Traficom report: The private network market is growing in Finland – with much untapped potential

Traficom investigated the market situation of private networks in Finland by interviewing companies that provide private networks and by conducting a survey of network users. Private networks are private mobile networks tailored to the unique needs of companies and organisations. Compared to the public mobile network, a private network offers higher and more even performance, creating a foundation for companies’ digitalisation and business growth. Private networks are currently used in places such as factories, ports, power plants and mines.

Advantages include high performance, reliability and security

According to the report, the key user benefits of private networks are high performance, reliability and security. “The fast and stable connection that a private network provides makes it possible to introduce technologically advanced solutions like automation and robotics in industrial plants”, explains Traficom Chief Specialist Heidi Himmanen. Network reliability makes private networks an attractive alternative to the public mobile network, for example in factories and hospitals. Information security is improved because the network user has the potential to stay in control of the data transmitted in the network.

According to the report, the growth prospects of the private network market are very promising. In the future, private networks are estimated to become more common in areas such as health care, logistics and the event sector. Although the market is growing, the growth is slowed down by high acquisition costs and low awareness of the opportunities offered by the technology. As prices start to lower and awareness increase, it is expected that there will be significant growth in the use of private networks.

Private networks develop alongside 5G and future technologies

Private networks currently use 4G or 5G technology. Although the report indicates that 4G technology is still able to meet the needs of many companies, 5G technology is expected to become more common in private networks as well. The higher capacity of the 5G network and options such as network slicing make it possible to implement increasingly high-quality services.

“The growing spectrum requirements of private networks have to be recognised and considered in European spectrum management, while also taking into account the new opportunities offered by 6G technology”, says Himmanen. 

Traficom supports the introduction of private networks by granting radio licences and influencing international spectrum management. Traficom is actively working to improve the availability and facilitate the deployment of private networks and to raise awareness of the benefits of the technology.