BREAKING NEWS: Firecell and Accelleran Merge to Deliver Sovereignty-Compliant Industrial Private 5G Learn more

BREAKING NEWS: Firecell and Accelleran Merge to Deliver Sovereignty-Compliant Industrial Private 5G Learn more
Home > CBRS vs. Licensed Spectrum: Key Differences

CBRS vs. Licensed Spectrum: Key Differences

Choosing between CBRS (Citizens Broadband Radio Service) and licensed spectrum depends on your network needs, budget, and performance requirements. Here’s a quick breakdown:

  • CBRS: Shared spectrum at 3.5 GHz, offering a low-cost option for private 5G. Ideal for localised use, IoT, and logistics, with speeds of 100–200 Mbps and latency of 20–30 ms. Costs are significantly lower, with free General Authorised Access (GAA) and affordable Priority Access Licences (PALs).
  • Licensed Spectrum: Exclusive spectrum, delivering ultra-reliable performance with speeds exceeding 1 Gbps and latency as low as 1–10 ms. Best for mission-critical tasks like automation and robotics but requires high upfront investment and infrastructure.

Quick Comparison

Feature CBRS Licensed Spectrum
Access Model Shared (3-tier system) Exclusive
Performance 100–200 Mbps, 20–30 ms >1 Gbps, 1–10 ms
Cost Low (GAA is free) High (multi-million £ auctions)
Coverage 1–2 miles Several kilometres
Use Cases IoT, logistics, warehouses Automation, robotics, surgery

Many organisations combine both options: CBRS for broad coverage and licensed spectrum for critical operations. Your choice should align with your specific requirements and budget.

CBRS vs Licensed Spectrum: Performance, Cost and Use Cases Comparison

CBRS vs Licensed Spectrum: Performance, Cost and Use Cases Comparison

CBRS and Private 5G – Welcome to the Private Wireless Revolution

What is CBRS?

The Citizens Broadband Radio Service (CBRS) operates within a 150 MHz spectrum range, specifically from 3,550 MHz to 3,700 MHz. This range is also referred to as "Band 48" in the United States. Unlike traditional spectrum allocations, which are exclusively licensed, CBRS adopts a shared access model, allowing multiple users to function within the same frequency band.

CBRS is built on a three-tiered access system, managed by a cloud-based Spectrum Access System (SAS), which allocates priority based on user type:

  • Tier 1 (Incumbent Access): Reserved for federal users such as the US Navy’s radar systems and fixed satellite earth stations. This tier holds the highest priority and cannot be interrupted.
  • Tier 2 (Priority Access Licence or PAL): Offers 10 MHz channels through county-based auctions. For instance, the FCC‘s Auction 105 distributed 22,631 licences, generating approximately £3.8 billion. PAL users are protected from interference caused by Tier 3 users.
  • Tier 3 (General Authorised Access or GAA): Allows free, unlicensed access but must defer to both Tier 1 and Tier 2 users.

The SAS acts like an air traffic controller for the network, ensuring smooth operations. Before transmitting, all CBRS devices (CBSDs) must register with the system. The SAS dynamically assigns frequencies, manages power levels, and ensures interference is minimised. If a federal incumbent requires access, an Environmental Sensing Capability (ESC) network detects their activity and alerts the SAS, which then reallocates lower-tier users to other frequencies.

This tiered, shared approach to spectrum management offers a distinct alternative to the exclusive licensing model, presenting unique advantages and challenges. These differences will be explored further in the subsequent sections.

What is Licensed Spectrum?

Licensed spectrum refers to specific frequency bands allocated exclusively to a single entity, typically a mobile network operator or enterprise. Unlike shared models such as CBRS, licensed spectrum ensures exclusive access, giving the owner sole rights to transmit on those frequencies without competition from other users.

This exclusivity is achieved through competitive auctions organised by national regulators like Ofcom in the UK or the FCC in the United States. These auctions generally include two stages: a Principal Stage for competitive bidding and an Assignment Stage for allocating specific frequencies.

