Network Slicing Opens Up New Monetization Possibilities In 5G
[Summary: Network slicing helps network operators to build a customizable, cost-effective network solution for every business kind. This new monetization model will enable operators/CSPs to give: Network-slice-as-a-Service.
The slices are used as per the need of the enterprise. One or more than one slice (in form of bundles) can be offered for different purposes. This is a key element toward an automated demand-specific system.]
The 5G Launch is set to revolutionize the way we use mobile networks. Network slicing is one of its USPs i.e. Unique Selling Proposition. It allows for the creation of different virtual networks that can be tailored to specific user & business needs as well.
Though it’s in the ‘budding’ stage & yet to bloom. Network slicing has great potential- to enhance our usage & payment models for mobile networks and services.
What is Network Slicing?
Network slicing is an important 5G technology feature that allows network operators to create virtual, logical networks from a single network- that can be customized for different types of users, applications, & businesses.
This means that each user can have an individualized tailored experience with different levels of Quality of Service(QoS), depending on their needs.
How does network slicing work?
Sceptics have been quick to question how 5G will be monetized. Because they are not sure what new services and applications will be feasible or economically viable. Yet, as outlined in this article, there is a very specific answer to these sceptics: network slicing.
- Network slicing is the term for taking that one data pipe and being able to slice it up: into many different virtual networks by applying different software, each having its own “virtual carrier” identity.
- An Ericsson report showcased the strength of multi-pay slicing of a single physical network based on the Dynamic Selection Capability This means to select slices that can be invoiced to different receivers, even from the same smartphones.
- The dynamic network slice selection also ensures that the right network capacity is employed at the right time- when a gamer experience high-quality mobile gaming or an online store tracking its orders.
- Further, the premium 5G network can deliver a low-latency-high-bandwidth experience for VR services.
- Let’s understand it in a fun way: Imagine you have a butter stab on your plate to distribute it among your peers. Some of your peers want a bigger butter slice while others ask for smaller ones.
- No prizes for guessing, this is what you all will do. You’ll slice up the stab accordingly & share it. And this is exactly the concept used herein.
- For example, if a business serves in the communication, entertainment, and internet domain & needs only mobile broadband services, network slicing gives you the flexibility of serving the exact slice from a single 5G physical network.
- Or let’s say a business deal in retail, shipping, manufacturing, & needs machine-to-machine configuration, Again, you can give your massive IoT slice for the purpose.
Benefits of Network Slicing
One product doesn’t fit all requirement types– businesses & CEOs nowadays know it.
Network Slicing in 5G puzzles out exactly that. It allows wireless carriers to sell different slices of a network’s capacity on a per-need basis. This opens up a whole new monetization structure for them.
- By creating virtual networks that can be customized for different users, operators can offer a variety of services. And that can be tailored to the specific needs of each user. Obviously, this will result in higher revenues and more satisfied customers.
- Additionally, network slicing can help operators to manage their networks more efficiently. By reducing congestion and improving performance.
Opening up new monetization possibilities in 5G
- This flexibility opens up a whole new range of monetization possibilities for service providers. For example, they could create a high-speed network slice for gamers or a low-latency slice for businesses that need real-time data.
- Service providers could also offer different pricing models for different network slices. For example, they could charge a premium for a high-speed slice or offer discounts for users who only need a basic service.
- Finally, this also means that operators can now create new monetization models to generate revenue & to serve spot-on from 5G services.
For example, they could offer premium QoS levels to heavy data users, or charge for access to certain high-demand applications.
With network slicing, the possibilities are endless. And it opens up a whole new world of opportunities for operators to explore. It’s a smart way to slice up your network into separate functions so that you can mix and match services to suit different customers’ needs.
These 5G slices offer different pricing models. To serve every business with its specific needs of the system. So, if you’re looking for ways to monetize 5G, be sure to keep an eye on these exciting features!