Private 5G and private cellular networks are increasingly positioned as critical infrastructure for mines, ports, factories, logistics hubs and large campuses. Yet despite growing awareness, many South African enterprises still perceive private 5G as prohibitively expensive, complex and difficult to justify.

This perception is understandable.  In reality, much of the cost associated with private 5G does not stem from the technology itself, but from how it is packaged, sold and implemented.

The legacy problem: a fragmented value chain

“What we see repeatedly is that private 5G is sold like a public mobile network. OEMs sell the equipment, then a system integrator is brought in and then the customer still needs a mobile operator for spectrum. Every step adds cost, not because the technology is expensive, but because the value chain is fragmented,” says Gary Woolley, Chief Commercial Officer of Comsol.

While this model made sense in early experimental deployments, it introduces inefficiencies when applied to production-grade enterprise environments.

“We regularly see enterprises paying for network cores, licences and services designed for national mobile operators, when their actual use case is a few hundred devices. Once you add it all up, it’s easy to see why private 5G gets priced into the high millions, even when it doesn’t need to be.”

Managed, layered and fit-for-purpose

A more effective approach treats private 5G not as a technology procurement exercise, but as a managed business service.  One that aligns connectivity directly to operational needs rather than infrastructure ownership.

“Private 5G cannot be sold as a box‑and‑build exercise. These networks carry regulatory and operational obligations, particularly around spectrum, and they need to be delivered as a managed service by a party that owns and controls the network end‑to‑end,” adds Woolley.

In this model, the spectrum holder, network operator and integrator functions are unified. The solution is built from modular components aligned to the actual use case, such as the number of devices, geographic footprint, performance requirements and operational criticality. Enterprises pay for what they need today, with the ability to scale as time grows.

“Most enterprises don’t need a network designed for tens of thousands of devices on day one. They need something that fits today’s use case and can grow over time. When you right‑size the network from the start, the cost profile changes completely,” says Woolley.

By delivering private 5G as a single managed service rather than a stitched‑together project, integration is simplified, risk and compliance are centralised, and cost drops as unnecessary layers are removed.

A market in transition

The private network market is currently in transition from technology-led to outcome-led.  Early adopters experimented with vendors selling hardware and integrators stitching solutions together. Now enterprises require something simpler, connectivity that works, scales, complies with regulation and supports their operations without forcing them to become telecoms specialists.

As this shift continues, the economics of private 5G in South Africa will increasingly favour integrated, managed and modular delivery models. 

“When you strip away the unnecessary layers and focus on the actual operational requirement, private 5G stops being a premium technology and starts being a practical one. The affordability is already there, it just depends on how you choose to deliver it.”