The value of network slicing
Network slicing has advanced to the extent that leading service providers are currently leveraging its capabilities within commercial networks. This allows them to address a wide range of use cases that benefit from differentiated connectivity.
Key findings
Network slicing is in the early stages of commercialization, where successful pilots are being converted into commercial offerings with the potential to scale.
Network slices do not need to be custom-made for each unique purpose, and service providers can start with a few of the most important types of slices.
Network slicing represents an important stage beyond best-effort connectivity, on the road to enabling capabilities that can be enhanced through network APIs.
5G standalone (SA) architecture is the foundation for network slicing and is widely deployed by T-Mobile in the US. Network slicing empowers service providers to optimize network resources to meet the diverse needs of a wide range of services. By transforming the physical network into multiple logical networks on a shared infrastructure, service providers can create tailored network slices designed to serve specific business purposes. These slices contain customized network resources and configurations that can either be allocated individually or shared among multiple enterprise customers based on their requirements. Network slices can be optimized for characteristics such as latency, bandwidth, reliability and security. This flexibility allows service providers to address specific customer demands and emerging vertical markets.
Network slices do not have to be custom- made for each unique purpose, and service providers can start with a few of the most important types of slices. Prior to introducing guaranteed performance levels, which are costly from a resource-allocation perspective, service providers can unlock new business models by ensuring that prioritizations between different types of slices are maintained for different use cases. A large share of the existing best-effort connectivity will remain as it is, and network slicing will focus on securing the required characteristics for the most valuable business- and mission-critical applications.
The value of 5G network slicing
As the role of mobile networks evolves, from mainly supporting consumer-grade services to include facilitating business- and mission-critical services, it becomes imperative that all services are adequately supported. This can be likened to how essential societal infrastructure, such as roads and energy distribution systems, can accommodate the varying, distinct requirements of consumers, businesses and governments.
A state-of-the-art mobile network features a high-performance infrastructure. Network performance encompasses more than just the “speed” metrics at which traffic is delivered to users. It also includes peak rates for data transmission to and from users, low latency from the cloud to users and precise positioning capabilities. When these individual capabilities are combined and integrated into a network slice, they have the potential to enhance connectivity experiences for specific use cases.
The main benefits of 5G network slicing for business and government customers are that it:
- leverages the widespread coverage of existing 5G networks, without the need to build a dedicated single purpose network
- ensures that business- and mission-critical services can take full advantage of one multi-purpose infrastructure
- accelerates digital transformation with applications that have access to more network capabilities than previously exposed
For service providers, 5G network slicing offers:
- expanded value propositions from universal to differentiated connectivity
- new business models coupled to attributes other than downstream data traffic volumes
- engineered networks to support a mix of different connectivity needs
Network slices can be defined in many ways, and the initial challenge is to successfully turn pilots and proofs-of-concept into scalable solutions. Therefore, scalable solutions are required so that networks can manage the life cycle of a slice and the associated business models.
Network realization to support network slicing
Since network slicing was introduced as a concept, the ecosystem has matured in multiple steps through technology innovations in the core, RAN, orchestration and monetization domains.
5G SA adopters can take advantage of network slicing across these four domains:
- RAN slicing enables the sharing of radio resources and dynamically optimizes radio resource allocation, so they are occupied as long as needed. Slice-aware RAN quality of service (QoS) implementation enables the allocation of resources based on subscriber and service requirements.
- The core network enables the creation of slices with a dedicated or shared user plane, control plane and data layer network for supporting different service needs over one common infrastructure. It also controls traffic steering among the different network slices. Orchestration and automation enable the provision of new slices, adjustment of resources and optimization of network performance to meet customer needs, as the number of slices grows. Service assurance monitors the service performance to secure the service-level agreements.
- The monetization layer manages the contracts and service-level agreements, billing and charging for the different slices, as-well-as including exposure functions to enable monetization of network-slicing capabilities in the broader ecosystem.
On the subscriber side, user equipment route selection policy (URSP) technology can steer traffic on an application basis through defined, end-to-end slices in the network. It allows for multiple network slices on the same device, with traffic detection and steering capabilities. URSP is supported in devices and enabled on the network side via the core network.
Use cases taking advantage of network slicing
T-Mobile has leveraged network slices to explore a diverse range of business opportunities and obtained valuable experiences in many areas including:
- the value of embracing the 5G SA architecture as a foundation for network slicing
- the importance of collaborating extensively across the broader ecosystem to determine which slices are ready to move from pilots to commercial offerings
- the potential to improve well-established business services like video conferencing through increased reliability
- the business models that make sense for both application and connectivity providers and the beneficiaries of a specific type of network slice
These explorations have uncovered valuable insights on network slices coupled with specific use places, industries and use cases.
Figure 18: Four network slice use-case realizations
Unlocking value from network APIs
To stimulate innovation across the mobile ecosystem, T-Mobile has also allowed application developers to access network slices through network APIs that can be leveraged for specific service-level category requirements. These network slices can therefore target premium user experiences and business-critical parts of digital transformations where universal connectivity services may not be adequate. These connectivity innovations encompass both what to include in each slice and how developers can access richer network capabilities. Previously, application developers have had access to differentiated cloud services, for compute and storage capabilities, but relied on a single, universal type of connectivity service. The addition of access to differentiated connectivity is a new tool in the toolbox for application developers.
Future possibilities and eco-system beneficiaries
Network slicing is in the early stages of the commercialization journey, with successful pilots being converted into commercial offerings with the potential to scale. Multiple stakeholders play key roles in advancing network slicing to the next level of maturity:
- Communications service providers understand the network slicing value proposition and can accelerate the pace of realization, with 5G SA as a required enabler.
- Enterprises can take advantage of different types of network slices for business-critical applications, to enhance their digital offerings and for applications that enhance internal efficiencies.
- Application developers, both for enterprise customer-facing applications and for enterprises’ digital transformation purposes, can consider access to differentiated connectivity as a vital complement to differentiated cloud services.
- Regulators benefit from understanding the full potential of network slicing, in order to secure the innovation potential of network slicing applicable to multiple go-to-market models.
- Business model innovators can play a key role in refining network slicing models to ensure that network capabilities and value propositions are well-aligned.
After having pioneered the deployment of 5G and, subsequently, building on its foundation of a nationwide 5G SA network, T-Mobile is accelerating its ambitions of bringing differentiated connectivity to market with tools like network slicing. Network slicing represents an important stage beyond best effort connectivity on the road to capabilities that can be enhanced through network APIs.