21 Sep 2017

Ericsson and BT highlight network slicing’s economic benefits for MNOs

A study performed by Ericsson and BT claims that mobile networks using 5G’s network slicing capabilities are likely to generate more revenue and lower operating costs compared to traditional multi-service networks or the use of multiple networks with dedicated resources.

It claims that network slicing is the fastest, most cost-effective way to achieve service scalability and that investments in network automation payback rapidly.

According to the study’s calculations, network slicing resulted in the equivalent of a 40 per cent reduction in OPEX, a 35 per cent increase in revenue potential and a 150 per cent increase in economic benefit, under its baseline assumptions. The benefits were only assessed from a core network perspective.

Network slicing allows operators to segment the network to support particular services and deploy multiple logical networks for different service types over one common infrastructure.

Marielle Lindgren, head of Ericsson United Kingdom, said: “We found that over a five-year period, introducing new services by using network slicing and operational automation generated 35 per cent more revenue than by using one multi-service network. The revenue increased 15 per cent when compared to several networks with dedicated resources, demonstrating how the technology enables market stimulation, faster time to market, and opportunities from smaller niche services.