Spain's B2B sector is set to receive a boost with the announcement of a new 5G private network partnership between Orange Spain and Ericsson (NASDAQ: ERIC), marking a historic milestone in the country’s digital transformation. The collaboration, the first of its kind in Spain, is set to revolutionize the market by offering B2B customers in Spain the opportunity to deploy their own private 5G network – ensuring that businesses can leverage the latest technological advancements to maintain a competitive edge in their respective industries.

The introduction of private 5G networks for the B2B sector unlocks a multitude of benefits, including real-time automation, improved productivity, enhanced worker safety and unparalleled security, reliability, customization and cost-effectiveness. As a result, many businesses across various industries are now able to leverage these advantages and drive their operations to new heights.

This groundbreaking infrastructure will allow Orange Spain to enable reliable, secure and low latency connectivity for B2B customers and support the adoption, use and scaling of new data-driven technologies, while boosting their 5G monetization capabilities and reducing the implementation lead time.

The new private networks will be powered by Ericsson’s dual-mode 5G Core which supports the Orange 5G Standalone (SA) network deployed across the country, along with some dedicated network functions such as Ericsson’s Local Packet Gateway (providing local breakout, among other capabilities) deployed in B2B customer premises.

Local Breakout refers to the capability of routing network traffic directly at the customer's premises instead of sending it through a centralized location, essentially providing a localized gateway for data traffic. In the context of private networks, this enables specific functionalities and services to be deployed closer to the enterprise, offering faster data processing and reduced latency.

The resulting improved responsiveness and tailored services within the private network enable enterprises to enjoy the same advantages previously limited to dedicated private networks, including superior throughput, reduced latency and access to dedicated and/or shared radio resources.  These features ensure optimal performance for the enterprise while maintaining the security of their networks. Data integrity and confidentiality is also ensured as enterprise data remains within the premises and does not mix with public networks.

This innovative approach to private networks will allow Orange to empower their enterprise customers with extended capabilities of the public commercial network. The solution will also enable enhanced flexibility where the specific needs of a company can be covered by using components dedicated exclusively to their requirements.

This framework will play a crucial role in unlocking new use cases and driving innovation across industries such as logistics, transportation, automative and manfuacting. In particular, it will enable real-time automation that can, for instance, greatly improve productivity and worker safety, while outcomes of enhanced security and reliability can boost business operations. Moreover, these networks provide greater customization options and cost-effectiveness for B2B customers, making it easier for them to meet their unique business needs.

By utilizing a common infrastructure that covers both public and private networks, Orange leverages synergies that enable them to offer an even more competitive pricing solution for companies. Furthermore, B2B customers no longer require specialized knowledge of connectivity solutions as Orange assumes the responsibility of managing the network. Simultaneously, this partnership allows Orange to deliver dedicated and exclusive services within the coverage area, while also offering advanced services beyond the enterprise premises by leveraging the public network.

The management of the connectivity solution is also handled by Orange, further eliminating the need for specialized knowledge within the enterprise. At the same time, Orange can now  offer dedicated and exclusive services for the company within its coverage area, also allowing them to continue offering these advanced services when it leaves the factory by using the public network.

The partnership between Orange Spain and Ericsson builds upon 25 years of successful collaboration and comes after the two companies successfully launched Spain's first commercial 5G SA network in February 2023.

Mónica Sala, CTO, Orange Spain, says: "At Orange Spain, we are thrilled to partner with Ericsson in delivering groundbreaking Private 5G networks, driving Spain's digital transformation forward. By providing B2B customers with their own dedicated networks, tailored to their specific needs, we empower businesses to embrace new opportunities and gain a competitive edge in their industries. With enhanced security, real-time automation, and unmatched customization, our private 5G networks unlock a world of possibilities, propelling businesses to new heights of productivity and innovation."

Luisa Muñoz, Head of Ericsson Cloud Software and Services, Ericsson Iberia, says, “Implementing dedicated 5G networks for the private sector provides significant advantages for B2B customers in Spain. By streamlining operations and reducing costs, businesses can become more competitive and efficient. The Ericsson’s dual-mode 5G Core solution in Orange’s 5G SA network can drive innovation, providing B2B customers with a reliable, high-performance network infrastructure that meets their unique needs and helps them stay ahead in today's rapidly evolving business landscape.”