Network Slicing Allows CSPs To Recognize Many Advantages, Including Enhanced Revenue Streams
5G technology has brought significant advancements in data speeds, low latency, and ultra-reliability. However, the diverse requirements of consumer and enterprise applications demand a more efficient approach to delivering differentiated services. With network slicing – a concept that allows the creation of virtual networks with specific performance characteristics – Communication Service Providers (CSPs) can leverage automation to offer reliable and scalable networking, catering to various application types and enhancing revenue streams.
What is Network Slicing?
Network slicing enables CSPs to operate multiple virtual networks, or “slices,” on a shared network infrastructure. These slices can offer distinct network performance characteristics, such as bandwidth, latency, and availability, to cater to specific application requirements. With 5G, network slicing expands to encompass end-to-end services across mobile, fixed, transport, and core networks, delivering an enhanced user experience and ensuring customer satisfaction.
Revenue Growth with Network Slicing
CSPs are seeking new revenue growth opportunities in the consumer market by partnering with vertical industry enterprises and driving average revenue per user (ARPU) growth. The capabilities of 5G networks, including increased bandwidth, speeds, security, and low latency, present a valuable proposition for CSPs to tap into various markets. By leveraging network slicing, CSPs can package these capabilities into differentiated services based on service-level agreements (SLAs), paving the way for profitable growth.
Network Slicing Use Cases
Network slicing facilitates a wide range of use cases in industries such as automotive, manufacturing, logistics, sports, and entertainment and enables application-specific network performance. For example, in an automotive use case, passengers can enjoy mobile streaming services while the vehicle provides sensor data to manufacturers and traffic control agencies.
Monetizing Network Slicing
The growth of 5G revenue relies heavily on enterprise services, B2B2X business models, and ecosystem collaborations. A survey of 100 CSPs suggests that approximately 60% of new 5G revenue will come through B2B2X models, highlighting the importance of partnerships, ecosystems, and platform economies. Network slicing – along with Network-as-a-Service (NaaS) or Network Slice-as-a-Service (NSaaS) – unlocks new opportunities for CSPs to monetize their networks by automating lifecycle management and closed-loop operations. Similarly, network slicing also provides enterprises with flexibility for adjusting SLAs which can help them to achieve profitability.
Orchestrating and Automating Network Slicing
Orchestration is vital to exposing network capabilities as consumable services for customers and sets the policies and methods for delivering commercial services with their associated SLAs. This allows devices to be connected to the appropriate network slice and ensures they receive the agreed-upon and committed service levels.
In the 5G era, where networks are virtualized and programmable, orchestration becomes vital for adapting networks to specific customer needs and enabling automation. Automated orchestration streamlines the creation and modification of network slices, reducing the time required from hours or days to minutes. Nokia’s Digital Operations Center, Network Services Platform, Nokia Self-Organizing Networks (SON), NetAct, and Network Operations Master can all facilitate the orchestration and automation of network slicing, empowering CSPs to deploy and manage network slices rapidly.
Nokia’s Network Slicing Solutions
Nokia has been at the forefront of developing network slicing capabilities, initially for 5G networks and later expanding them to 4G networks. Nokia’s Network Slicing products include the Digital Operations Center, which provides automated cross-domain service and network slice management; the Network Services Platform, enabling cost-effective delivery and assurance of transport and core network slicing services; Nokia Self-Organizing Networks (SON), a multi-vendor radio network optimization solution; and the NetAct and Network Operations Master, which support slice operations and automation in the radio and core domains. Nokia’s comprehensive portfolio of network equipment, software, services, and licensing opportunities positions them as a leader in developing and deploying 5G networks, allowing CSPs to unlock the full potential of network slicing.
Network slicing revolutionizes how CSPs deliver services by providing application-specific network performance characteristics. With the growth of 5G, network slicing opens up new revenue opportunities across industries and drives profitable growth for CSPs. Nokia’s network slicing solutions empower CSPs to orchestrate and automate the creation and management of network slices, ensuring efficient and scalable networking.
About Infinity Technology Solutions
Infinity Technology Solutions specializes in broadband and critical communications infrastructure development. We help our channel partners create private wireless networks 4G/5G, microwave backhaul systems, IP/MPLS, and optical networking technology.
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