Thursday, September 16, 2021

How Much Revenue from 5G Network Slicing?

We cannot yet know how much incremental revenue network slicing will generate for mobile operators, but Ericsson and Arthur D. Little suggest it could be as much as $200 billion by 2030. 


The hope is that most of that activity is new business, and not customers shifting from some form of current private network to a network slice. In other words, network slicing might, in some cases, cannibalize MPLS or SD-WAN. We just do not know. 


Still, most observers would likely agree that the new use cases for network slicing might happen as a support for many internet of things applications and use cases. The caveat is that “IoT” is sort of a stock answer for many revenue growth opportunities flowing from 5G, and is akin to retailers saying their quarterly financial results were depressed “because of weather.”


It is not untrue, but might also hide other issues. Similarly, IoT might be a genuine revenue booster for mobile operators. But right now we cannot say how big the boost might be. 


source: Ericsson 


Arthur D. Little expects the biggest deployments in health, government, transportation, energy, other utilities, manufacturing and media. 

source: Ericsson

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