5G RAN Slicing for Industry 5G Verticals: A Comparative Techno-Economic Analysis of Private Network Deployment Versus Network Slicing

Nikos Ioannou, Dimitris Kokkinis, Dimitris Katsianis and Dimitris Varoutas

33rd European Regional ITS Conference, Edinburgh, 2025: Digital innovation and transformation in uncertain times from International Telecommunications Society (ITS)

Abstract: The strategic decision to build a private 5G network or buy a 5G network slice from a telecom operator presents a critical techno-economic dilemma for industries requiring advanced automation solutions that rely on connectivity infrastructure. This study addresses this decision by conducting a comparative techno-economic analysis specifically targeting three distinct 5G industry vertical scenarios: a seaport (outdoor), an automotive factory (indoor), and a power plant campus (hybrid indoor and outdoor). The modeling of the scenarios is based on data from real-world deployments and industry benchmarks and is used by the technoeconomic bottom-up model to estimate the economic impact of 5G RAN slicing and 5G private network deployments per scenario, emphasizing metrics such as Capital Expenditure (CAPEX), Operational Expenditure (OPEX) and Net Present Value (NPV) of costs. The results show that RAN slicing can reduce CAPEX by 33–68% and OPEX by 12–51% compared to private 5G deployments, primarily through macro-site reuse and shared resources but at the expense of customization and the highest isolation and security levels, which can greatly reduce the potential cost savings. This study identifies which industries benefit from the customization and control offered by owning infrastructure and which industries can scale and deploy more efficiently via slicing arrangements, offering organizations actionable insights to align their strategic connectivity decisions with financial resources, operational priorities, and technical needs.

Date: 2025
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