What is network slicing?
Network Slicing in simple terms is the ability to create a separate network with specific characteristics for a selected application/use-case from a common pool of network resources in the service provider's control. For example, various industrial applications will have different requirements such as latency, bandwidth, number of devices to be supported. Network slicing facilitates the creation of a slice of network tailor-made for the select application from the operator's network resources such as access, transport and core network using technologies such as NFV and SDN. We are working with leading operators such as NTT Docomo in piloting various industrial use-cases. You can read more about it here.
What kind of ground work is needed from operators to offer network slicing?
Ground work for network slicing starts with NFV and SDN frameworks that the operator creates for their network architecture. Investment in common platforms, automation, distributed cloud infra and security systems are some of the main areas of work to realize network slicing. You can find more details at our hot topic on network slicing.
What is the business case for network slicing?
Network Slicing is primarily targeted for applications such as IOT, Augmented reality, Capacity or coverage on demand. From a business perspective, Network slicing enables new revenue generation, lower opex and greater capex efficiency resulting in significantly increased incremental contribution to the bottom line through new service launches. Ericsson, therefore, partnered with UK operator BT to investigate what economic impact network slicing could have. The study shows that network slicing results in significant improvement in time to market, reduced opex and better utilization of resources. You can find more details of the study here.