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more heavily reliant on communications and network services, especially mobile networks which in some cases have superseded fixed networks for coverage, access convenience and even performance.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. 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.
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
The NaaS opportunity for telcos
- Entertainment – Media and Gaming
- Emergency Services
- Private Enterprise Networks
- 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