Cellular networks were built over several decades with features that provided a consistent experience for all users. However, over time, Mobile Network Operators (MNOs) realized the need for more options and customized capabilities as enterprises continued to scale.
Enter 5G — which through higher speeds, lower latency, and instantaneous connectivity — can unlock the benefits of next-generation networks, along with the new applications and services they support. In particular, network slicing has become a key feature of 5G as a versatile platform that lets businesses across industries adopt virtually any combination of use cases to fit their needs.
Take a smart factory for example. Within the same network, a network slice can be created to support the low-latency connection required to operate autonomous mobile robots, while another massive slice can be reserved for IoT sensors. First responders, such as police, firefighters and public safety officials, can leverage network slicing to ensure highly reliable, secure and high-performing data transmissions in emergency situations. In a different example, hospitals can create one high-throughput slice for large file transfers, another for tracking numerous pieces of medical equipment through IoT and another slice with high reliability for the long-term goal of remote surgeries. Whatever the specific needs of your business, you can get them with network slicing.
Benefits for operators and enterprises
Network slicing is one of the key enablers for 5G monetization, helping operators offer distinctly different network services to all customers while using the same physical infrastructure. As defined in 3GPP Release 16, network slicing lets service providers create multiple virtual networks — or slices — and tailor specific characteristics for each, determined by a Service Level Agreement (SLA). These characteristics include throughput rate, latency, security rules, peak data rate, and more. Due to these capabilities, edge services can unlock even more futuristic use cases that cannot be completely comprehended now.
Network operators can realize cost savings through shared resources, faster time to market, enhanced security and greater flexibility (in-building network applications can offload traffic, for instance) — since each slice’s attributes vary. They will also see increased automation, instantiating slices as needed and shutting them down on the fly when no longer required.
Enterprises looking to build their own private 5G networks can also implement network slicing in their network to run their businesses more effectively and efficiently. For example, multiple slices can be created within one network, reducing capital and operational costs and simplifying the complexities of managing a cellular infrastructure.
As the benefits of network slicing continue to grow and gain attention, operators will need a well-planned strategy to harness its full potential. That is where the benefits of 5G play a central role.
The 5G advantage
With 4G LTE, there was a rudimentary form of network slicing, as some resources could be reserved for specific types of customers. With 5G, however, a fully-virtualized Radio Access Network (vRAN) can be leveraged to maximize network slicing and the benefits it can bring. While traditional RAN (tRAN) can be used, operators using vRAN will find they have greater flexibility and scalability when deploying network slicing capabilities—and are able to more quickly instantiate new slices and bring them down when no longer needed.
ABI Research notes that over 55 network slicing trials are in place leveraging 5G technology, and we will likely hear about more tests as the GSM Association reports nearly 500 operators are investing in 5G globally, with over 200 commercial 5G launches. An industry that could see early gains from 5G-driven network slicing deployments is public safety, which for can leverage 5G’s ultra-reliable, low latency communications to deliver dedicated slices for mission critical applications using push-to-talk, data and video communications. Other early use cases will involve sensors and security cameras, which are essential for smart factory implementations.
However, the commercial market for 5G network slicing will depend on the MNO’s ability to provide their customers with the services they require and do so cost-effectively. For example, a school would want an SLA that guarantees throughput and reliability during the day but doesn’t have to pay for service at night when no students or faculty are in the building. If operators can design slices properly and guarantee quality of service, then network slicing will be successful. Airports will use IoT features to track checked baggage, strollers and wheelchairs, while seaports will use it to track containers from arriving ships to outgoing trucks. Interactive gaming studios, meanwhile, will need a specific network slice’s high capacity and low latency to tap new sources of revenue.
Conclusion
With the North American network slicing market estimated to grow to $410 million by 2027 (CAGR of over 23%), the various benefits of the network slicing opportunity have yet to be fully realized. We will likely see ordinary to extraordinary use cases across verticals, unlocking new business opportunities for operators.
MNOs will soon commercially offer the next generation of network slicing services that allow them to provide, for a fee, the 5G triad: enhanced throughput, ultra-low latency and machine-to-machine communications.
Enterprises will be able to take advantage of new use cases and services to meet their specific needs with improved efficiency, flexibility and security. Every business — from factories to hospitals — has significantly different communication needs. And network slicing will allow them to gain the functionality required to unlock new paths to productivity and tap the full benefits of next-generation networks.
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