Memphis Light, Gas, and Water (MLGW) signed a deal with Nokia to deploy the first private 5G network by a U.S. municipal utility, a deployment MLGW COO and SVP Alonzo Weaver said will help the utility support its evolving electrical grid needs, and is a strong statement of support for the languishing market segment and a possible bright spot for Nokia’s telecom-focused business.

The deployment will use Nokia’s private 5G platform, that includes its AirScale radio access equipment, 5G Core Enterprise Solution, microwave backhaul where needed, NetGuard cybersecurity product and be fully managed by the vendor. The deployment will stretch across MLGW’s three-service architecture that serves more than 420,000 utility customers in Memphis and Shelby County, Tennessee.

Weaver explained to SDxCentral in an interview that the 86-year-old utility was in search of a more robust and secure way to connect and control its wide-ranging infrastructure.

“As the grid evolves, particularly the electric grid, we find ourselves needing a more reliable communications foundation that's advanced and can support automation, real-time visibility, and the various data needs that we have out there,” Weaver explained, adding that these needs were difficult to find from more traditional networks.

“Public networks don't always give you the type of coverage and resiliency that you want, reliability that you want for mission-critical operations, and with having our own private 5G network, and a secure network that's dedicated to what we're trying to do, we can prioritize our traffic,” Weaver said. “We can scale the coverage with our needs in mind. It gives us increased reliability and predictability and dedicated infrastructure and will minimize interference with public networks.”

Weaver also pointed to the private network providing an increased security posture, which is becoming increasingly important for public utilities.

“There's several bad actors trying to figure out how to crack the system,” Weaver said of the current environment. “By having our own private network versus having to ride on a public network, that gives us, we believe, some degree of security and control, so that was paramount in our decision making.”

Deployment logistics

The deployment will tap into some already established infrastructure MGLW has in place, including a fiber backbone and 600 MHz spectrum that it acquired in late 2023, and will also run alongside other networks in place. “But [the private 5G network] gives us a lot more flexibility,” Weaver said.

MLGW’s initial focus will be on powering its own internal systems, specifically around the deployment of its distribution automation system. Weaver explained this is a system of approximately 2,000 automated switches out in the field that need to communicate back to MLGW’s central command center and with those other switches in the field to monitor faults in the system.

“We have 10 large water plants and we need to be able to control that … need to look at the wells and be able to have communication with the wells and all those different assets that are out, those are things that we could use this 5G network for,” Weaver said.

The utility also plans to use the network for more traditional communication services with its crews in the field, including the ability to upload data from on-sight inspections. Weaver said that use cases down the road could include voltage and distributed generation control that would allow for integrating at-home battery storage platforms into the energy grid.

A boost for private 5G … and Nokia?

The deployment provides some much-needed momentum for Nokia and the broader private 5G space.

Nokia this week posted disappointing overall financial results for its most recent operating quarter. Recently installed CEO Justin Hotard called the quarter “mixed,” later stating a desire for Nokia to be “more predictable … we haven’t been as predictable as certainly we would expect ourselves to be.”

The vendor does remain a strong leader in the private network space, a notion backed by its claim of nearly 900 worldwide private network deployments. Those deployments include a number of deals with public utilities, including one with Southern California Edison, and work the vendor has done to make its 5G infrastructure more adaptable to public utility requirements.

However, the broader private network market continues to struggle for traction.

A recent survey-based report from analyst firm CCS Insights highlighted early benefits gleaned from initial private network deployments.

The firm found that two-thirds of enterprises that were early adopters of private networks “reported productivity improvements as a direct result of operating a private LTE or 5G network, with 55% achieving a return on investment in less than two years.” Those surveyed noted that they selected private 5G over a Wi-Fi solution due to “improved coverage, security, reliability, and network performance.”

That return on early adoption has also been noted by other firms.

ABI Research in a report last year found that private networks are finding a willing audience among manufacturing firms, “which are overwhelmingly integrating private cellular solutions into their operations.”

“Private cellular networks are rapidly becoming the backbone of manufacturers’ digitization strategies, offering unparalleled control, reliability, and scalability,” ABI Research Principal Analyst Leo Gergs noted. “As manufacturers across industries increasingly look to modernize, 4G and 5G networks are at the forefront of this transformation, shaping the future of operational efficiency and connectivity.”

However, CCS Insights also noted that “the lack of fully integrated, off-the-shelf 5G solutions continues to hinder scalability and limits the technology’s potential across industries,” and a continuing lack of market maturity “remains a barrier.”

“Respondents emphasized the need for easier, integrated solutions,” CCS Insights’ Luke Pearce wrote. “One interviewee noted, ‘we don’t see many off-the-shelf fully 5G integrated solutions available to us. We shouldn’t have to build this capability. We want to buy it off the shelf.’”

This lack of integration can be attributed to the number of entities attempting to gain a foothold in the space. Analysts have noted that enterprises looking to deploy a private network are having to weed through a maze of carriers, equipment providers, and system integrators (SIs), all touting their market advantages.

Dan Hays, a partner at consulting firm PwC, in an interview earlier this year explained that the Mobile World Congress (MWC) event in Barcelona showed “there was notably less noise about private networks than there has been the last few years,” adding, “I think that they've become an accepted model, but one that still is kind of a little bit unproven in its value proposition.”

Gergs professed a slightly more positive message, though tinged with hints of challenges that remain to be addressed.

“The private 5G market is still in its infancy, with significant hurdles to overcome,” Gergs wrote. “Yet, for those who have invested, the returns are clear: transformative productivity gains, cost savings, and enhanced operational capabilities. For vendors, the message is equally clear: simplifying deployment, addressing ecosystem gaps, and demonstrating real-world return on investment will be critical to driving broader adoption.”