1166  Private 5G Networks for IoT

1166.1 Private 5G: Enterprise IoT Connectivity

NoteLearning Objectives

By the end of this section, you will be able to:

  • Design private 5G network architectures for enterprise IoT
  • Compare deployment models (standalone, hybrid, network slice)
  • Select appropriate spectrum options (CBRS, licensed, mmWave)
  • Calculate TCO and ROI for private 5G deployments
  • Integrate private 5G with existing enterprise infrastructure
  • Plan migration from Wi-Fi to private 5G for industrial IoT

1166.2 Prerequisites

Before diving into this chapter, you should be familiar with:

5G and Cellular: - 5G Advanced and 6G for IoT - 5G evolution - Cellular IoT Fundamentals - Cellular basics - NB-IoT Fundamentals - Narrowband IoT

Industrial: - Industrial Protocols Overview - OT integration - IIoT and Industry 4.0 - Context

NoteKey Takeaway

In one sentence: Private 5G provides dedicated wireless capacity with guaranteed latency and data sovereignty by deploying your own 5G infrastructure on-premises, eliminating dependence on public carriers for mission-critical industrial IoT.

Remember this: Private 5G makes sense when you need sub-10ms latency, data must stay on-site, or you cannot tolerate capacity sharing with public users; otherwise, public 5G with network slicing is more cost-effective.

1166.3 For Beginners: Understanding Private 5G

Public 5G is like a public highway: - Shared with everyone - Operator controls the rules - Traffic congestion possible - Data travels through operator network

Private 5G is like having your own private road: - Dedicated to your organization - You control the rules - Guaranteed capacity - Data stays on-site

Why Go Private?

  1. Reliability: Your factory robots don’t compete with TikTok videos
  2. Security: Sensitive data never leaves your premises
  3. Latency: Local network = faster response
  4. Control: You decide priorities and policies
  5. Coverage: Optimized for YOUR building, not the neighborhood

Real-World Example: A car factory needs 1ms response for robot control. Public 5G can’t guarantee this because: - Nearest cell tower is 500m away - Core network is in another city - Other users share the capacity

Private 5G solves this: - Base station inside the factory - Core network on-site - Only factory devices use it

1166.4 Private 5G Architecture

1166.4.1 Core Components

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graph TB
    subgraph Devices["IoT Devices"]
        D1[Sensors]
        D2[Cameras]
        D3[AGVs]
        D4[Wearables]
    end

    subgraph RAN["Radio Access Network"]
        gNB[5G Base Station<br/>gNB]
        RU[Radio Units]
        DU[Distributed Unit]
        CU[Centralized Unit]
    end

    subgraph Core["5G Core Network"]
        AMF[AMF<br/>Access & Mobility]
        SMF[SMF<br/>Session Management]
        UPF[UPF<br/>User Plane]
    end

    subgraph Edge["Edge Computing"]
        MEC[MEC Server]
        Apps[IoT Applications]
    end

    subgraph Enterprise["Enterprise Systems"]
        IT[IT Network]
        OT[OT Network]
        Cloud[Cloud Services]
    end

    D1 & D2 & D3 & D4 --> gNB
    gNB --> RU --> DU --> CU
    CU --> AMF
    AMF --> SMF --> UPF
    UPF --> MEC --> Apps
    UPF --> IT
    UPF --> OT
    MEC --> Cloud

    style Devices fill:#7F8C8D,stroke:#2C3E50
    style RAN fill:#16A085,stroke:#2C3E50
    style Core fill:#E67E22,stroke:#2C3E50
    style Edge fill:#2C3E50,stroke:#16A085
    style Enterprise fill:#7F8C8D,stroke:#2C3E50

Figure 1166.1: Private 5G end-to-end architecture from devices to enterprise systems

{fig-alt=“Private 5G architecture showing IoT Devices (sensors, cameras, AGVs, wearables) connecting to RAN components (gNB, RU, DU, CU) in teal, connecting to 5G Core (AMF, SMF, UPF) in orange, connecting to Edge Computing (MEC, applications) in navy, finally connecting to Enterprise Systems (IT, OT, Cloud) in gray. Shows complete on-premises deployment.”}

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sequenceDiagram
    participant D as IoT Device
    participant gNB as gNB (Base Station)
    participant AMF as AMF (Control)
    participant SMF as SMF (Session)
    participant UPF as UPF (User Plane)
    participant MEC as Edge Server
    participant App as Enterprise App

    Note over D,App: Private 5G Data Path
    D->>gNB: Radio transmission
    gNB->>AMF: Registration/Attach
    AMF->>SMF: Session setup request
    SMF->>UPF: Create data tunnel
    UPF-->>gNB: Tunnel established

    rect rgb(22, 160, 133)
    Note over D,MEC: Low-latency path (edge)
    D->>gNB: Sensor data
    gNB->>UPF: User plane data
    UPF->>MEC: Local processing
    MEC->>App: Real-time response
    end

This sequence diagram emphasizes the data flow path, showing how control plane (AMF/SMF) sets up sessions while user plane (UPF) handles actual IoT data routing to edge servers.

