5G or Wifi for enterprise networking? Why not both?
Opinion

5G or Wifi for enterprise networking? Why not both?

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Sylwia Kechiche, Principal Industry Analyst, Ookla investigates

 Over the last 20 years, despite significant technological disruption across the industrial landscape, Wi-Fi has remained the network connectivity solution for enterprises.

However, this dominance is now being challenged as more enterprises recognise the potential of wireless networking, specifically, 5G.

This shift is driven by the fact that 5G has been designed with enterprise needs in mind, which might lead to a transformation in the current status quo.

Nokia and Global Data recently surveyed decision makers at multinational companies using wireless networks. They found that 80% recognised the need for Wi-Fi networks to be complemented by alternative edge networking solutions.

This enhancement is essential to leverage the benefits of low latency and on-premise data processing, especially in Industry 4.0 mission-critical use cases.

These decision makers emphasised that integrated networking solutions are pivotal for improving cybersecurity, lowering costs, boosting efficiency and achieving many other benefits.

The findings from this survey reflect how enterprise networking needs/requirements have changed.

WiFi and 5G technologies complement each other in modern enterprise networks, with 5G adding a new dynamic to replace legacy network functions where greater flexibility is required.

It’s important to look at the characteristics of these two networking technologies to understand where their synergies lie.

 A tale of two technologies

The introduction of 5G and Wi-Fi 6/6E has narrowed historical performance gaps between mobile and Wi-Fi networks.

SpeedTest Intelligence data from Ookla shows that in Q2 2023, the median 5G download speed was 201.08 – 7.25 times faster than 4G – while the WiFi 6 download speed of 267.47 Mbps was 2.34 times better than WiFi 5.

Both speeds are good enough to facilitate the transfer and access of large files, as well as accelerate data-intensive applications.

5G and Wi-Fi remain distinct technologies in various aspects. Wi-Fi networks operate on unlicensed spectrum, which means they can be used by a wide range of devices and are typically less complex and expensive to set up. In contrast, deploying private 5G networks typically involves the use of licensed spectrum, which is less accessible.

But 5G offers significant advantages in terms of lower latency, enhanced mobility, increased capacity and improved security.

Fixed cabling, Ethernet and Wi-Fi will continue to play a critical role supporting legacy systems, especially as the Internet of Things (IoT) becomes more prevalent in enterprise settings.

This is particularly relevant in industrial environments with slower upgrade cycles. In such cases, 5G emerges as a solid option to deliver the low latency connectivity that’s necessary for Operational Technologies, which require high volume, high reliability, mobility and always-on connectivity to carry out direct monitoring and control of industrial equipment.

The advantages of combining Wi-Fi and 5G extend beyond managing upgrade cycles. It’s the optimal solution for enterprises to utilise more data-intensive applications and IoT devices to unlock greater efficiency, reliability and data-driven decision making across their operations.

Harnessing synergies

Enterprises are increasingly looking to IoT to improve their operations, which puts a higher demand on networks. One crucial requirement is the ability to connect more devices simultaneously without compromising performance.

Wi-Fi 6 is up to the task, with the capacity to support around 2,000 devices per access point at any given time. 5G on the other hand, offers a connection density of up to one million per km2, making it an even more powerful option.

Another key enterprise requirement is to have reliable connectivity with robust failover mechanisms, even in high-demand situations. This is especially true for capital intensive industries such as manufacturing, where mission-critical data needs to be constantly flowing to prevent costly downtime. While both 5G and Wi-Fi 6 offer failover mechanisms, they also provide improved redundancy.

By adding redundancy, enterprises can reduce their reliance on wired connections for critical operational technologies, thus creating more flexibility in their network.

It also provides an opportunity to enhance coverage for enterprise applications that require mobility, like robotics or smart factory IoT networks, with 5G’s strong large-area network coverage.

Synergies between Wi-Fi and 5G offers enterprises the opportunity to maximise the advantages of digitising their operations.

A preference for control

When discussing the future of enterprise networks, it is important to consider the critical role that private networks play. Enterprises have long been attracted to the idea of deploying private networks to increase control and security by isolating their data from public networks and keeping it on premises.

The advent of 5G Standalone (SA) takes this proposition to the next level. Compared to WiFi, private 5G networks provide significantly stronger security. 3GPP Release 16 of 5G New Radio (NR) supports a wider set of Industrial IoT use cases, thanks to improvements in latency and reliability.

This is an excellent foundation for 5G SA, which enables greater network virtualisation, including network slicing; the ability to have a ‘virtual’ network optimised for the specific needs of a particular application or service.

Enterprises can harness the most cutting edge enterprise connectivity applications with full control using a private 5G network, especially where 5G SA is in play. Think virtual reality, augmented reality, real-time video analytics and holographics. Moreover, the integration of NR-reduced capability (RedCap) devices further enhances cost efficiency and offer precise positioning.

Although 5G private networks offer numerous benefits, they are not necessarily the best option for every enterprise. To use these networks, an enterprise must have industrial 5G-ready devices that use chipsets based on Release 16 of the 3GPP standard, which have only recently been introduced to the market. It is also important to note that there are multiple ways to deploy private networks, each with their own unique advantages and disadvantages.

Therefore, enterprises must have a clear understanding of their networking requirements and capabilities to choose the most suitable deployment method for their needs.

Applying the right mindset

It’s clear that both Wi-Fi and 5G will play significant roles in future enterprise networks. They will serve as wireless connectivity options that complement existing wired networks, which eventually will be upgraded.

To fully leverage the advantages of digitising operations in line with IoT proliferation, enterprises need to set up networks tailored to their unique requirements, capable of producing the necessary data to apply intelligence to. Rather than fixating on technology, the key to success lies in prioritising problem solving and centering on specific use cases. This approach will allow businesses of all types and sizes to see the benefits that 5G, Wi-Fi 6/6E and, in the near future, WiFi 7 offer.

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