Unique Ericsson and BT study: Network slicing is key for the IoT business case
A new report, Scalable network opportunities – an economic study of 5G network slicing for IoT service deployment, analyzes the economic benefits for network slicing in partnership with UK operator BT.
The IoT era has the potential to transform industry and society, and with 5G on the horizon, countless new business models become a possibility.
IoT services come with their own complex connectivity and performance-related challenges.
As such, operators must invest in technologies to meet efficiency and flexibility demands of these new services – making an alternative approach necessary in order to maximize revenue generation.
That’s where network slicing comes in – providing the capability to enable new business models across a broad industry spectrum. This solution allows operators to segment the network to support particular services and deploy multiple logical networks for different service types over one common infrastructure.
Benefits scale with services
While network slicing has been discussed among industry players, we are unaware of any other economic study that quantifies the benefits of this technology. But now, Ericsson has partnered with UK operator BT to carry out unique analysis – exploring the potential economic impact of network slicing.
Over a four-month period, we compared this solution with two alternative network scenarios for new IoT service deployments. This report shows that network slicing can result in significantly increased economic benefit for IoT service delivery and scalability – and the wide-ranging benefits of this solution can even be seen with a minimal number of service launches.
Key findings from the report
Network slicing enables new revenue generation, lower impacted opex and greater capex efficiency
Assumed investments made for automated network slice orchestration, to mitigate complexity of slice management, is paid back rapidly.
Benefits are seen even with a small number of service launches with network slicing, and increase with the scale of services added thereafter