As technology continues to evolve, private mobile networks are becoming increasingly popular among retailers. These networks offer numerous benefits, including increased productivity, enhanced customer experience, and improved security. However, deploying a private mobile network in a retail environment also requires a significant investment. To understand the true cost of implementing such a network, it is important to consider the Total Cost of Ownership (TCO).
The TCO includes all of the costs associated with the deployment, maintenance, and management of a private mobile network in retail. It is important to consider all of the elements that contribute to the TCO to make an informed decision on whether a private mobile network is a worthwhile investment for your retail business.
- Network Infrastructure: One of the most significant costs associated with deploying a private mobile network in retail is the infrastructure required. This includes the cost of hardware, such as servers and routers, as well as software, such as network management tools. These costs can vary significantly depending on the size and complexity of the network. It is worth noting that LTE networks have few components and relatively low complexity.
- Installation and Deployment: The cost of installation and deployment is another significant factor to consider. This includes the cost of labor, equipment, and any necessary modifications to the physical environment. Depending on the size of the network, this cost can be substantial. Again, having to deal with less components and a centralized setup could be a major benefit for LTE versus alternative options available.
- Maintenance and Support: Once the network is deployed, ongoing maintenance and support will be required to ensure that it continues to function properly. This includes the cost of software updates, security patches, and technical support.
- Training: Retail staff will need to be trained on how to use the new network. This includes both initial training and ongoing training as new features and updates are introduced.
- Downtime: Downtime can have a significant impact on the TCO of a private mobile network in retail. The longer the network is down, the more revenue and productivity are lost. It is important to have contingency plans in place to minimize the impact of any potential downtime. Such plans can be tricky and should usually be left to an expert partner regardless of the technology selected.
- Security: Security is a critical consideration when deploying a private mobile network in retail. The cost of security measures, such as firewalls and encryption, must be factored into the TCO.
While the TCO of a private mobile network in retail can be substantial, it is important to weigh the costs against the benefits. A well-designed and well-implemented network can provide significant benefits to a retail business, including improved productivity, enhanced customer experience, and increased security. In many of the scenarios you’d come across, private LTE networks make the most sense by far from a cost perspective as well as TCO.
