Network slicing will not only allow operators to dedicate a portion of their network to a certain functionality or a particular customer, it will also allow them to grow their revenue. A new study by Ericsson Research found that by introducing new services on network slices, operators can generate up to 35 percent more in revenue.
The study, which was compiled over a five-year period, compared the opex and capex spending from operating one big network to operating one network using network slicing. The study assumed that a mobile broadband service had 25 million subscribers on the network and launched up to 40 unique services per year, each requiring a different network design and validation.
Ericsson’s report found that not only can network slicing increase revenue, it can also improve business flexibility through service level agreements (SLAs) and billing, which can result in better customer satisfaction.
Network slicing also can allow services to be deployed faster if the network is automated.
And finally, network slicing also can make it easier for service providers to offer niche services or temporary services because it makes it possible to isolate a portion of the network without impacting the rest of the network functionality.
Of course, it’s not a big surprise that Ericsson is an advocate for network slicing. In February the company launched a 5G-ready platform that included the 5G New Radio (NR), 5G core, digital support system, and network security. The company said that its 5G core will make network slicing possible and even will allow operators to dedicate a slice of the network to a certain functionality or a particular customer.
The company said its 5G-ready platform is software upgradeable to 5G and will be standards compliant with the 3GPP-based standard that is expected to be released later this year.
But Ericsson is not alone. Huawei also is incorporating network slicing into its 5G core network. The company said it is currently in the second phase of its 5G R&D trial with the Beijing Lab of China Academy of Information and Communications Technology. Specifically, the test will look at critical 5G service procedures, network slicing, and mobile edge computing.