Unlocking $200 billion: How N/W Slicing Could Drive Monetization for 5G Operators

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Abstract

ip with Arthur D. <a href="https://www.ericsson.com/en/blog/2021/9/the-three-waves-of-5g-network-slicing">Little, analyzes over <b>400 digital use cases in 70 industries</b> to understand the market impact, operational challenges, and revenue potential of 5G network slicing services</a>.</p><blockquote id="99c5"><p>Just as we have what used to be supercomputers in our pockets, our homes now require the telecommunications infrastructure of a small city</p></blockquote><p id="9c3a">-Stephen Levy</p><p id="d7c0">Network slicing isn’t just about business potential; it also enhances cost efficiency and wider-area coverage. By containerizing network components, CSPs can customize services and improve flexibility. Whether it’s mobile gaming, augmented reality, or enterprise solutions, network slicing unlocks the full potential of 5G monetization.</p><p id="85bb">For CSPs, understanding and leveraging network slicing will be key to staying competitive in the evolving 5G landscape. I captured several key underpinnings of this phenomenon in this short video (link given below).</p><p id="3ca8">This could trigger an entirely new wave of innovation frenzy, new players, and a new ecosystem of solution providers. The 5G SA architecture is designed for the creation of such innovations that fully utilize the power of virtualization. Watch this space for more.</p> <f

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Network slicing isn’t just about business potential; it also enhances cost efficiency and wider-area coverage.

A SLA-compliant suite of new services could become a lifesaver

5G Network Slicing can help craft new revenue streams (image: Dall-E3)

Network slicing, a pivotal concept in the 5G landscape, involves creating multiple virtual networks or “slices” within a single physical infrastructure. Each slice operates independently, with dedicated resources, services, and management. For communication service providers (CSPs), network slicing is crucial for monetizing their 5G investments.

A recent in-depth study by Ericsson and Arthur D. Little explored the value potential of network slicing for CSPs. The analysis revealed a staggering valuation of $200 billion by 2030, driven by a strong Compound Annual Growth Rate (CAGR) of about 51.1%. Unlike consumer-focused revenue, which shows limited growth, CSPs can capture new revenues by offering services to industries and enterprises.

Just as we have what used to be supercomputers in our pockets, our homes now require the telecommunications infrastructure of a small city

-Stephen Levy

Network slicing isn’t just about business potential; it also enhances cost efficiency and wider-area coverage. By containerizing network components, CSPs can customize services and improve flexibility. Whether it’s mobile gaming, augmented reality, or enterprise solutions, network slicing unlocks the full potential of 5G monetization.

For CSPs, understanding and leveraging network slicing will be key to staying competitive in the evolving 5G landscape. I captured several key underpinnings of this phenomenon in this short video (link given below).

This could trigger an entirely new wave of innovation frenzy, new players, and a new ecosystem of solution providers. The 5G SA architecture is designed for the creation of such innovations that fully utilize the power of virtualization. Watch this space for more.

About me: I write about life, tech, societies, and startups. I help startup founders get clarity, grow, and scale. I write regularly here, and many thanks, ILLUMINATION editors, for creating a writer’s profile for me.