A notable example is Ofcom’s March 2021 auction, which released spectrum in the 700 MHz and 3.6–3.8 GHz bands. Four operators – EE Limited, Hutchison 3G UK Limited, Telefónica UK Limited, and Vodafone Limited – competed for 200 MHz of spectrum to enhance 5G services and improve indoor mobile coverage across the UK. The auction set reserve prices for the 3.6 GHz band at £20 million per 5 MHz lot, reflecting the high demand for exclusive access.

Licensed spectrum offers a high Quality of Service (QoS), making it ideal for applications like autonomous vehicle navigation, remote surgery, and industrial robotics. This reliability is critical because it eliminates interference from external users. As Private Cellular Network explains:

"Licensed spectrum is carefully monitored, carriers are able to identify malicious actors quickly that may attempt to interfere with the information being sent and received".

However, this reliability comes at a cost. Beyond the auction fees, organisations must invest in advanced infrastructure and navigate complex regulatory processes. For operations where signal disruptions are not an option, the advantages of exclusive access outweigh the expenses. This dedicated model differs significantly from CBRS’ shared approach, setting the stage for a deeper look at spectrum access models.

Spectrum Access and Availability Differences

The key difference between CBRS and licensed spectrum lies in how they manage access. CBRS operates on a shared model, while licensed spectrum grants exclusive rights to specific frequencies within defined areas.

CBRS relies on a cloud-based Spectrum Access System (SAS) to coordinate frequency use across three tiers. This system protects higher-priority users while making the most of the 150 MHz band (3,550–3,700 MHz). Licensed spectrum, on the other hand, doesn’t need such dynamic coordination because the owner has sole rights to transmit without competing interference.

The scalability of these models varies significantly. CBRS allows enterprises to quickly set up private 5G networks through the General Authorised Access (GAA) tier without needing individual licences. However, Priority Access Licence (PAL) allocations, limited to county-level coverage, may exceed the needs of a single facility. Licensed spectrum, while ideal for wide-area deployments, often requires multi-million-pound investments, typically limiting access to large mobile network operators. Below, we delve into how these access models impact industrial applications.

CBRS: Shared Access Model

CBRS divides the 3.5 GHz band into three tiers, each with its own access rights:

  • Tier 1 (Incumbent Access): Reserved for federal users with absolute priority.
  • Tier 2 (Priority Access Licences): Grants licensed access to 10 MHz channels per county through competitive FCC auctions.
  • Tier 3 (General Authorised Access): Allows unlicensed, opportunistic use of at least 80 MHz of spectrum.

CBRS has seen practical use in various sectors. For instance, John Deere leverages it to automate manufacturing processes, using robotics and augmented reality for inspections, all while maintaining control over data and service quality. Similarly, California State University, Stanislaus implemented a campus-wide 5G private network in 2022 using CBRS to ensure reliable connectivity for students and research activities.

However, the shared model does have its limitations. CBRS operates under lower transmit power limits compared to traditional licensed networks, which can make it challenging to scale in large outdoor areas. GAA users, while benefiting from immediate access, lack interference protection, and PAL users must defer to incumbent users if needed. That said, the SAS handles these complexities automatically, and organisations only pay a nominal fee for SAS coordination – GAA access itself is essentially free. With this overview of CBRS, let’s now examine the exclusive nature of licensed spectrum.

Licensed Spectrum: Exclusive Access

Licensed spectrum grants exclusive rights to specific frequency blocks over large geographic areas through auctions managed by national regulators. This exclusivity eliminates interference from other commercial users, ensuring the high performance and reliability needed for critical applications. Without the need for dynamic coordination, the spectrum owner has full control over transmissions within their licensed area.

The reliability of licensed spectrum is unparalleled, offering uninterrupted connectivity akin to driving on a private motorway rather than being stuck in rush-hour traffic. This makes it the go-to choice for operations where even minor disruptions could have serious consequences.

The downside is cost and accessibility. Securing licensed spectrum typically involves multi-million-pound investments, making it out of reach for most individual enterprises. While CBRS lowers the barriers to spectrum access with localised licensing and minimal costs, licensed spectrum remains the preserve of major mobile network operators. For organisations needing guaranteed connectivity across vast areas, the investment in licensed spectrum provides unmatched control and service quality.