1166.4.2 Deployment Models

Model Description Best For Cost
Standalone Full private infrastructure Large enterprises, critical apps $\[$ | | **Hybrid** | Private RAN, shared core | Medium enterprises | \]$
Network Slice Virtual private on public Multi-site, mobile workforce $$
Neutral Host Shared private infrastructure Buildings, campuses $

1166.4.3 Standalone vs Hybrid vs Slice

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graph TB
    subgraph Standalone["Standalone Private"]
        SA_RAN[Private RAN]
        SA_Core[Private Core]
        SA_Spec[Dedicated Spectrum]
        SA_RAN --> SA_Core
    end

    subgraph Hybrid["Hybrid Model"]
        H_RAN[Private RAN]
        H_Core[MNO Core]
        H_Spec[Shared Spectrum]
        H_RAN --> H_Core
    end

    subgraph Slice["Network Slice"]
        S_RAN[MNO RAN]
        S_Core[Slice in MNO Core]
        S_Spec[MNO Spectrum]
        S_RAN --> S_Core
    end

    style Standalone fill:#16A085,stroke:#2C3E50
    style Hybrid fill:#E67E22,stroke:#2C3E50
    style Slice fill:#2C3E50,stroke:#16A085

Figure 1166.2: Standalone, hybrid, and network slice deployment model comparison

{fig-alt=“Three private 5G deployment models: Standalone Private in teal (all private: RAN, Core, dedicated spectrum), Hybrid in orange (private RAN with MNO core, shared spectrum), Network Slice in navy (MNO RAN with virtual slice in MNO core, MNO spectrum).”}

1166.5 Spectrum Options

1166.5.1 Available Spectrum for Private 5G

Spectrum Frequency Region License Type Bandwidth
CBRS 3.55-3.7 GHz USA Light licensing 150 MHz
n78 3.3-3.8 GHz Europe Country-specific 100-400 MHz
n79 4.4-5.0 GHz Japan, China Licensed 100-400 MHz
mmWave 24-28 GHz Global Licensed/shared 400+ MHz
Unlicensed 5-6 GHz Global Unlicensed 500+ MHz
Shared Varies Various Dynamic sharing Varies

1166.5.2 CBRS Deep Dive (USA)

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graph TB
    subgraph CBRS["CBRS Spectrum (3.55-3.7 GHz)"]
        T1[Tier 1: Incumbent<br/>Navy Radar, FSS]
        T2[Tier 2: PAL<br/>Priority Access License<br/>10 MHz channels]
        T3[Tier 3: GAA<br/>General Authorized Access<br/>No license needed]
    end

    T1 -->|Protected from| T2
    T2 -->|Protected from| T3

    SAS[Spectrum Access System<br/>Coordination]

    SAS --> T1
    SAS --> T2
    SAS --> T3

    style T1 fill:#c0392b,stroke:#2C3E50,color:#fff
    style T2 fill:#E67E22,stroke:#2C3E50,color:#fff
    style T3 fill:#16A085,stroke:#2C3E50,color:#fff
    style SAS fill:#2C3E50,stroke:#16A085,color:#fff

Figure 1166.3: CBRS three-tier spectrum sharing with SAS coordination

{fig-alt=“CBRS spectrum tiers: Tier 1 Incumbent (Navy Radar, FSS) in red with highest protection, Tier 2 PAL (Priority Access License, 10 MHz channels) in orange with licensed protection, Tier 3 GAA (General Authorized Access, no license) in teal as opportunistic use. Spectrum Access System coordinates all tiers.”}

1166.5.3 Spectrum Selection Guide

Use Case Recommended Spectrum Reasoning
Factory floor CBRS (GAA/PAL), n78 Indoor, predictable environment
Campus Licensed or PAL Outdoor, reliability needed
Warehouse mmWave High density, short range OK
Oil/Gas remote Low-band licensed Long range, fewer obstacles
Temporary site GAA, unlicensed Quick deployment, lower cost

1166.6 Design Considerations

1166.6.1 Coverage Planning

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graph TB
    subgraph Planning["Coverage Design Factors"]
        Area[Coverage Area<br/>Size and shape]
        Obstacles[Obstacles<br/>Walls, machinery]
        Density[Device Density<br/>Devices per m²]
        Throughput[Throughput Needs<br/>Total bandwidth]
        Latency[Latency Requirements<br/>Edge placement]
    end

    Area --> Calc[Cell Count<br/>Calculation]
    Obstacles --> Calc
    Density --> Calc
    Throughput --> Calc
    Latency --> Edge[Edge Server<br/>Location]

