Report Overview

Network Slicing – business transformation opportunities from media to emergency services to MVNOs

Network slicing is a key feature of 5G networks, allowing MNOs to allocate independent virtual networks to customers with specific capabilities and quality of service guarantees.
In addition to improved performance, network slicing will create new business models that will bring new revenue streams for MNOs.
There are a range of opportunities across media, gaming, emergency services, IoT, transport and MVNO market segments. 
Today’s industries are becoming more heavily reliant on communications and network services, especially mobile networks which in some cases have superseded fixed networks for coverage, access convenience and even performance. The Australian and New Zealand mobile markets sit at A$22.3bn and NZ$2.9bn respectively, with between 3% and 5% typical yearly growth rates[1]. As telcos look towards more sources of growth, the arrival of 5G mobile networks has promised the delivery of enhanced performance across all areas of network capability, ranging from capacity to latency and energy efficiency.


Key takeaways

Network slicing – a new way to enable services

  • Commercial progress

Benefits of Network Slicing

  • Over-the-top services
  • Performance guarantees
  • Operational benefits and cost reductions
  • Challenges

The NaaS opportunity for telcos

  • Entertainment – Media and Gaming
  • IoT
  • Emergency Services
  • Private Enterprise Networks
  • MVNOs
  • Implications for the Australian and New Zealand mobile markets

List of charts/tables

Figure 1. 4G vs 5G performance metrics

Figure 2. Illustration of network slicing

Figure 3. Differences between conventional mobile network and a network slicing enabled version

Figure 4. Examples of OTT services

Figure 5. Examples of configurable parameters

Figure 6. Willingness to pay for a 5G enabled sports streaming service

Figure 7. Willingness to pay for 5G by mobile gamer genre

Figure 8. Estimates for the impact of network slicing on mobile industry worldwide

Figure 9. Summary of network slicing impact on various telco stakeholders