How long have we been talking about network slicing’s vast market potential?
This promising 5G network feature was supposed to have revolutionized telecom by now, powering tailored, on-demand services for eager adopters across industries. Yet, despite being technically capable of dynamically managing networks for precise customer needs, adoption has been slower than anticipated.
Why? Well, it’s not because network slicing has a technology problem. It works as designed.
Rather, there are operational, commercial and strategic issues that haven’t been sufficiently addressed.
Many operators view slicing through the lens of existing automation practices. They see it essentially as a more sophisticated version of what they’ve already got. But the reality in areas like automation, for example, is that slicing is fundamentally different from what is being done already. It requires dynamic, on-demand automation where processes can adjust in real-time based on evolving needs and analytical data (i.e., programmable automation). Because this is absent in existing deterministic workflows and scripting-based automation solutions, slicing can’t deliver on its promise of fluid, real-time adaptability.
The fallout is that operators, following familiar approaches, pursue "boxed" slicing solutions. In the end, they fail to unlock the transformative potential of slicing.
The barriers blocking slicing progress
Today, slicing is limited by rigid approaches to innovation, financial headwinds and an ecosystem that is still not viable enough to support its potential.
A bottom-up view of slicing has allowed network suppliers to dictate innovation and services, putting responsibility on vendors to deliver ready-made solutions with operators acting essentially as passive customers.
This is flawed because network slicing begs for a top-down approach where operators are actively engaged, defining business problems, developing use cases and treating the network as a framework to implement solutions.
It’s time for operators to get into the driver’s seat on advancing slicing innovation.
Even with the right approach, ecosystem challenges persist given limited infrastructure for startups and developers to test slicing use cases and collaborate on market exploration. Many startups are completely unaware of the capabilities slicing can deliver, getting way too far down the road on product development before engaging telcos for connectivity requirements.
Operators can change this dynamic and foster progress by establishing incubation labs or platforms that deliver value and generate interest and awareness about slicing.
Economic headwinds may be the most formidable challenge given it’s the one aspect operators have the least control over. They’ve already spent majorly on spectrum and 5G deployments, leaving comparatively little for further investment in an unproven opportunity.
Slicing on its own doesn’t justify 5G’s high costs and ROI simply has not materialized. This results in a focus on near-term revenue generation opportunities (e.g. reducing OPEX), which is understandable, but greatly hamstrings slicing in the process.
Those that can afford to do so need to get out of the mindset of traditional, controlled ecosystems and “buy it and it will work” technology approaches, if slicing is going to have a chance to succeed.
Why incubation and investment matter
Network slicing is an impressive technology, but the business innovation it unleashes is where the real magic happens.
With this in mind, operators must move beyond tech-focused labs and create incubation programs that prioritize business innovation. In an ideal world, these labs would provide an environment to explore markets and discover new use cases versus simply testing pre-determined technologies or APIs.
This open innovation model is proven and we’ve seen its success over and over again in Silicon Valley.
But make no mistake—this is not a “build it and they will come” proposition.
Startups are typically not even thinking about where connectivity will come from. That’s why we’ve traditionally seen connectivity bend to innovation, such as when Netflix crushed 3G networks with nary a concern for the impact on other bits being carried by the network.
By the same token, the rigid, inwardly focused environments created by telcos all but make collaboration with nontraditional players a non-starter. It’s like seeing two soulmates staring at a world of opportunity but looking in opposite directions.
What if instead, telcos acted as enablers? What if they provided platforms innovators can use to discover the vast potential of slicing? What if rather than dictating use cases that customers “need” they let startups and their customers dictate areas of demand?
Operators still have a critical role in this scenario: reducing the complexity and cost of this collaboration, offering tools and support, while shielding outside participants from the burdensome reality of telco business operations.
MVNOs are particularly well-suited to bridge the gap between startups and telcos to make slicing more accessible by aggregating demand, handling wholesale relationships and offering consistent, customized connectivity.
A proposed game plan for slicing success
Slicing success is not a slam dunk but it is also not out of reach.
I propose four directives for operators courageous enough to eschew the status quo and make the mental, financial and time commitments slicing deserves:
- Shift your mindset to a top-down approach. Stop viewing vendors as a primary source of innovation and drive your own frameworks. Focus on finding business problems and building your own solutions that address them, incorporating network elements like RAN and core as modular frameworks.
- Buy frameworks, not use cases. Do push your vendors to deliver flexible, configurable frameworks instead of prepackaged use cases. Confidently own the process of defining and controlling how your frameworks are used to ensure solutions align with business goals.
- Accept that slicing is a customizable process. Slicing will never be an out-of-the-box solution—it’s just too complex and multi-layered. Add value by enhancing every layer in the stack to make slicing as dynamic as would-be adopters need it to be.
- Prepare for AI-driven slicing. AI advancements are perfectly suited to support slicing ambitions, changing the status quo and putting telcos in the innovation driver’s seat.
Now it’s time for the usual disclaimer that this kind of transformation isn’t easy. That it is more complex than previous shifts, like moving from physical to virtualized to cloud-based networks. It will likely even require changes deep within the organization with the hidden upside of upskilling employees and evolving aging processes.
Slicing will not be for every operator. The hurdles are real and they are high. But the ones that claim to be serious about it need to start investing immediately in adopting an approach that provides the most opportunity for success.
With 6G starting to come into focus, these investments will lay the groundwork for success in the next generation of mobile connectivity and pursuit of new markets.
As user demands and service requirements evolve, network slicing offers an agile and scalable solution that allows network operators to adapt to changing needs without redesigning network infrastructure or architecture. It is truly a win-win scenario.
Differentiation, new revenue streams and an established leadership position in a transforming industry all wait as potential rewards.
Atila Horvat is Head of Network Slicing at Rakuten Symphony. Mention him in the comments to start a conversation.
.svg)