    Calc --> RUs[Radio Unit<br/>Placement]
    Edge --> RUs

    style Planning fill:#16A085,stroke:#2C3E50
    style Calc fill:#E67E22,stroke:#2C3E50,color:#fff
    style RUs fill:#2C3E50,stroke:#16A085,color:#fff

Figure 1166.4: Private 5G coverage and capacity planning factors

{fig-alt=“Coverage planning factors: Coverage Area, Obstacles, Device Density, Throughput Needs feed into Cell Count Calculation, Latency Requirements inform Edge Server Location, both contribute to Radio Unit Placement decisions.”}

1166.6.2 Capacity Planning Formula

Cells Required:

Cells = max(Coverage_cells, Capacity_cells)

Coverage_cells = Area (m²) / Cell_coverage (m²)
Capacity_cells = Total_throughput / Cell_capacity

Example:
- Factory: 50,000 m²
- Cell coverage (indoor, 3.5 GHz): 5,000 m²
- Total devices: 1,000
- Average throughput: 10 Mbps
- Cell capacity: 500 Mbps

Coverage_cells = 50,000 / 5,000 = 10 cells
Capacity_cells = (1,000 × 10) / 500 = 20 cells

Required: 20 cells (capacity-limited)

1166.6.3 Latency Architecture

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graph LR
    Device[IoT Device] -->|1ms| gNB[gNB]
    gNB -->|0.5ms| UPF[Local UPF]
    UPF -->|0.5ms| MEC[Edge Server]

    subgraph OnPrem["On-Premises (<5ms)"]
        gNB
        UPF
        MEC
    end

    MEC -->|20-50ms| Cloud[Cloud]

    style Device fill:#16A085,stroke:#2C3E50,color:#fff
    style OnPrem fill:#E67E22,stroke:#2C3E50
    style Cloud fill:#7F8C8D,stroke:#2C3E50,color:#fff

Figure 1166.5: On-premises vs cloud latency breakdown for private 5G

{fig-alt=“Latency architecture showing IoT Device with 1ms to gNB, 0.5ms to local UPF, 0.5ms to Edge Server, all within On-Premises box achieving less than 5ms total. Cloud connection adds 20-50ms, showing why edge computing is critical for low latency.”}

1166.7 Cost Analysis

1166.7.1 TCO Components

Component Capital Cost Annual Operating
Radio Units $5K-50K each Maintenance, power
Core Network $50K-500K Licensing, support
Edge Computing $20K-100K Power, maintenance
Spectrum (PAL) $0-100K Annual fees
Integration $50K-200K Ongoing support
SIM/eSIM $1-10/device Management

1166.7.2 Example: Factory Deployment

Factory: 100,000 m² (10 hectares)
Devices: 5,000 (sensors, cameras, AGVs)

Capital Costs:
- 30 Radio Units @ $15K          = $450,000
- Private Core (software)         = $200,000
- Edge Servers (2x)              = $80,000
- Integration Services           = $150,000
- Contingency (15%)              = $130,000
Total CapEx                      = $1,010,000

Annual Operating:
- Spectrum (CBRS PAL)            = $25,000
- Core licensing                 = $50,000
- Support contracts              = $80,000
- Power and facilities           = $30,000
- Staff (0.5 FTE)                = $60,000
Total OpEx/year                  = $245,000

5-Year TCO: $1,010,000 + (5 × $245,000) = $2,235,000
Per device per month: $2,235,000 / (5,000 × 60) = $7.45

1166.7.3 ROI Considerations

Benefit Quantifiable Value
Reduced downtime $100K-1M/hour avoided
Increased productivity 5-15% improvement
Reduced Wi-Fi infrastructure 30-50% less APs needed
New use cases enabled Automation, AGVs, AR
Security improvements Breach risk reduction

1166.8 Integration Patterns

1166.8.1 Wi-Fi Coexistence

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graph TB
    subgraph Devices["Device Types"]
        Critical[Critical IoT<br/>AGVs, Robots]
        Standard[Standard IoT<br/>Sensors, Cameras]
        Enterprise[Enterprise<br/>Laptops, Phones]
    end

    subgraph Networks["Network Options"]
        P5G[Private 5G<br/>URLLC Priority]
        Wi-Fi6[Wi-Fi 6E<br/>High throughput]
    end

    Critical -->|Always| P5G
    Standard -->|Preferred| P5G
    Standard -->|Fallback| Wi-Fi6
    Enterprise -->|Preferred| Wi-Fi6
    Enterprise -->|Backup| P5G

    style Critical fill:#c0392b,stroke:#2C3E50,color:#fff
    style Standard fill:#E67E22,stroke:#2C3E50,color:#fff
    style Enterprise fill:#7F8C8D,stroke:#2C3E50,color:#fff
    style P5G fill:#16A085,stroke:#2C3E50,color:#fff
    style Wi-Fi6 fill:#2C3E50,stroke:#16A085,color:#fff

