What is the business value of a 5G network slice, the ability to create an end-to-end virtual network with features optimized to fit particular use cases on a number of dimensions? To be sure, mobile operators are optimistic. But the very flexibility and quality of virtualized networks supporting 5G might mean potential customers have less incentive to buy network slices.
As you would guess, mobile operators see lots of upside, allowing them to create new products and services to sell to business customers. It is possible a single enterprise might require multiple custom networks. A vehicle may simultaneously require a high bandwidth slice for infotainment and an ultra-reliable slice for telemetry and assisted driving, for example.
On the other hand, it would be fair to note that past efforts to sell differentiated service levels to different customers (DiffServ, IntServ, QCI) have mostly failed. “There is no evidence of widespread commercial use of any of these solutions in the industry,” GSMA says.
Among the issues is the fact that 5G network performance at the edge will be so good, compared to prior networks, with latencies in milliseconds and bandwidth in gigabits per second.
Sure, the core network matters, but core fiber networks already feature low latency and high capacity. The big other variable is going to be how cloud computing operations are structured (at the edge or far end).
The point is that the normal operation of networks supporting 5G is likely to be so good, in terms of latency performance and bandwidth, that it will be difficult to sell latency-assured or bandwidth-assured services.
Network slicing, the logical partitioning of a physical network into independent virtual mobile networks, providing end-to-end logical networks, capable of providing an agreed service quality, might matter in other areas than latency and bandwidth, though.
The customizable network capabilities include data speed, quality, latency, reliability, security, and perhaps other services such as geographic coverage.
A network slice could span multiple parts of a single network (access network, core network and transport network) and could be deployed across multiple operators as well, the GSMA notes.
More controversial are potential uses of slices to support MVNOs or other wholesale customers.
So the issue is what value various mobile operators will see to creating a multi-tenant capability. Should that extend only to the operator’s enterprise customers, or should multi-tenancy also extend to enabling rivals (as traditionally is the case for network operators selling capacity to third party competitors who want to operate mobile virtual network businesses?
The easiest case, for a network operator, is using network slicing to better support its own retail customers.
For starters, network slicing implies the ability to tune the core network features to match different use cases.
An automated vehicle control network might emphasize ultra-low latency. An industrial internet of things network might emphasize low-bandwidth and infrequent communications.
A high-end consumer internet access use case might focus most on bandwidth. Health applications might value reliability and predictability above all else.
Existing consumer mobile and fixed network services are “one-size-fits-all.” That has operating and capital cost implications since most use cases arguably result in network resources being underused (stranded).
On the other hand, some use cases might require either high-bandwidth or low-latency, but not both. Some use cases benefit from higher levels of security; others are less stringent.
So network slicing offers the hope of more efficient networks that also can be customized, to an extent, to fit specific use cases.
Each network slice can be optimized to provide the required resources and class or service or quality of service to meet the diverse set of requirements for different use cases.
The issue is how much demand might exist for customized virtual networks on the part of enterprises, when 5G and core network performance already will be so good, on latency and bandwidth metrics.
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