Private 5G networks critical for digital transformation

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KUALA LUMPUR: Private 5G networks will be critical enablers of digital transformation for large enterprises in many different industries across Southeast Asia over the next five years.

BMI, a unit of Fitch Solutions, said in Malaysia, this would pivot around collaborations between enterprises and licensed mobile network operators as spectrum was currently tied to the individual operators (3G/4G) and the state-owned 5G platform, Digital Nasional Bhd.

“If more enterprises were to deploy private 5G networks, this would make the planned second state-owned 5G platform more commercially viable than it would otherwise be, and provide the government with a direct pipeline to all industries looking to leverage 5G for their technological transformations,” it said in a note yesterday. Hence, BMI believed that the first steps being made by Petronas were crucial to encourage other enterprises — public and private — to follow suit.

Petronas has deployed a 5G private network at a key regasification site in Melaka to achieve operational efficiencies and support advanced connected services development for Internet of Things applications.

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The deployment, the first of a private 5G network being used for enterprise-grade applications in Malaysia, is intended to further the country’s wider digital transformation agenda. BMI highlighted that 5G was only one of many wireless connectivity technologies available to enterprises.

Alternatives such as WiFi6 or WiFi7, as well as low-power wide area network (LP-WAN) solutions can also be used to facilitate applications and solutions that Petronas and others would want to implement over the next decade. “These can be used in tandem with 5G or as standalone platforms in different parts of the business.

This opens up the sector to specialised solutions providers rather than making an enterprise dependent on the existing public mobile network operators,” it added. BMI said private 5G would support automation and control advancement, raise operational efficiencies via applications such as remote logistics, enhance workers’ safety and location-specific workflow processes, and the use of low-latency critical infrastructure through smart sensors.

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“Agribusiness, infrastructure, healthcare, manufacturing, logistics, heavy industries, and education sectors will be looking to adopt wireless technologies over the coming years,” it added. BMI said Petronas’ successful deployment could stimulate demand across these sectors, particularly if there is government support. – BERNAMA 

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