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BT and Ericsson have signed a multi-million-pound new joint partnership to provide commercial 5G Private Networks for the UK market – the first agreement of its kind in the country.
The telecommunications and technology firms have signed a multi-year contract that will enable BT to sell the next generation mobile network technology products to businesses and organisations in sectors such as manufacturing, defence, education, retail, healthcare, transport and logistics.
The deal also comes just after BT announced it was investing almost £100 million over the next three years in its ‘Division X’ unit to accelerate the development of customer solutions which integrate emerging technologies like 5G, IoT, Edge Compute, Cloud and AI.
Private Networks are wireless solutions that provide secure indoor and outdoor 5G cellular coverage, making them suitable for a range of uses – particularly in environments such as factories, education campuses and other large sites where security and ultra-low latency connectivity are important.
New innovative applications and IoT capabilities can be enabled through a private 5G network to improve productivity, optimise operations and drive cost savings, such as asset tracking, predictive maintenance, connected sensors, real-time data processing, automation and robotics.
According to a forecast from MarketResearch.com, 5G Private Networks are predicted to grow at an average rate of 40 per cent a year between 2021 and 2028, by which time the market will be worth $14bn (£10.7bn). Both BT and Ericsson believe there is significant demand from UK businesses looking to take advantage of the benefits the new technology can provide.
Marc Overton, BT’s Managing Director for Division X, Enterprise, said:
“This UK-first we have signed with Ericsson is a huge milestone and will play a major role in enabling businesses’ transformation, ushering in a new era of hyper-connected spaces.
“We have combined our skill and expertise at building converged fixed and mobile networks with Ericsson’s leading, sustainable and secure 5G network equipment, to offer a pioneering new proposition that will be attractive to many industries. 5G private networks will also support smart factory processes and the advancement of Industry 4.0 which can realise significant cost savings and efficiencies for manufacturers.
“Unlike a public network, a private 5G network can be configured to a specific business’s needs, as well as by individual site or location. They also provide the foundation to overlay other innovative technologies such as IoT, AI, VR and AR, opening up a multitude of possibilities.”
Katherine Ainley, CEO Ericsson UK & Ireland added:
“This ground-breaking agreement with BT means we are together taking a leading role in ensuring 5G has a transformative impact for the UK. The high quality, fast and secure connectivity provided by Ericsson Private 5G can help organisations make all-important efficiency gains that can create safer, more productive, and sustainable business operations and help the country build global leaders in the industries and technologies of the future.”