Cost Comparison

The financial gap between CBRS and licensed spectrum is striking. CBRS provides a cost-effective route to private 5G without the hefty investments typically required by major mobile operators. Auction data highlights that the price of licensed spectrum far exceeds that of CBRS, directly influencing how organisations approach deployment and network design.

The infrastructure needs differ too. CBRS networks often rely on off-the-shelf hardware and small cells, whereas licensed 5G demands specialised, high-capacity base stations and core network equipment. CBRS networks can be up and running within 2–4 months, while licensed spectrum deployments require lengthy planning and integration with existing systems. Additionally, operational costs for both options typically amount to 15–20% of the initial investment annually. Despite this, many organisations using CBRS achieve a return on investment within 12 to 24 months. Ultimately, the decision between CBRS and licensed spectrum depends on budget limitations and specific operational requirements.

CBRS: Lower Costs and Flexible Options

CBRS’s three-tier framework reshapes the economics of private networks. The General Authorised Access tier is completely free, eliminating spectrum licensing costs altogether. For small-to-medium deployments, upfront costs range from £37,000 to £75,000, with individual small cell sites priced between £7,500 and £22,500. Dan Omalley, a 5G specialist at Nybsys, explains:

"CBRS eliminates the need for costly dedicated spectrum licences… businesses can easily access it with budget constraints".

Ongoing expenses for CBRS remain relatively low. While users must cover Spectrum Access System fees for frequency coordination, these are minimal compared to the recurring licensing or leasing fees associated with licensed spectrum. The availability of nearly 500 certified CBRS devices has also driven hardware costs down, making it a viable option for schools, hospitals, industrial facilities, and even libraries. For organisations requiring interference protection, Priority Access Licences are available at a fraction of the cost of licensed spectrum, though their county-level coverage may exceed the needs of smaller facilities.

CBRS provides a cost-efficient and flexible solution, particularly for organisations with limited budgets. However, licensed spectrum offers a different value proposition for those requiring guaranteed performance.

Licensed Spectrum: Higher Investment

Licensed spectrum comes with a steep price tag. Exclusive rights are secured through auctions that often reach billions of pounds, making them inaccessible for most individual enterprises. Beyond acquiring the spectrum, organisations must invest heavily in infrastructure, including specialised base stations, core hardware, and the expertise to manage licensed frequencies. These costs persist throughout the network’s lifecycle, often involving recurring regulatory fees or expensive leasing agreements with mobile operators.

The complexity of deploying licensed spectrum adds another layer of expense. It requires detailed planning, regulatory approvals, and skilled personnel for ongoing operations. For organisations needing guaranteed connectivity across large geographic areas, the investment provides unparalleled control and reliability. However, this option is typically feasible only for those with multi-million-pound budgets.

Performance and Reliability

When it comes to network design, performance and reliability are just as crucial as cost. Licensed spectrum delivers latency between 1–10 ms and speeds exceeding 1 Gbps, while CBRS typically operates with 20–30 ms latency and throughput of 100–200 Mbps. These differences can make or break applications like real-time industrial automation, where split-second performance is key.

CBRS faces stricter transmit power limits, which restrict its effective range to about 1–2 miles (1.6–3.2 km). In contrast, licensed spectrum supports higher power levels, allowing it to cover several kilometres, depending on frequency.

Reliability also varies greatly between the two. Licensed spectrum provides exclusive access, eliminating interference and ensuring a guaranteed Quality of Service (QoS). On the other hand, CBRS operates on a shared model, where General Authorised Access (GAA) users may encounter interference from higher-tier users. However, updates like CBRS 2.0 have improved its stability with features such as extended expiry timers and reduced protection areas. Let’s break down how each spectrum type aligns with different industrial needs.