Figure 1166.6: Private 5G and Wi-Fi coexistence by device criticality

{fig-alt=“Wi-Fi and 5G coexistence strategy: Critical IoT (AGVs, Robots) in red always use Private 5G, Standard IoT in orange prefers 5G with Wi-Fi fallback, Enterprise devices in gray prefer Wi-Fi 6E with 5G backup. Shows differentiated network assignment by device criticality.”}

1166.8.2 OT Network Integration

Integration Point Approach
SCADA 5G to Ethernet gateway
PLCs RedCap or LTE-M modules
HMIs Wi-Fi/5G dual-mode
Historians Edge to cloud sync
MES/ERP 5G core to enterprise LAN

1166.9 Worked Examples

NoteWorked Example: Private 5G Coverage Planning for Manufacturing Facility

Scenario: A semiconductor fabrication plant needs private 5G to support automated guided vehicles (AGVs), real-time machine monitoring, and augmented reality maintenance. The facility requires sub-10ms latency for AGV control and 99.999% reliability. Calculate the number of radio units, spectrum requirements, and deployment architecture.

Given: - Facility: 50,000 sqm cleanroom (250m x 200m) with 5m ceiling - Devices to support: - 50 AGVs requiring <10ms latency and 5 Mbps each - 500 machine sensors sending 1 KB every 10 seconds - 20 AR headsets requiring 50 Mbps each during maintenance sessions (max 5 concurrent) - Environmental factors: Cleanroom with metal equipment, no outdoor coverage needed - Spectrum: CBRS available (USA location) - Deployment model: Standalone private 5G (data sovereignty required)

Step 1: Calculate coverage-based radio unit count

Indoor 5G coverage (mid-band 3.5 GHz):
- Typical cell radius in industrial environment: 50-80m
- Cell coverage area: π × 65² = ~13,000 sqm (using 65m avg)
- Derating for metal equipment: 30% reduction → 9,100 sqm effective

Coverage-based cells: 50,000 / 9,100 = 5.5 → 6 cells minimum
Add overlap for handover (AGVs): 6 × 1.3 = 7.8 → 8 cells

Step 2: Calculate capacity-based radio unit count

Bandwidth requirements (simultaneous):
- AGVs: 50 × 5 Mbps = 250 Mbps (constant, safety-critical)
- Sensors: 500 × 1 KB / 10s = 50 KB/s = 0.4 Mbps (trivial)
- AR headsets: 5 × 50 Mbps = 250 Mbps (peak, maintenance windows)

Total peak: 250 + 0.4 + 250 = 500.4 Mbps

CBRS capacity per cell (40 MHz, TDD):
- Theoretical: 300 Mbps downlink
- Practical with 30% efficiency: 210 Mbps per cell

Capacity-based cells: 500.4 / 210 = 2.4 → 3 cells minimum

Limiting factor: Coverage (8 cells), not capacity

Step 3: Design spectrum allocation

CBRS spectrum plan (150 MHz available, 3.55-3.7 GHz):
- AGV traffic (URLLC): 20 MHz dedicated slice, low latency config
- Sensor traffic (mMTC): 10 MHz shared, high device density
- AR traffic (eMBB): 40 MHz when active, shared with sensors

Total required: 70 MHz (leaves 80 MHz for future expansion)

Spectrum Access System (SAS) registration:
- PAL license: 2 × 10 MHz (20 MHz total) for AGV priority
- GAA: 50 MHz for sensors and AR (best effort, but indoor = reliable)

Step 4: Architect for sub-10ms latency

Latency budget breakdown:
- Radio access (air interface): 1-2ms (5G NR)
- Fronthaul (RU to DU): 0.5ms (fiber)
- Backhaul (DU to UPF): 0.5ms (fiber)
- UPF processing: 0.5ms (local breakout)
- Edge application: 2-3ms (on-premises MEC)
- Return path: ~3ms (symmetric)

Total round-trip: 8-10ms ✓

Architecture requirements:
- Deploy UPF (User Plane Function) on-premises (not in carrier cloud)
- MEC server co-located with 5G core (same rack)
- AGV control application on MEC (not in data center)
- Direct fiber from radio units to local switch (no hops)

Step 5: Calculate 5-year cost

Capital Costs:
- 8 Radio Units @ $20,000 each        = $160,000
- Private 5G Core (software license)  = $150,000
- MEC Server (edge compute)           = $50,000
- Network switches + fiber            = $40,000
- SAS certification + setup           = $10,000
- Integration and commissioning       = $90,000
Total CapEx                           = $500,000

Annual Operating:
- CBRS PAL license (20 MHz, local)    = $15,000
- Software maintenance (core)         = $30,000
- Support contract                    = $25,000
- Power + cooling                     = $10,000
Total OpEx/year                       = $80,000

5-Year TCO: $500,000 + (5 × $80,000) = $900,000
Per device per month: $900,000 / (570 × 60) = $26.32

Result:

