or
local networks in Germany, or ‘lokale
Netze’. As of October 2021, it had
allocated local 5G spectrum to 158
enterprises in various industries andverticals - from university campuses,
to manufacturers, government
departments, and multinational
consultancy firms - including Accenture,
Airbus, Audi and BMW. This spectrum
is allocated to allow enterprises tooperate 5G networks on their property,
provided that they demonstrate thatthe spectrum is used to enable specificuse cases that would otherwise not
be possible. Germany is also one of
the few countries where the regulator
publishes numbers on licenceapplications and allocations.75

The European Commission, together
with member states, develops
EU-wide spectrum policy andcoordinates spectrum harmonisationand implementation to support
innovation. EU radio spectrum policy
has three overall goals:

Through Local Access Licences,
Ofcom introduced a way of accessing
spectrum that is already licensed tomobile network operators (MNOs), but
is not being used (or planned for use) ina particular area within three years ofthe date set.74

France• Harmonising the use of radio
spectrum• Working towards a more efficientuse of spectrum• Improving the availability of
information about the current use,
future plans for use and availabilityof spectrum
Member states coordinate the useof radio spectrum by implementing
Commission decisions at a national
level. The latest Commission decision
was adopted in June 2021 regarding
Wi-Fi and harmonised the use of the
6 GHz band for wireless networks
across the EU.

French regulator ARCEP has granted
5G spectrum for experimental industrial
purposes including in ‘Industries of

73. https://www.ofcom.org.uk/__data/assets/pdf_file/0033/157884/enabling-wireless-innovation-through-local-licensing.pdf
74. https://www.ofcom.org.uk/__data/assets/pdf_file/0017/222173/spectrum-strategy-statement.pdf
75. https://www.bundesnetzagentur.de/SharedDocs/Downloads/DE/Sachgebiete/Telekommunikation/Unternehmen_Institutionen/Frequenzen/OffentlicheNetze/
LokaleNetze/Zuteilungsinhaber3,7GHz.pdf?__blob=publicationFile&v=14
37

A journey to 5G

3GPP’s 5G Releases
For each release drop, a list offeatures are defined, developed
and approved by 3GPP. Onceapproved (or when there is a “freeze”)
specifications cannot be changed andthe drop is complete.
• Release 15 (approved March2017) is the first full set of 5G
standards. It is currently themost commonly used 5G release.
Release 15 can seem limited but islargely sufficient for early testingand experimentation. It includes
speed and capacity increases
and mobile broadband, allowing
for more advanced capabilities
such as multiple input and output.
Subsequent releases provide
more of the essential features forbusiness deployments, but waiting
for these can mean less of anearly-mover advantage.

• Release 17 (expected to complete
June 2022 ) and Release 18 will
demonstrate clear benefits acrossverticals. Similar to Release 16,
Release 17 will improve on featuresfrom Releases 15 and 16, including
private 5G network capabilities.
Release 17 will also include newfeatures, such as improved battery
life and satellite access.

• Release 18 The list of features
to be defined and included willclose at the end of 2021. The
Covid-19 pandemic has delayed
the release. 3GPP's projected
timeline anticipates approval of
Release 18's initial package inDecember 2021.

• Release 16 (approved June 2018)was mainly adopted by verticalindustries such as non-terrestrial
networks (NTN), vehicle toeverything (V2X), public safety,
and Industrial Internet of Things(IIoT). Release 16 aimed to enable
5G to substitute for private wired
Ethernet, Wi-Fi, and LTE networks.

38

A journey to 5G

Contributors
With many thanks to the industry experts
consulted for this paper.

Tom Witkowski, Director ofTechnology & Engineering,
Twickenham Film Studios (UK)

Gavin Newman, Brand Director,
Metropolis Studios (UK)

Donna Close, Digital Culture
Associate, Brighton Dome (UK)

Farooq Yaqub, Innovation
Engineer & XR Lead, Fork (UK)

Esmat Mirzamany, International
5G solution lead, Verizon (UK)Oliver Swift, Team Leader,Technology Capability Delivery,
BAE Systems AIR (UK)

Adrian Talbot, Head of Centreof Excellence for Mobility &Digital Infrastructure, Ferrovial,(UK/Spain)

Petar Popovski, Professor andHead of Connectivity at Aalborg
University, Denmark

Xavier Riley, Head of Digital
Strategy & Innovation (Standard
Industries), (UK/USA)

Niklas Ambrosy, Volkswagen &5G ACIA (Germany)

Stephen Hilton, Founder andDirector, City Global Futures Ltd
and Fellow, University of Bristol
Digital Futures InstituteStefano Brandinali,
Chief Digital Officer (CDO),
Prysmian Group (Italy)

With input from:Paul Adams, Marketing
Director, Nokia (UK)
Senior Engineer at a leading
data storage service
provider39

A journey to 5G

About the authors
VerizonVerizon Communications Inc. (NYSE, Nasdaq: VZ) was formedon June 30, 2000 and is one of the world’s leading providersof technology, communications, information and entertainment
products and services. Headquartered in New York City andwith a presence around the world, Verizon generated revenues
of $128.3 billion in 2020. The company offers data, video andvoice services and solutions on its award-winning networks andplatforms, delivering on customers’ demand for mobility, reliablenetwork connectivity, security and control.

Digital Catapult
Digital Catapult is the UK authority on advanced digitaltechnology. Through collaboration and innovation, it accelerates
industry adoption to drive growth and opportunity acrossthe economy.
Bringing together an expert and enterprising community of
researchers, startups, scaleups and industry leaders to discover
new ways to solve big challenges that will unlock the UK’s future
potential. Through Digital Catapult’s specialist programmes andexperimental facilities, we make sure that innovation thrives andthe right solutions make it to the real world.
Digital Catapult’s goal is to accelerate new possibilities ineverything it does and for every business it partners with on thejourney – breaking down barriers, de-risking innovation, opening
up markets and responsibly shaping the products, services andexperiences of the future.
Digital Catapult is part of the Catapult Network that supportsbusinesses in transforming great ideas into valuable products
and services. A network of world-leading technology andinnovation centres established by Innovate UK.

© 2021 Verizon. All rights reserved. The Verizon name and logo and all other names, logos and slogans identifying Verizon’s products and services
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