NTT and Cisco create private 5G juggernaut

The news: Cisco is tapping NTT to help expand its private 5G services aimed at automotive, logistics, healthcare, retail, and public sector verticals, per VentureBeat.

Benefits of accelerating 5G edge connectivity: The joint venture between two networking giants has the potential to help Cisco and NTT’s existing customers easily integrate private 5G into their existing LAN/WAN/cloud infrastructures.

• Bolstering security will be the largest driver of low-latency and resilient private 5G in private infrastructure as data breaches, phishing scams, and ransomware incidents are on the rise.
• Other benefits include improved machine vision, predictive analytics, push-to-talk “walkie-talkie” communications, automated guided vehicles (AGVs), and always-connected PCs for frontline workers.
• NTT has the world’s first fully managed enterprise private 5G platform, and Cisco has been collaborating with Intel to build “global 5G innovation centers” to test 5G applications and use cases.

By the numbers: 

• 48% of all private LTE/5G networks in the public domain use 5G as of October 2022, up from 43% at the end of 2021, per Analysys Mason.
• GSMA forecasts that operators are expected to spend $900 billion worldwide between 2021 and 2025 on mobile capital expenditures, nearly 80% of which will be in 5G. 
• The global private 5G market is expected to exceed $8 billion by 2026, with a compound annual growth rate of 35.7% from 2022, per IDC.

The time is right: “CIOs everywhere … want more secure networks, they want dedicated [network] capacity, they want dedicated spectrum. They want service-level commitments, and they want it all as a service,” said T-Mobile president and CEO Mike Sievert.

Key takeaway: NTT and Cisco’s partnership in private 5G as a service multiplies the potential for adoption since existing customers are likely to trust companies they already work with. 

• Having two of the biggest networking companies working in tandem will also attract new customers seeking reputable private 5G solutions. 
• Consolidation between players could be an upcoming trend as private 5G and edge computing gain momentum.

Dig deeper: Read our Q&A with Shahid Ahmed, Group EVP at NTT, on growth opportunities in private 5G in enterprise.

This article originally appeared in Insider Intelligence's Connectivity & Tech Briefing—a daily recap of top stories reshaping the technology industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.

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