Specification Value
Radio Units 8 (coverage-limited)
Spectrum 70 MHz CBRS (20 MHz PAL + 50 MHz GAA)
Latency (AGV) <10ms round-trip
Capacity 500 Mbps peak
Reliability 99.999% (standalone, redundant core)
5-Year TCO $900,000

Key Insight: This deployment is coverage-limited (8 cells for coverage vs 3 for capacity), typical for industrial environments with metal obstructions. The critical success factor is edge architecture - placing UPF and MEC on-premises achieves sub-10ms latency that would be impossible with traffic routed through carrier networks (which add 20-50ms). The CBRS PAL license provides guaranteed capacity for safety-critical AGVs, while GAA is sufficient for indoor sensor traffic. At $26/device/month over 5 years, private 5G is more expensive than public cellular but enables use cases (URLLC for AGVs, data sovereignty) that public networks cannot guarantee.

NoteWorked Example: Private 5G vs Wi-Fi 6E ROI Analysis for Smart Hospital

Scenario: A 500-bed hospital is evaluating private 5G versus Wi-Fi 6E for connecting medical IoT devices including patient monitors, infusion pumps, and mobile workstations. The deployment must meet clinical-grade reliability requirements. Compare 5-year total cost of ownership and identify which technology suits each use case.

Given: - Hospital: 100,000 sqm across 3 buildings (main hospital, clinic, research) - Devices to connect: - 500 patient monitors (2 Mbps each, 99.99% uptime required) - 200 infusion pumps (100 Kbps each, life-critical alerts) - 300 mobile workstations (10 Mbps each, roaming between floors) - 1,000 asset tracking tags (10 KB/hour each) - Requirements: - Patient monitors: <100ms latency, zero interference tolerance - Infusion pumps: FDA Class II medical device compliance - Roaming: Seamless handover as clinicians move between units - Current infrastructure: Existing Wi-Fi 5 network (aging, interference issues)

Step 1: Analyze technology fit by device type

Device Requirements Analysis:

Patient Monitors (500):
- Criticality: HIGH (patient safety)
- Bandwidth: 2 Mbps (continuous vital signs)
- Latency: <100ms (alarm propagation)
- Mobility: Stationary (bedside)
- VERDICT: Either 5G or Wi-Fi works, but 5G URLLC provides guaranteed QoS

Infusion Pumps (200):
- Criticality: CRITICAL (medication delivery)
- Bandwidth: 100 Kbps (dose adjustments, alerts)
- Latency: <50ms (life-critical)
- Mobility: Occasionally moved between rooms
- Regulatory: Must avoid RF interference with other medical devices
- VERDICT: Private 5G preferred (dedicated spectrum, no interference from consumer Wi-Fi)

Mobile Workstations (300):
- Criticality: MEDIUM (clinician productivity)
- Bandwidth: 10 Mbps (EHR access, imaging)
- Mobility: Continuous roaming across floors/buildings
- VERDICT: Wi-Fi 6E preferred (ubiquitous coverage, lower cost per device)

Asset Tags (1,000):
- Criticality: LOW (inventory management)
- Bandwidth: Minimal (10 KB/hour)
- Battery: 5+ year requirement
- VERDICT: Wi-Fi HaLow or BLE preferred (lowest power, not 5G)

Step 2: Calculate coverage requirements

Wi-Fi 6E Requirements (for workstations + general coverage):
- Coverage area per AP (indoor hospital): 500 sqm
- APs needed: 100,000 / 500 = 200 APs
- Add 30% for density and reliability: 260 APs
- Cost: 260 × $1,500 (enterprise medical-grade) = $390,000

Private 5G Requirements (for monitors + pumps):
- Coverage area per cell (3.5 GHz indoor): 3,000 sqm
- Cells needed: 100,000 / 3,000 = 34 cells
- Add 20% for critical coverage overlap: 41 cells
- Cost: 41 × $15,000 (medical-certified) = $615,000

Hybrid approach:
- Deploy Wi-Fi 6E everywhere (260 APs): $390,000
- Deploy 5G only in patient care areas (25 cells for 75,000 sqm): $375,000
- Total infrastructure: $765,000

Step 3: Calculate 5-year TCO comparison

Option A: Wi-Fi 6E Only
- Infrastructure: 260 APs × $1,500 = $390,000
- Installation: 260 × $500 = $130,000
- Annual maintenance: $80,000/year
- Device adapters: Included (Wi-Fi built-in)
- 5-Year TCO: $390K + $130K + ($80K × 5) = $920,000

Option B: Private 5G Only
- Infrastructure: 41 cells × $15,000 = $615,000
- Core network: $200,000
- Installation: $150,000
- Spectrum (CBRS PAL): $30,000/year
- Annual maintenance: $100,000/year
- Device adapters: 2,000 × $50 = $100,000 (5G modules for devices)
- 5-Year TCO: $615K + $200K + $150K + ($130K × 5) + $100K = $1,715,000

