Evolution of Sales Models for Private 5G Networks: From Leading Japanese Local 5G Suppliers

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Report
17 Pages
February 2024
Region: Japan
Market Intelligence & Consulting Institute (MIC)
ID: 5949222

This report provides an in-depth analysis of the diverse sales models aligned with vertical-specific requirements. It delves into three major sales models currently adopted by local 5G suppliers in Japan and explores the future trajectory of private 5G network sales models.

The commercialization of 5G has sparked considerable interest in the private 5G network market among suppliers. However, the adoption of private networks faces challenges, with cost being a significant barrier for businesses across different sectors. To address this, suppliers have introduced diverse sales models to cater to varying needs. In the evolving Japanese local 5G market, which has matured over three years, suppliers offer a spectrum of solutions with different sales approaches, ranging from outright purchases to subscription-based models.

1. Diverse Private 5G Network Sales Models Based on Vertical Needs

1.1 Private Network Adoption Involves Various Costs, Including CapEx and OpEx
1.2 Initial Deployment Costs a Key Adoption Obstacle for Businesses in Different Verticals
1.3 Suppliers Offer-as-a-Service and Subscription Models to Reduce CapEx for Different Verticals

2. Diverse Sales Models from Japan's Local 5G Suppliers

2.1 Increased Applications and Demonstration Cases in Japan's Local 5G, with Diversifying Supplier Types
2.2 Different Japan's Local 5G Suppliers Offering Varied Sales Models
2.2.1 Outright Purchase: Equipment Sales-oriented, Primarily Involving CapEx (e.g. Equipment Supplier Fujitsu)
2.2.2 Combination of Outright Purchase and Operation
2.2.3 Combination of Operation and Subscription
2.3 Different Sales Models Offer Flexibility in Cost Amortization for Business of Different Verticals

3. Analyst's Perspective

3.1 Suppliers Increase No-Capex Subscription Plans to Reduce Initial Deployment Costs
3.2 Japanese Local 5G Suppliers Offer Diversified Sales Plans
3.3 Convincing Businesses Private 5G Networks Can Create Benefits as a Primary Goal of Suppliers

AppendixList of Companies

List of Tables

Table 1: Pricing of NTT East's Gigaraku 5G Solution
Table 2: Summary of Private 5G Network Sales Plans by Japanese Local 5G Suppliers

List of Figures

Figure 1: Top Four Barriers for Enterprises Implementing Private 5G Networks
Figure 2: Cost Control Strategies and Cost Models for Private 5G Networks
Figure 3: Nokia's Subscription-Based DAC PW Compact Private Network Solution
Figure 4: Trends in the Number of Japanese Local 5G Applications
Figure 5: Fujitsu PW300 Standard and Simplified Versions
Figure 6: NEC Sub 6 Starter Pack Structure
Figure 7: Private 5G Network Rental Services by SMFL Rental
Figure 8: Types of Private 5G Network Sales Plans by Japanese Local 5G Suppliers

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

NTT
Cisco
Ehime CATV
Fujitsu
Hitachi
HPE
Mitsubishi
NEC
Nokia
NS Solutions
Panasonic Connect
Sharp
SMFL Rental
Sprint
Yokogawa Electric

Methodology

Primary research with a holistic, cross-domain approach

The exhaustive primary research methods are central to the value that the analyst delivers. A combination of questionnaires and on-site visits to the major manufacturers provides a first view of the latest data and trends. Information is subsequently validated by interviews with the manufacturers' suppliers and customers, covering a holistic industry value chain. This process is backed up by a cross-domain team-based approach, creating an interlaced network across numerous interrelated components and system-level devices to ensure statistical integrity and provide in-depth insight.

Complementing primary research is a running database and secondary research of industry and market information. Dedicated research into the macro-environmental trends shaping the ICT industry also allows the analyst to forecast future development trends and generate foresight perspectives. With more than 20 years of experience and endeavors in research, the methods and methodologies include:

Method

Component supplier interviews
System supplier interviews
User interviews
Channel interviews
IPO interviews
Focus groups
Consumer surveys
Production databases
Financial data
Custom databases

Methodology

Technology forecasting and assessment
Product assessment and selection
Product life cycles
Added value analysis
Market trends
Scenario analysis
Competitor analysis

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Table of Contents

Companies Mentioned (Partial List)

Methodology

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