Communication Service Provider (CSP) network infrastructure was once monolithic, making adapting resources a challenging and clunky process.
Network slicing changed that, enabling CSPs to partition their networks into multiple virtual networks or “slices.” Network slicing meets demands for agile networks that adapt, grow and evolve with new and emerging technologies.
The network slicing industry is forecast to grow at a CAGR of 23.2%, reaching $3bn by 2032, but the revenue produced by the technologies it supports is massive. An Ericsson report highlights 400 potential use cases, accounting for combined revenue of $200 billion in 2023. Network slicing gives CSPs a slice of that pie.
Here’s how and why networking slicing is a billion-dollar opportunity.
5G’s ultra-reliable, ultra-high-speed capabilities have already transformed global communications. Around ¼ of the world’s wireless devices will support 5G support by the end of 2023.
With massive 5G uptake comes a surge in demand. Global CSPs like AT&T, Ericsson Verizon, Vodafone and Huawei are seeking new methods to support advanced technologies that run off 5G infrastructure.
Network slicing has emerged as the answer. By containerising parts of the network to create “slices”, CSPs can build customisation and flexibility into their service offerings.
Each slice is managed and optimised specifically for the business or use case, enabling CSPs to deliver on highly specific services with customized service level agreements (SLAs). Network slicing is supported by AI and ML models, which help CSPs classify, optimise and auto-configure services to meet shifting requirements.
Fundamentally, network slicing combined enables CSPs to prioritise and deliver resources precisely where and when they’re needed.
A by non-means exhaustive selection of use cases of network slicing include:
· IoT: Network slicing facilities ultra-low-latency IoT for time-critical data transfer. This is vital for building autonomous vehicles and other technologies that process and react to data in near-real-time. From smart cities to health devices, network slicing is a Swiss Army Knife of tools for cellular IoT, bridging sensors with ultra-stable, ultra-fast networks for real-time decision-making.
· Cloud gaming: 5G network slicing advances cloud gaming, which processes games on remote servers and delivers them to users via a 5G connection. Ericsson optimised a 5G network slice for a cloud VR game in 2021. Network slicing helps guarantee low latency and high throughput even when networks are congested.
· Remote surgery: In 2019, Dr Antonio De Lucy of Spain assisted successful 5G tele-monitored surgery live in front of an audience, with 0.01 seconds of latency. Networking slicing enables CSPs to provide the intensive resources required for URLLC applications.
· Sports and broadcasts: AT&T used a cutting-edge 5G network at the Dallas Cowboys’ stadium to deliver real-time data insights and fan experiences with AR and VR overlays delivered through fans’ phones. Network slicing revolutionises outdoor broadcasting (OB) to cut costs and enhance performance. For example, Singaporean CSP Singtel used network slicing to deliver ultra-smooth streaming of the World Cup in 2022.
Networking slicing represents a billion-dollar opportunity for CSPs, enabling them to play a central role in new and emerging wireless technologies.
Here’s how:
· Improved resource utilisation: Network slicing breaks down monolithic network infrastructure and architecture, allowing CSPs to optimise their network resources by allocating them efficiently. This leads to reduced savings, improved performance, and the ability to accommodate fast-changing technologies. Slices can be ephemeral, e.g. offered for specific events, with minimal set-up time and costs.
· Enhanced customer experience: Network slicing supports B2C technologies such as cloud gaming and next-gen AR/VR experiences for gaming and sporting events. It helps bridge the gap between end-user devices and cutting-edge network infrastructure. CSPs can offer network slices designed for low-latency applications like gaming or high-bandwidth applications like video streaming.
· New revenue streams: Network slicing enables CSPs to create new revenue streams by offering flexible, bespoke services for different industries and applications. From energy to manufacturing and automotive, network slices slide into existing tech stacks with minimal client-side reconfiguration.
· Sophisticated IoT: Network slicing is a crucial enabler for 5G IoT, providing ultra-reliable low-latency communications (URLLC) and enhanced mobile broadband (eMBB). Business-critical IoT ideally requires 99.99%+ reliability and less than 1 ms end-to-end latency. Network slicing-enabled dynamic resource allocation supports these requirements.
· Collaboration with other industries: Network slicing is highly collaborative, allowing CSPs to work directly with businesses and address their specific requirements, deliver on SLAs, etc. Moreover, containerising the network is secure, as the dynamic nature of slices makes them much harder to compromise. Iterative security simplifies the process of collaborating with numerous customers.
Early evidence indicates the massive potential of network slicing to diversify CSP offerings, enabling a whole host of technologies that leverage 5G infrastructure.
Futuristic use cases such as remote surgery and cloud VR will likely become ubiquitous.
Private and public sector organisations will be able to mobilise slices as and when needed to adapt to fast-changing demands.
By adopting and implementing network slicing, CSPs can position themselves as leaders in the global technology landscape and unlock pioneering opportunities for growth.
Source: https://www.vanillaplus.com/2023/04/03/78143-network-slicing-the-billion-dollar-opportunity-for-csps-how-and-why/
