Dynamic end-to-end network slicing key to 5G profitability
Dec 12, 2017
Calls for Further Ecosystem Development and Collaboration to Drive Business Cases, Address Technical Challenges
Boston, MA – December 11, 2017 — According to the Strategy Analytics Service Provider Strategies (SPS) report published in conjunction with RCR Wireless, “Network Slicing the Key that Unlocks 5G Revenue Potential – Where 5G meets SDN/NFV,” Communications Service Providers (CSPs) can grow revenues and enhance profits with dynamic end-to-end (E2E) network slicing in 5G. Digging into examples from BT, Verizon and others, Strategy Analytics examines early stage developments and delivers a call to action for more collaboration to address both business and technical challenges to deliver on the promise of network slicing for 5G Return on Investment (RoI). The report and related RCR Webinar and executive interviews include insights from sponsors Intel and InterDigital on key challenges and opportunities, including their work progressing standards at IETF and 3GPP.
Click here for a complimentary copy of the Strategy Analytics report:
Key findings from the report:
Network slicing is a mechanism that will allow CSPs to dynamically allocate network resources in ways that will maximize customer value so that 5G can serve new purposes, adapt to specific needs and drive revenue opportunities. With dynamic E2E network slicing, the industry can begin to move to a model where services expand and contract their use of network resources as traffic demands.
5G network slicing is expected to deliver service agility, enhanced security and “just fit” services for enterprises, among other benefits. In particular, network slicing will enable CSPs to offer Network as a Service (NaaS), with new Mobile Virtual Network Operator (MVNO) or partner models for verticals and specific segments/use cases.
Susan Welsh de Grimaldo , Director, Service Provider Strategies , Strategy Analytics recommends: “We challenge the mobile industry with a ‘Call to Action’ in 2018 to deliver on the promise of network slicing as we move closer to commercial 5G deployments:
- increase enterprise, MVNO and vertical engagement in business case development and requirements for 5G network slicing;
- learn through further trials to feed into R&D and business model development;
- work on process and organizational changes that will be needed to implement 5G network slicing;
- develop common definitions and parameters of slices across operators;
- work on incorporating machine learning, analytics and artificial intelligence (AI) into the development of network slicing.”
Akbar Rahman, Sr. Principal Engineer, InterDigital , as a sponsor of the report and participant in the related webinar, explains that to support dynamic slicing,
“some business relationship has to be available…the operator might have the most dynamic network slicing system available, but if they have no way to advertise the APIs, no way to charge for it…I believe the mobile operators will start becoming like Amazon or Google where they offer APIs and basically a credit card or some other electronic charging system… ”
Dr. Geng Wu , Intel’s Chief Technologist and Director of Wireless Standards and Advanced Technology observes:
“The new set of challenges and also the opportunity is how you actually transform the network with technology to serve the many new sets of applications, new industries and actually enable the next round of innovation.”
Caroline Chan , VP and GM, 5G Infrastructure Division, Network Platform Group, Intel adds:
“For 5G, you have to expand your ecosystem…start talking to folks you don’t normally talk to, you understand who actually pays the bill, who is willing to adopt your technology. So be willing to try, expand your horizon, and all this is possible because the underlying network is much more flexible and soft.”
Maria Cuevas, Head of Mobile Core Network Research, BT advises:
“At the end of the day, we need to make sure that the costs of operating these multiple virtual networks doesn’t exceed the additional revenues we are expecting to get from those services”
Sue Rudd, Director, Networks and Service Platforms, Strategy Analytics comments:
“Although the report outlines many challenges that remain for dynamic real time control of network slicing, CSPs can begin today to experiment with static service slices and new business models for differentiated services such as Converged Fixed and Mobile VPNs with On Demand Bandwidth and E2E SLAs.”
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