As you know, network slicing is one of the most talked-about features of 5G technology, application subsystems can be assigned a dedicated slice of the mobile network, with guaranteed bandwidth, low latency, and availability, customized to the specific needs of an application use case, and this will transform the way with do business and we will be able to create new revenue streams from this opportunities.

Network slicing is one of the most highly anticipated capabilities and potentially an integral enabler for monetizing 5G. Slicing promises to enable more tailored flexible connectivity services, designed to meet end customers’ applications specific requirements, such as ultra low latency, high reliability mission-critical type services in Industry 4.0 or high bandwidth infotainment services. 

Network slicing provides a huge business potential for CSPs, which opens up many different opportunities across a wide range of use cases and industry segments: all those virtual and augmented realities, remote healthcare, autonomous vehicles and smart cities, to name just a very few.

Industrial digital revenues offer growth opportunities for CSPs. The current CSP business will have a 0.75% CAGR, compared to 12% for digital industrial. According to latest Ericsson report, a $200 BILLION opportunity for CSP network slicing can be derived from the total global digitalization revenues.

Below are the industries with the highest revenue potential for network slicing for CSPs:

Show me the money, baby

All right, let’s talk about getting new revenue streams by adding completely new services. Take healthcare for example, as a largest piece of a pie.

CSPs can use network slicing to provide isolated, low-latency and high-throughput connectivity for video streaming and assessment of patient conditions in an emergency vehicle. In addition, CSP could also partner with software and hardware developers to sell a complete solution.

Premium pricing

Also, slicing can generate revenue by enabling premium pricing and new business models. Demanding use cases can require custom made services which after all, result in higher fees

For example, a network slice to a transportation company that provides more bandwidth and network isolation to enable high-quality & secure monitoring for transport of high value goods that require a strict cold chain.

New business models and go-to-market roles: B2B2X

Network slicing opens up for new business models as the network becomes a platform for other businesses. This will result in new partnerships and go-to-market models. CSPs will play a different role in relation to the end-customer depending on the domain: