From Shared to Dedicated: Exploration and Practice of Independent Private 5G Networks

As 5G technology matures and costs decrease, 5G private networks are gaining broader adoption across industries. The 5G private network market size is expected to reach US$3.06 billion in 2025 and grow at a CAGR of 43.60%, reaching US$18.68 billion by 2030. China has been proactive in this space, using 5G private networks to drive the digital transformation of its real economy.

Independent Private 5G Networks Enter a New Phase with Three Key Advantages

Six years after the commercial launch of 5G, China has deployed over 4.39 million 5G base stations and initiated over 40,000 industry-specific 5G private network projects across 41 sectors. Operators have utilized technologies like network slicing and edge computing to create virtual private networks, which have achieved large-scale application in fields like smart manufacturing and intelligent port operations. In 2024, the three major operators reported over 60% year-on-year growth in 5G private network revenues.

While virtual private networks offer rapid deployment and cost efficiency by utilizing operators' public network resources, they fall short of meeting the demands of numerous vertical industries and the fragmented B2B market. Industrial giants require strict control over networks and data isolation; sectors such as manufacturing, power, and railways need to ensure ultra-high reliability in extreme environments; meanwhile, small and medium-sized enterprises are seeking a balance between affordability and technical capability. The industry is actively exploring innovative models for independent private 5G networks.

Chinese policy has consistently supported the development of independent private networks. The Action Plan for the Innovative Development of the Industrial Internet (2021-2023) called for "exploring construction and operation models for 5G networks." The upgraded "5G + Industrial Internet" 512 Project Action Plan, released by the Ministry of Industry and Information Technology (MIIT) in 2024, proposed promoting the orderly pilot deployments of industrial independent private 5G networks. Furthermore, the national industrial and informatization work conference identified "advancing the construction of industrial independent private 5G networks" as a key task for 2025.

Compared to widely used virtual private networks, independent private 5G networks rely on dedicated resources and operate separately from public networks. All 5G network elements (NEs) and management systems are specifically built for enterprise use. What makes independent private 5G networks unique? Their features and advantages can be highlighted across three key dimensions:

• From shared to dedicated resources

Virtual private networks rely on public network slicing or local offloading from operators to achieve resource sharing and logical isolation. In essence, they still use dynamically allocated resources from a shared pool. In contrast, independent private networks are physically isolated through dedicated infrastructure, giving enterprises full control over resources and completely avoiding public network traffic interference.

• Architecture autonomy: from "restricted by public networks" to "deep customization"

Virtual private networks are constrained by public network architectures, making industry adaptation challenging, especially for in-depth industrial protocol integration and customized industry solutions. In contrast, independent private networks can be deeply customized to meet industry-specific requirements—for example, supporting seamless integration of time-sensitive networking (TSN) with industrial Ethernet protocols, and incorporating edge computing and digital twin modules to achieve OT/IT convergence. In addition, they allow enterprises to independently manage and optimize network resources.

• Data and security control: from "logical isolation" to "physical independence"

A virtual private network relies on network slicing or local offloading to achieve logical isolation. Data is transmitted over local or public networks according to predefined rules. In some scenarios, data falls outside the enterprise’s direct control. Moreover, as the underlying infrastructure is shared, its security protection follows the existing design.

Independent private networks establish data and security boundaries through physical isolation, and all data can be independently controlled. Enterprises can set strict security policies from air interface encryption to data transfer, enabling true autonomy over both data and security.

ZTE Enriching Its Independent Private 5G Network Solutions

ZTE continues to enrich its private network solutions to meet the customized, fragmented, and diverse demands of various industries. By upgrading 5G networks across multiple dimensions—including expanding depth and breadth, enhancing quality, and reducing costs—ZTE strengthens both its network technologies and product offerings to deliver tailored independent private 5G network solutions.

In terms of network technologies, ZTE provides flexible and customizable 5G private network solutions through a multi-tiered architecture: virtual private networks (using 5G slicing for basic isolation), hybrid private networks (leveraging UPF/NodeEngine for efficient local data offloading), and independent private networks (featuring end-to-end dedicated deployment). These diverse private network options cater to various needs of different industries. Moreover, ZTE is advancing its 5G-A technology, offering ultra-high bandwidth (up to 10 Gbps), millisecond-level latency, microsecond-level jitter, and high reliability to support core production operations. By integrating reduced capability (RedCap) technology, ZTE reduces terminal costs and power consumption, meeting the demands of large-scale industrial connectivity (see Fig. 1).

In terms of product offerings, ZTE introduces a series of industry-specific products (see Fig. 2), with enhancements in functionality, coverage, and positioning. Functional capabilities have evolved from communication to integrated computing and communication, enabling hyper-converged, lightweight independent private 5G network products. Coverage has been extended to support diverse, high-risk production environments through the provision of explosion-proof, movable campsite base stations. Moreover, the solution positioning has shifted from network-oriented to service-oriented, offering IT-driven operational platforms (e.g., ToBeEasy), portable 5G testers, and 5G TSN industrial gateways to enable rapid deployment and IT-based operations.

Independent Private 5G Network Deployment Delivers Value Through Precise Demand Matching

With its innovative network technologies and customized products, ZTE has developed a wide range of independent private 5G networks solutions. By accurately understanding the unique requirements of different industries, ZTE customizes network architectures accordingly, and delivers independent private 5G networks that precisely meet industry-specific demands, demonstrating powerful potential and broad prospects.

Industrial Sector

• In the steel industry, ZTE has established a private 5G industrial control network to support unmanned cranes and unmanned transportation. For example, at WISCO (Wuhan Iron and Steel Corporation), the private 5G industrial control network has been applied to core production areas, supporting the widespread use of unmanned cranes in hot rolling, cold rolling, and silicon steel workshops. More than 50 cranes have been upgraded, helping the iron and steel industry reduce costs and improve efficiency.
• In the mining industry, 5G explosion-proof base stations have been deployed to build underground 5G private networks, supporting applications such as voice communication in coal mine tunnels and intelligent inspection robots. For instance, at China Energy Group’s Qipanjing project, 5G mid-low hybrid-frequency networking is used to provide full coverage in both ground factory areas and underground environments, facilitating the transition from "fewer people" to "no people", and from "automation" to "intelligence."
• In the industrial manufacturing sector, the independent private 5G network offers a low-latency, high-reliability on-site network. It supports intelligent AGV scheduling and collaborative PLC control, enhancing equipment connectivity and production efficiency. For example, an automobile company has deployed a 5G private network as the digital and intelligent foundation of its factory. It ensures stable access for production equipment and, through the full integration of OT, IT, and CT (OICT), enables upgrades to core automotive production processes.

Energy Sector

• In the power grid industry, the dedicated private 5G network, by integrating technologies like IoT, big data, AI, cloud computing, and edge computing, provides a digital and intelligent infrastructure for building smart power plants. It supports typical services such as production control, intelligent inspection, operation and maintenance, and emergency response. For example, at the Hanchuan power plant, a 5G private network has been deployed to enable high-precision personnel positioning for enhanced security management, UAV-based inspections for improved efficiency, and remote-assisted maintenance for faster response times.
• In the oil and gas industry, the private 5G network for offshore production enables the upload of production data from unmanned drilling platform operations, ensures high-reliability remote control, and separates the internal production and office networks from the public network, guaranteeing intelligent oilfield production.

Transportation Sector

• In the port industry, ZTE provides independent 5G private networks to support unmanned horizontal and vertical transportation from storage yards to ships, accelerating the automation of port operations. For example, the independent private 5G network at Longgong Port in Shandong has created China’s first automated multi-lane transport park, integrating 5G technology, low-carbon operations, and canal-specific advantages.
• In the rail transit industry, the 5G private network supports the in-train CCTV video surveillance system, onboard PIS system, and intelligent O&M system for both trains and the rail network, promoting multi-network integration in metro systems. On Tianjin Metro Line 3, leasing private 5G networks from operators instead of building self-owned infrastructure enables more professional services and higher network efficiency, achieving both cost reduction and performance enhancement.

Entertainment Sector

• In the wireless live broadcasting industry, the transition toward high definition and wireless  connectivity is ongoing. ZTE’s 5G/5G-A simplified private network solution supports this transition, enabling two consecutive years of live Spring Festival Gala broadcasts and becoming the first to introduce vertical-screen streaming and 5G-A 4K wireless live broadcasting. The solution has also been applied to events such as Malaysia Games (SUKMA) 2024, enhancing production and broadcasting experiences.
• In the location-based entertainment virtual reality (LBE VR) industry, the independent private  5G network, with its 10 Gbps high throughput and low latency, overcomes the bottlenecks of traditional LBE VR, such as backpack-based rendering, insufficient headset computing power, and Wi-Fi streaming interference, enabling a high-definition experience without the need for a backpack. It supports over 100 concurrent users, and promotes the efficient, large-scale deployment of LBE VR projects.

More Sectors

• In the education and training sector, leveraging the advantages of 5G networks and in-depth industry research, ZTE has built a collaborative innovation system integrating industry, academia and research to speed up talent cultivation. For example, in Luoyang, ZTE partnered with a well-known laboratory that collaborates with research institutes, national key laboratories, and leading enterprises on a 5G-A deterministic network. The partnership has led to joint technological breakthroughs and the cultivation of industry talent.
• In the emergency private network sector, 5G emergency private networks integrate both public and private network base stations to ensure smooth voice, SMS, and video communications, improving rescue efficiency. For instance, the UAV rescue network in Mentougou, Beijing combines public network base stations, PDT trunking systems, Mesh ad hoc networks, and satellite relay devices. In "three-break" scenarios, it offers end-to-end communication support for the public and rescue teams.

Driven by robust technological innovation, expanding application scenarios, and industry-wide collaboration, independent private 5G networks are emerging as a key driver of industrial development. They are expected to become a cornerstone of the industrial Internet, accelerate new industrialization, and usher in a new era of industrial networking.