Option C: Hybrid (Recommended)
- Wi-Fi 6E (general): 260 APs × $1,500 = $390,000
- Private 5G (critical care): 25 cells × $15,000 = $375,000
- 5G Core (smaller scale): $120,000
- Installation: $200,000
- Spectrum: $20,000/year
- Maintenance: $120,000/year
- 5G adapters (700 devices): 700 × $50 = $35,000
- 5-Year TCO: $390K + $375K + $120K + $200K + ($140K × 5) + $35K = $1,820,000

Step 4: Quantify benefits for ROI calculation

Benefit Analysis (Hybrid vs Wi-Fi-only):

Interference Reduction:
- Current Wi-Fi causes 12 patient monitor alarms/month to fail
- Each missed alarm: $50,000 average liability + patient risk
- 5G eliminates monitor interference: 12 × $50K × 12 = $7.2M/year avoided risk

Infusion Pump Reliability:
- FDA requires documented connectivity for networked pumps
- Private 5G provides audit trail + guaranteed QoS
- Enables 200 pumps to use dose error reduction software
- Medication errors prevented: Est. 50/year × $10K avg = $500K/year savings

Clinician Productivity:
- Wi-Fi 6E roaming reduces EHR "spinning wheel" wait by 30 sec/access
- 300 workstations × 50 accesses/day × 30 sec = 125 hours/day saved
- Nurse cost: $50/hour → $6,250/day → $1.5M/year productivity gain

5-Year Benefit: ($7.2M + $0.5M + $1.5M) × 5 = $46M
5-Year Additional Cost (Hybrid vs Wi-Fi): $1.82M - $0.92M = $900K
ROI: ($46M - $0.9M) / $0.9M = 5,011% (extremely positive)

Result:

Metric Wi-Fi Only 5G Only Hybrid
5-Year TCO $920,000 $1,715,000 $1,820,000
Interference Risk HIGH NONE LOW
FDA Compliance Challenging Full Full
Roaming Quality Excellent Good Excellent
ROI vs Wi-Fi Baseline Moderate 5,011%

Key Insight: The hybrid approach costs 2x more than Wi-Fi-only but provides 50x return through risk mitigation and productivity gains. Healthcare is one of the strongest use cases for private 5G because the cost of connectivity failures (patient safety, regulatory compliance, liability) far exceeds infrastructure investment. The key insight is deploying 5G only where it provides unique value (interference-free spectrum for life-critical devices) while using cost-effective Wi-Fi 6E for general connectivity. Pure 5G is overkill for mobile workstations; pure Wi-Fi is insufficient for medical devices that cannot tolerate interference from visitor smartphones. Hybrid architecture matches technology to clinical requirements.

1166.10 Understanding Check

WarningKnowledge Check

Scenario: A logistics company wants private 5G for a 500,000 m² warehouse with: - 200 AGVs requiring <20ms latency - 500 handheld scanners - 100 loading dock cameras - Integration with existing WMS (Warehouse Management System)

Questions:

  1. Which deployment model would you recommend?
  2. What spectrum would you use in the USA?
  3. How many radio units are needed?
  4. What’s the rough cost estimate?

Question: For a large warehouse with latency-sensitive AGVs and on-prem integration needs, which private 5G deployment model is typically preferred?

💡 Explanation: B. Standalone private deployments offer maximum control over latency, coverage, QoS policies, and integration with local systems/edge compute.

Question: In the USA, which spectrum option is commonly used for enterprise private LTE/5G deployments?

💡 Explanation: C. CBRS enables shared-spectrum private cellular via tiered access (PAL/GAA) coordinated by a Spectrum Access System (SAS).

Question: In the example sizing calculation, what was the limiting factor that drove the radio unit count?

💡 Explanation: C. The capacity estimate required far fewer cells than the coverage-based estimate, so coverage dominated the final radio unit count.

Question: Which cost categories are typically part of a private 5G 5-year TCO estimate?

💡 Explanation: B. TCO includes up-front infrastructure plus recurring costs like support, staffing, power/facilities, and spectrum where applicable.

1. Deployment Model: Standalone Private - AGVs need guaranteed low latency (URLLC) - High device density requires dedicated capacity - WMS integration needs local UPF - Standalone gives maximum control

2. Spectrum: CBRS with PAL + GAA - PAL for AGV priority lanes (10-20 MHz) - GAA for general coverage (40-60 MHz) - Indoor-only = no incumbent interference concerns - Cost-effective, no major licensing

3. Radio Unit Calculation:

Coverage:
- Indoor warehouse: ~3,000 m² per cell (high-density assumption)
- 500,000 / 3,000 = ~167 cells minimum

Capacity:
- 200 AGVs × 5 Mbps = 1,000 Mbps
- 500 scanners × 1 Mbps = 500 Mbps
- 100 cameras × 15 Mbps = 1,500 Mbps
- Total: 3,000 Mbps = 3 Gbps
- Per cell (CBRS 40 MHz): ~200 Mbps
- Capacity cells: 3,000 / 200 = 15 cells

