Network slicing can unlock $66 billion of industry opportunities – ABI

Analyst firm ABI research has had a bit of a spreadsheet frenzy and come to the conclusion that network slicing can create $66 billion of fresh commercial opportunities for telcos.

Just to remind you, network slicing involves prioritising portions of the network to more specific applications, such as high bandwidth, low latency or massive, low-power IoT. Ideally this can be done dynamically via all the virtualised cleverness we’ve been banging on about for so long and will enable MNOs to offer more bespoke services to various industries.

Unlocking all these new ‘verticals’ has the potential to massively increase the total available market to telcos, so long as they can both utilise network slicing to create useful communications services and work out out to both tailor them for and sell into these lovely new markets.

“Telcos (aka Mobile Service Providers or MSPs) are increasingly seeking to create services that are more differentiated and tap into the growth engine of the future, intrinsically linked to a superior experience for end consumers, and operational simplicity for enterprises and end verticals,” said Don Alusha of ABI Research.

“Network slicing revenues will eventually be on an upward trajectory, driven by digital, cloud, and security requirements of multiple industry verticals, particularly for the trio of manufacturing, logistics, and automotive. Realizing the full revenue potential is dependent on essential slicing infrastructure from vendors, and pertinent applications delivered by MSPs.”

Alush thinks BT and Swisscom are ahead of the game when it comes to this sort of thing and are showing the way for others. “This is encouraging and lays the foundation for widespread commercial deployments even before 5G diffusion. There are specific vendors in the market who are addressing end-to-end slicing scenarios that pull together a number of technologies, Nokia and Ericsson chief among them.”

“MSPs and vendors are pursuing different models of collaboration with vertical markets and growth for each market will be driven by premium services, revenue potential and ability to address existing challenges in the short and medium term. Vendors should aim to eliminate complexity through automation and ‘deep’ orchestration, a feat that calls for close collaboration with standard bodies to standardize and achieve alignment apt for commercial deployments and ecosystem integration.”

All good advice, but easier said than done.