Verizon gives away network slicing to consumers

The US telco on Thursday launched Enhanced Video Calling, which does exactly what its name suggests: it provides a better experience for consumers using video calling on the likes of Facetime, WhatsApp and Zoom.

At present it is available only for iPhone users – iPhone 14 or newer, to be precise – and only for customers with an Unlimited Ultimate or Business Unlimited Pro 5G plan. And only in select 5G Ultra Wideband coverage areas.

And most noteworthily of all, the telco is offering Enhanced Video Calling at no additional cost to customers who meet the above criteria.

That seems like a strange move, since network slicing has long been touted as a 5G monetisation tool for telcos. For the most part we were thinking about the enterprise market, where there are myriad applications that could require mission-critical connectivity and a willingness to pay for it. But there are also possibilities in the consumer space too, this Verizon offer being a prime example; it is pitching the technology as a way for end users to get a better video calling experience even in congested areas.

Clearly it doesn't think they would be willing to pay for it though...or at least not yet.

It's not the only one. Deutsche Telekom recently commercially launched its 5G+ Gaming tariff, which also relies on network slicing to provide a lag-free gaming experience. But, despite calling it a tariff, it too has elected to give it away for free, in this case via its loyalty programme. At launch it was only available on the Samsung Galaxy S24 Ultra smartphone, but Deutsche Telekom said it was working on a rollout to other models.

It's anyone's guess whether the German incumbent and Verizon will seek to extract revenue from network slicing in the future. Much will doubtless depend on how the competitive landscape looks; no one will want to be an outlier in billing for something others are giving away for free.

For now though, arguably the most important thing with regard to Verizon's launch is that it is using and explaining the term network slicing to consumers. That suggests it plans to lean even further on the strength of its network and connectivity, rather than winning over customers purely through smartphone ranges, add-ons and so forth.

And in turn that perhaps indicates that this is just the beginning for consumer applications powered by network slicing, whether Verizon bills for them directly or uses them as a customer acquisition or retention tool. That could be viewed as a form of 5G monetisation...although given the eye-watering sums Verizon has spent on spectrum and network rollout, we're hardly talking about return on investment.