Limiting factor: Coverage (167 cells)
Add 20% margin: 200 Radio Units

4. Cost Estimate:

CapEx:
- 200 Radio Units @ $10K      = $2,000,000
- Private Core                = $300,000
- Edge Servers (4x)           = $200,000
- Integration                 = $300,000
- Contingency                 = $400,000
Total CapEx                   = $3,200,000

Annual OpEx:
- CBRS PAL (5 licenses)       = $50,000
- Support/Maintenance         = $200,000
- Power/Facilities            = $100,000
- Staff (1 FTE)               = $120,000
Total OpEx                    = $470,000

5-Year TCO: $3.2M + (5 × $470K) = $5,550,000
Per device per month: $5.55M / (800 × 60) = $115

Comparison: Public 5G would cost ~$50/device/month but can’t guarantee AGV latency requirements.

1166.12 Key Takeaways

TipSummary

  1. Private 5G provides dedicated capacity, low latency, and data sovereignty

  2. Three deployment models: Standalone (full control), Hybrid (shared core), Slice (virtual private)

  3. CBRS spectrum (USA) enables affordable private 5G with PAL for priority and GAA for opportunistic

  4. Coverage and capacity both drive cell count—calculate both and use the higher

  5. Edge computing is essential for achieving sub-5ms latency

  6. TCO includes: Radio units, core network, edge, spectrum, integration, operations

  7. Wi-Fi coexistence is common—use 5G for critical, Wi-Fi for enterprise devices

1166.12.1 Private 5G Deployment Decision Framework (Variant View)

This decision tree guides enterprise architects through key considerations when evaluating private 5G deployment options:

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flowchart TD
    START(["Private 5G<br/>Deployment Decision"])
    Q1{"Data sovereignty<br/>requirement?"}
    Q2{"Latency<br/>requirement?"}
    Q3{"Budget<br/>range?"}
    Q4{"Multi-site<br/>deployment?"}
    Q5{"Control<br/>priority?"}

    STANDALONE["Standalone Private<br/>Full Control Model"]
    HYBRID["Hybrid Model<br/>Private RAN, Shared Core"]
    SLICE["Network Slice<br/>Virtual Private"]
    PUBLIC["Enhanced Public 5G<br/>With SLA"]

    STANDALONE_DETAILS["Standalone:<br/>• Full data sovereignty<br/>• Sub-5ms latency<br/>• CapEx: $500K-2M<br/>• Full infrastructure control<br/>• Highest complexity"]

    HYBRID_DETAILS["Hybrid:<br/>• Data on-premises option<br/>• 5-20ms latency<br/>• CapEx: $200K-500K<br/>• Reduced complexity<br/>• Operator support"]

    SLICE_DETAILS["Network Slice:<br/>• Virtual isolation<br/>• 10-50ms latency<br/>• OpEx: $50K-200K/year<br/>• Multi-site coverage<br/>• Operator-managed"]

    START --> Q1
    Q1 -->|"Critical"| Q5
    Q1 -->|"Preferred"| Q2
    Q1 -->|"Not required"| Q4

    Q5 -->|"Maximum"| STANDALONE
    Q5 -->|"Moderate"| HYBRID

    Q2 -->|"<10ms"| Q3
    Q2 -->|">10ms OK"| Q4

    Q3 -->|"$500K+"| STANDALONE
    Q3 -->|"$200K-500K"| HYBRID
    Q3 -->|"<$200K"| SLICE

    Q4 -->|"Yes"| SLICE
    Q4 -->|"No"| PUBLIC

    STANDALONE --> STANDALONE_DETAILS
    HYBRID --> HYBRID_DETAILS
    SLICE --> SLICE_DETAILS

    style START fill:#7F8C8D,color:#fff
    style Q1 fill:#2C3E50,color:#fff
    style Q2 fill:#2C3E50,color:#fff
    style Q3 fill:#2C3E50,color:#fff
    style Q4 fill:#2C3E50,color:#fff
    style Q5 fill:#2C3E50,color:#fff
    style STANDALONE fill:#16A085,color:#fff
    style HYBRID fill:#E67E22,color:#fff
    style SLICE fill:#3498db,color:#fff
    style PUBLIC fill:#7F8C8D,color:#fff
    style STANDALONE_DETAILS fill:#d4efdf,color:#2C3E50
    style HYBRID_DETAILS fill:#fdebd0,color:#2C3E50
    style SLICE_DETAILS fill:#d6eaf8,color:#2C3E50

