A complex web of partners, but no clear profit model

Building a private 5G network requires assembling pieces from many different vendors and service providers. The roster can encompass operators, equipment makers, software firms, systems integrators, cloud platforms, neutral host providers, satellite companies, automation vendors, IoT suppliers and device builders, among others. "It's a lot of Legos to put together for every unique market," according to Joe Madden of Mobile Experts.

Telcos initially positioned themselves as the natural leaders for enterprise private 5G, given their spectrum holdings and decades of network operations expertise. However, as the market matured, enterprises demanded greater control and flexibility than most operators could offer. The emergence of locally licensed and shared spectrum bands—such as CBRS in the United States and dedicated enterprise spectrum in Germany and Japan—enabled businesses to deploy private 5G independently, without relying on an operator for spectrum access.

This shift redirected much of the market toward equipment vendors. Nokia, for instance, reported surpassing 1,000 private wireless network contracts by the end of 2025 and holds roughly 50% of the market according to GSA estimates. Yet in November, Nokia designated its Enterprise Campus Edge business as non-core and flagged it for possible divestment or sale—a move many read as a signal of retreat from private 5G, though the company later denied that interpretation.

When asked about its private wireless strategy, a Nokia spokesperson stated: "At Nokia, we will continue to reinforce our leadership in advanced connectivity for mission-critical applications worldwide. Team Nokia will keep developing and selling its industry-leading radios for private networks with either Nokia or third-party core platforms, to ensure maximum flexibility and access to optimal ecosystem solutions."

Nokia emphasized that successful deployments depend on a multi-partner ecosystem. "There's no one magic combination, where local spectrum & mission-critical SLAs [service level agreements] dominate or enterprise policy or national frameworks favor one model or others," the company wrote. "It depends on the deployment scale, planned scalability, compliance and roadmap & blueprint support."

In Nokia's view, telcos contribute spectrum access, national reach, managed services and enterprise sales channels. Hyperscalers provide cloud-native platforms, standardized application deployment, observability tools and hybrid edge-cloud support. Systems integrators and industrial software vendors bring customer relationships and reduce operational technology integration risks.

Key ecosystem roles

  • 5G core platform providers – firms like Druid Software supply the software layer that authenticates devices and manages prioritized connectivity within a private 5G network. These platforms typically include traffic steering, security enforcement and low-latency routing suited to industrial use. Some also focus on edge architectures that allow enterprises to run time-critical functions closer to data sources.
  • Device manufacturers – they supply specialized hardware including sensors, handhelds, robots, rugged tablets and machine controllers that generate telemetry and operational insights.
  • Neutral hosts – providers such as Boldyn Networks offer shared infrastructure that reduces costs and accelerates deployment while preserving enterprise control. Neutral hosts also simplify multi-site expansion without requiring network rebuilds.
  • Satellite operators – they extend private 5G coverage to areas lacking terrestrial networks, providing backhaul or direct connectivity for remote, offshore or challenging environments. Satellite integration with 5G cores ensures consistent performance during disasters or in regions where fiber and microwave links are impractical.

The fragmentation of the market and the treatment of private 5G as infrastructure rather than a value-generating platform has created a profitability problem. According to analysis by Sebastian Barros in February, "in many campus deployments, the effective telco capture is below $150k annually, even though the network underpins operations with orders of magnitude higher value."

China's different path and lessons for other markets

China operates the world's largest private 5G market, with approximately 64,000 networks deployed. However, its ecosystem model differs significantly from the West, as most deployments are virtual private networks delivered through network slicing rather than dedicated infrastructure.

The scale of Chinese deployment reflects coordinated support from regulators, operators and other ecosystem participants. Sam Bao, Deputy Head and Director of Technical Services for China Mobile International, the global division of China Mobile, noted the country's commitment during remarks at the Industrial Wireless Forum. "From the regulatory perspective, from China Mobile's and all the industrial peers' perspectives, we are bringing a big effort to push private 5G," Bao said. China even runs an annual competition, the Bloom Cup, to identify the most innovative private 5G applications.

CMI provides global systems integration services backed by the larger China Mobile group. "We are responsible for all the international business, including support for Chinese businesses settling abroad as well as for international businesses going into China," Bao explained.

A key difference in China's model stems from spectrum regulation. Enterprises cannot obtain their own industrial spectrum licenses, so private 5G relies on operators. Deployments typically use network slicing on public networks or hybrid arrangements where local functions like the user plane run on dedicated infrastructure while other elements remain shared.

"Carriers lead the private 5G market in China because of the spectrum licensing," Bao said. "Many countries in the world at the moment have industrial spectrum. However, most countries are still relying on the carrier to enable the private 5G deployment."

Bao suggested that China's operator-led model could be adapted elsewhere. "I think the model we've adopted can be mimicked in many countries, even in those countries that have industrial spectrum available… We work with many European carriers – they are very active in private 5G deployment."