CBRS: Mid-Range Performance for Localised Use

CBRS strikes a balance between performance and affordability, making it a great fit for environments like warehouses, campuses, and ports. Its speeds of 100–200 Mbps and latency of 20–30 ms are sufficient for many applications. CBRS also offers 2 to 3 times the coverage range of Wi-Fi 6E, which is particularly useful for large facilities. Dan Omalley, a 5G expert at Nybsys, captures its appeal well:

"CBRS 2.0 enables carrier class reliability without sacrificing the low cost, shared spectrum model that made CBRS so attractive to enterprises in the first place."

Despite its shared nature, which can lead to interference for GAA users, CBRS remains a practical choice for cost-conscious organisations. It’s ideal for tasks like inventory tracking, predictive maintenance, and campus-wide connectivity, where moderate performance is enough.

Licensed Spectrum: High Performance for Critical Applications

Licensed spectrum, however, is the go-to option for industries that demand top-tier, reliable performance. With 1–10 ms latency and speeds that outpace CBRS by 5 to 10 times, it’s the backbone for mission-critical applications like autonomous vehicle manufacturing, synchronised robotics, and real-time automation. Unlike CBRS, its exclusive bandwidth ensures consistent performance, even under heavy network loads.

One comparison sums it up perfectly:

"Licensed spectrum offers a level of performance and reliability that unlicensed options simply can’t match… it’s the difference between driving on a private highway versus battling rush hour traffic on a public road." – Private Cellular Network

The exclusive nature of licensed spectrum eliminates interference, providing the predictability that shared models like CBRS can’t deliver. For industries where network downtime could halt production or compromise safety, the added reliability of licensed spectrum justifies its higher cost. It’s a small price to pay for ensuring uninterrupted operations in high-stakes environments.

Industrial Use Cases

Real-world applications highlight how different spectrums cater to specific industrial needs. CBRS and licensed spectrum each play unique roles in sectors like manufacturing, logistics, and enterprise operations, addressing varying demands and budgets. Let’s dive into how each spectrum type stands out in specific scenarios.

CBRS for IoT and Logistics

CBRS is a great fit for applications prioritising cost-effectiveness and broad coverage over ultra-low latency. Its mid-range capabilities make it perfect for connecting large numbers of IoT sensors, tracking assets across vast areas, and supporting logistics operations where split-second precision isn’t critical.

For example, in 2022, the American Dream retail complex adopted CBRS for location tracking, reducing fibre installation costs by a staggering 90%. Similarly, the Virginia Tech Transportation Institute uses CBRS to monitor traffic in real-time and detect hazards, boosting public safety.

CBRS thrives in settings like warehouses, agricultural fields, and open-pit mines, covering distances of around 1–2 miles (1.6–3.2 kilometres). It’s particularly effective for tasks like predictive maintenance and remote monitoring, where high sensor volumes are needed but guaranteed service quality isn’t essential.

Licensed Spectrum for Mission-Critical Automation

For operations where downtime or interference is unacceptable, licensed spectrum is the go-to option. Offering latency as low as 1–10 ms and speeds exceeding 1 Gbps, licensed spectrum is essential for mission-critical tasks. This includes autonomous vehicle manufacturing, synchronised robotics, and real-time control systems, where network reliability directly impacts safety and productivity. A single dropped connection could halt an entire production line or create dangerous conditions.

The exclusive nature of licensed spectrum eliminates the interference risks common in shared models, providing dedicated frequencies that ensure uninterrupted performance. While the investment is higher, the reliability it offers is indispensable for operations where performance cannot be compromised.

How Firecell Supports Private 5G Deployments

Firecell

Firecell provides ready-made private 5G solutions tailored to industrial and enterprise needs, whether organisations choose CBRS or licensed spectrum. Their pre-configured networks significantly cut deployment times, reducing them from months to just weeks.

For CBRS users, Firecell offers the Orion Labkit, priced at £11,900 upfront with an annual fee of £5,580. This open-source 5G lab network supports indoor testing and development across spaces ranging from 10m² to 1,000m². For larger deployments, the Pegasus Network delivers scalable private 5G connectivity for areas exceeding 10,000m². The subscription plan, costing £99 per 1,000m² per month, includes installation, maintenance, management, and monitoring software for indoor deployments of 10,000m² or more.