Figure 1166.7: Private 5G deployment decision framework. Critical data sovereignty with maximum control leads to Standalone Private ($500K-2M CapEx, sub-5ms latency, full infrastructure). Moderate control needs or lower budget leads to Hybrid Model (private RAN with shared core, $200K-500K, 5-20ms latency). Multi-site or budget-constrained leads to Network Slice (virtual isolation, $50K-200K/year OpEx, 10-50ms latency). No sovereignty requirements with single site may use enhanced public 5G with SLA. {fig-alt=“Private 5G decision flowchart. Data sovereignty critical with maximum control preference: Standalone Private (full sovereignty, sub-5ms latency, $500K-2M CapEx, full control, highest complexity). Data sovereignty preferred with latency <10ms and $500K+ budget: Standalone; $200K-500K: Hybrid Model (private RAN, shared core, 5-20ms, reduced complexity); <$200K: Network Slice. Multi-site deployment: Network Slice (virtual isolation, 10-50ms, $50K-200K/year OpEx, operator-managed). No sovereignty requirement, single site: Enhanced Public 5G with SLA.”}

1166.12.2 Private 5G vs Wi-Fi Comparison (Variant View)

This comparison helps enterprises evaluate when to use Private 5G versus Wi-Fi 6E for industrial IoT applications:

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graph TB
    subgraph Header["Private 5G vs Wi-Fi 6E Selection"]
        direction LR
        H1["Use Case"]
        H2["Private 5G"]
        H3["Wi-Fi 6E"]
    end

    subgraph Critical["Mission-Critical Applications"]
        C_5G["Private 5G Preferred:<br/>• URLLC: 1ms, 99.999%<br/>• Guaranteed QoS<br/>• No interference<br/>• Licensed/dedicated spectrum"]
        C_USE["Applications:<br/>• Robot control<br/>• Autonomous vehicles<br/>• Safety systems<br/>• Real-time control"]
    end

    subgraph Balanced["Balanced Performance"]
        B_BOTH["Either Works:<br/>• 5G: 5-10ms latency<br/>• Wi-Fi 6E: 2-5ms typical<br/>• Both: High throughput<br/>• Cost drives decision"]
        B_USE["Applications:<br/>• Video surveillance<br/>• AR/VR headsets<br/>• Industrial sensors<br/>• Connected machinery"]
    end

    subgraph Enterprise["Enterprise Connectivity"]
        E_WIFI["Wi-Fi 6E Preferred:<br/>• Ubiquitous devices<br/>• Lower cost<br/>• Existing infrastructure<br/>• Easier management"]
        E_USE["Applications:<br/>• Laptops, tablets<br/>• Barcode scanners<br/>• Office IoT<br/>• Guest access"]
    end

    subgraph Decision["Hybrid Recommendation"]
        D1["Deploy Both:<br/>• Private 5G for critical OT<br/>• Wi-Fi 6E for enterprise IT<br/>• Unified management<br/>• Cost optimization"]
    end

    Header --> Critical --> Balanced --> Enterprise --> Decision

    style Header fill:#f9f9f9,stroke:#2C3E50
    style Critical fill:#16A085,color:#fff
    style Balanced fill:#E67E22,color:#fff
    style Enterprise fill:#2C3E50,color:#fff
    style Decision fill:#7F8C8D,color:#fff
    style C_5G fill:#d4efdf,color:#2C3E50
    style C_USE fill:#d4efdf,color:#2C3E50
    style B_BOTH fill:#fdebd0,color:#2C3E50
    style B_USE fill:#fdebd0,color:#2C3E50
    style E_WIFI fill:#d6eaf8,color:#2C3E50
    style E_USE fill:#d6eaf8,color:#2C3E50
    style D1 fill:#e8e8e8,color:#2C3E50

Figure 1166.8: Private 5G vs Wi-Fi 6E selection guide. Mission-Critical (teal): Private 5G preferred for URLLC (1ms, 99.999% reliability), guaranteed QoS, no interference, and licensed spectrum. Applications: robot control, autonomous vehicles, safety systems. Balanced Performance (orange): Either works with 5G at 5-10ms or Wi-Fi 6E at 2-5ms typical, cost drives decision. Applications: video surveillance, AR/VR, industrial sensors. Enterprise (navy): Wi-Fi 6E preferred for ubiquitous device support, lower cost, existing infrastructure. Applications: laptops, tablets, barcode scanners, guest access. Recommendation: Deploy both - 5G for critical OT, Wi-Fi for enterprise IT, unified management. {fig-alt=“5G vs Wi-Fi decision matrix. Mission-critical applications (robot control, autonomous vehicles, safety systems): Private 5G preferred with URLLC 1ms latency, 99.999% reliability, guaranteed QoS, no interference, licensed spectrum. Balanced performance (video surveillance, AR/VR, industrial sensors): Either works - 5G 5-10ms, Wi-Fi 6E 2-5ms typical, both high throughput, cost drives decision. Enterprise connectivity (laptops, tablets, scanners, guest access): Wi-Fi 6E preferred for ubiquitous devices, lower cost, existing infrastructure, easier management. Hybrid recommendation: deploy Private 5G for critical OT operations and Wi-Fi 6E for enterprise IT, with unified management platform for cost optimization.”}

1166.13 What’s Next

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