# CBRS vs Licensed Private 5G: Which Spectrum Strategy Wins
If you are deploying private 5G in the United States, the spectrum question is real: CBRS (3.55–3.7 GHz) or fully licensed mid-band? Outside the US, the question is different — most regulators have created direct enterprise licensing schemes (Germany 3.7–3.8 GHz, UK Shared Access, Japan local 5G, Brazil 3.7–3.8 GHz). Each model has different implications for cost, control, and deployment effort.
This is the breakdown an enterprise architect actually needs.
CBRS: The Three-Tier System
CBRS in the US uses a three-tier shared-spectrum model administered by the Spectrum Access System (SAS):
- Tier 1 — Incumbent. US Navy radars and fixed satellite earth stations. Always have priority. Coastal exclusion zones (now Dynamic Protection Areas, DPAs) protect them.
- Tier 2 — Priority Access License (PAL). Auctioned, county-based, 10 MHz channels, 10-year terms, renewable. PAL holders get protected use within their license area, subject to incumbent protection.
- Tier 3 — General Authorized Access (GAA). Free to use. Any qualified device can transmit on any GAA channel, subject to SAS authorization and incumbent/PAL protection.
A CBRS Device (CBSD) registers with a SAS, reports its location and capabilities, and the SAS grants it a channel. The SAS coordinates everywhere in real time — if a Navy radar fires up nearby, the SAS pulls grants and CBSDs must vacate within 60–300 seconds.
This system is unique to the US. Nothing else looks like it.
What That Means in Practice
GAA is genuinely free. No license fee, no auction. You buy CBRS-capable radios (gNBs), register them with a SAS provider (Google, Federated Wireless, Sony, Key Bridge), pay the SAS a per-CBSD fee (typically $1–10/month per radio), and you are on the air. GAA is shared. In urban or industrial-park deployments, you may share channels with other GAA users nearby. The SAS coordinates to minimize interference, but you do not have exclusive use. PAL is licensed but expensive. PAL auctions in 2020 averaged $0.20/MHz/POP, with metro counties in major markets going much higher. For a single county license, capex is real money. PAL gives you protected, exclusive 10 MHz that GAA cannot interfere with. CBRS gear is mature and cheap. Five years in, the radio ecosystem is well-developed. CBSDs from Airspan, Baicells, Nokia, Ericsson, JMA, and others compete on price.Licensed Private 5G
Outside the US, the dominant model is direct enterprise licensing in dedicated bands:
- Germany: 3.7–3.8 GHz, BNetzA-issued, ~€1,000+ admin fee plus a formula based on bandwidth and area. Reasonable.
- UK Ofcom Shared Access: 3.8–4.2 GHz and others, modest annual fee, coordinated by Ofcom.
- Japan: 4.6–4.9 GHz local 5G. Direct licensing, reasonable cost, mature.
- Brazil, Hong Kong, France, Sweden, Finland, Australia: variations on the same idea.
- In the US: lease licensed spectrum from an MNO or use 600/700 MHz/AWS-3 if you can acquire it. Expensive.
The upside of licensed: exclusive use, no SAS coordination, simpler regulatory model. The downside: cost (where it exists), and you are tied to a specific band's gear ecosystem.
Cost Comparison
For a single-site enterprise deployment (manufacturing campus, ~500,000 sq ft, 8 cells):
- CBRS GAA in the US: cells $40k–120k total, SAS subscription $1k–5k/year, no spectrum cost. Total year-1: $50k–130k.
- CBRS PAL: same hardware plus PAL acquisition. PAL costs vary wildly by county. Could add $50k or $5M.
- Licensed private 5G in Germany 3.7 GHz: hardware similar, license fee likely <€10k for a single site, exclusive use.
- MNO-leased licensed spectrum: variable, often a wholesale arrangement bundled with the MNO's managed-services offering. Easy to get to seven figures fast.
Coverage and Performance
CBRS at 3.5 GHz, GAA, with an SAS-imposed power limit (typically 30 dBm/10 MHz EIRP for Category A indoor, up to 47 dBm for Category B outdoor) gets you about 100–200 m indoor cell radius depending on building, 500 m–1 km outdoor LOS. Similar to other mid-band 5G.
Licensed bands at similar frequencies behave the same physically. The differences are operational: CBRS GAA may force you to a narrower channel under contention; PAL or licensed spectrum gives you the full bandwidth predictably.
Real Deployments
Manufacturing: John Deere (multiple sites, US, CBRS), BMW (Spartanburg, CBRS), Mercedes Sindelfingen (Germany, 3.7 GHz licensed). The pattern: licensed where available, CBRS where it is the only option. Ports: Long Beach, Rotterdam, Hamburg. AGV control, crane automation, video analytics. All on local-licensed or private-leased spectrum. Hospitals: Several US hospital systems run CBRS for clinical mobility and tablet workflows. CBRS works because indoor coverage is bounded. Stadiums and venues: CBRS GAA for in-venue services, sometimes layered with neutral-host MNO traffic.Decision Framework
Ask in this order:
- Are you in the US? If no, look at your country's enterprise spectrum scheme first. It is almost always cheaper and simpler than equivalent CBRS.
- Is your deployment indoor and bounded? If yes, CBRS GAA is usually fine. Coordination overhead is minimal.
- Is the workload mission-critical with strict SLA? If yes, you want exclusive spectrum: PAL in the US, licensed elsewhere.
- Is there interference risk? Dense urban industrial parks may have GAA contention. Survey before deploying.
- Do you have RF expertise in-house? CBRS hides complexity behind the SAS. Licensed deployments typically need more careful planning but operate without external coordination.
What to Watch
The FCC has been considering 3.45 GHz and other adjacent bands. AT&T and Verizon are pushing for more exclusive licensing. CBRS as it exists today could shift as policy evolves. Don't deploy on the assumption that the regulatory environment is static — it isn't.
For most US enterprise private 5G deployments today, CBRS GAA is the right starting point. It is the cheapest path to a working private network, and the gear ecosystem is mature. Move to PAL or licensed spectrum only when contention or SLA requirements force the decision.