Firecell’s solutions ensure sensitive industrial data stays on-site, bypassing public carriers while offering end-to-end encryption. They also integrate seamlessly with existing enterprise LANs. Whether it’s connecting autonomous robots in factories, enabling real-time tracking in ports, or supporting IoT sensors in agriculture, Firecell provides secure, reliable, and cost-efficient connectivity. By addressing diverse industrial requirements, they empower organisations to choose the spectrum strategy that best meets their operational needs.

Conclusion

Choosing between CBRS and licensed spectrum depends entirely on your network’s specific requirements. CBRS offers a budget-friendly option with speeds of 100–200 Mbps and latency in the range of 20–30 ms. This makes it a strong candidate for applications like IoT deployments, warehouse logistics, and scenarios where wide coverage is more critical than ultra-fast response times. On the other hand, licensed spectrum demands a larger upfront investment but provides exclusive access, ultra-low latency of 1–10 ms, and speeds exceeding 1 Gbps. These attributes are indispensable for mission-critical operations, such as automation systems, where even a brief connection drop could disrupt production or compromise safety.

"Spectrum is the foundation upon which all wireless communication is built."

Cost differences between the two options are also worth noting. CBRS Priority Access Licences averaged £0.17 per MHz/POP, significantly lower than the £0.86 per MHz/POP for licensed C-Band spectrum. This makes CBRS a practical choice for organisations with limited budgets or less critical connectivity requirements. However, for high-stakes environments like the BMW factory in Oxford – producing around 1,000 vehicles daily and generating roughly £20 million in revenue – licensed spectrum’s reliability becomes non-negotiable.

Many organisations are now adopting hybrid strategies to strike a balance. By using CBRS for cost-effective, broad coverage and licensed spectrum for high-performance workloads, enterprises can optimise their investments while ensuring critical operations maintain guaranteed Quality of Service.

Ultimately, your spectrum choice should align with your operational priorities. Firecell simplifies private 5G deployments for both CBRS and licensed spectrum with scalable, pre-configured solutions. Whether you’re connecting autonomous robots, managing logistics assets, or supporting IoT sensors, aligning your spectrum with your needs – and working with experienced partners like Firecell – ensures seamless performance, robust security, and dependable reliability.

FAQs

Do I need a PAL, or is GAA enough for my site?

Whether you should opt for a Priority Access Licence (PAL) or General Authorised Access (GAA) depends entirely on your site’s specific needs. A PAL provides licensed, priority access to the spectrum, making it a great choice for applications that demand high reliability and minimal interference – perfect for critical or performance-intensive operations. On the other hand, GAA operates on an unlicensed basis, making it a more budget-friendly option. It’s suitable for less demanding scenarios where occasional interference is acceptable. Your decision should reflect your priorities around security, reliability, and available budget.

How likely is CBRS interference, and how can it be mitigated?

CBRS interference can vary based on factors like the number of devices in use and their locations. For instance, areas with heavy traffic, like bustling city centres, are more prone to interference because of the higher demand for CBRS usage. To address this, CBRS relies on a tiered access system. This system is managed by Spectrum Access Systems (SAS), which dynamically coordinates how the spectrum is used to minimise conflicts.

Beyond that, interference risks can be reduced through careful deployment strategies. These include adjusting radio power levels and leveraging SAS controls effectively to ensure smoother operation and less disruption.

Can I run a hybrid network using both CBRS and licensed spectrum?

Yes, it’s possible to combine CBRS and licensed spectrum in a hybrid private network. This setup merges the cost-effectiveness and straightforward deployment of CBRS with the reliable, interference-free performance of licensed spectrum. Such a combination provides flexibility and scalability, making it ideal for applications like industrial automation, logistics, and enterprise communications. Each spectrum type can address specific needs within the network, leveraging their distinct advantages.

Related Blog Posts

Share
Breaking news
Firecell and Accelleran Merge to Deliver Sovereignty-Compliant Industrial Private 5G
Want to become a Partner?
Calculate your TCO