Network slicing gains handset support but hurdles remain

Network slicing looks to have moved a little closer to commercial reality for communications service providers (CSPs) with successful Android handset trials. Nonetheless, hurdles to garnering serious revenues from network slicing remain.

The widespread take-up of any new mobile technology depends on support by affordable devices. So, it is significant that Ericsson and Nokia were able to demonstrate with Google that their network infrastructure can support multiple different network slices on a single device.

The separate trials showed that a single handset running the Android 13 mobile operating system can support both enterprise and consumer applications. Ericsson notes in a press release that “for the first time, a slice for carrier branded services will allow … CSPs to provide extra flexibility for customized offerings and capabilities.”

In addition, Android app developers will be able to request connectivity categories for their apps, as well as an appropriate slice with characteristics defined by the mobile network, explains Ericsson.

Nokia specified it conducted its trial on 4G/5G networks using UE Route Selection Policy (URSP) technology. It explains that URSP capabilities “enable a smartphone to connect to multiple network slices simultaneously via different enterprise and consumer applications depending on a subscriber’s specific requirements.” Nokia’s trial also included LTE-5G New Radio slice interworking functionality, which allows operators to optimize their use of spectrum and coverage.

However, as IDC explained in a blog earlier this year, several elements need to be in place to make network slicing a commercial success.

For example, 5G network slicing requires changes to CSPs’ business and operational support systems (BSS/OSS) so that they can handle the new parameters of network slicing services.

Another major determinant is the roll out of 5G SA networks. However, deployments are relatively thin on the ground. Recent figures from the Global mobile Suppliers Association (GSA) show that whereas 493 CSPs are investing in 5G, only 111 are investing in 5G SA.

Singtel is among the CSPs going full out for 5G SA. In July it said it has attained more than 95% 5G SA nationwide coverage, which it claims makes Singapore “the first country in the world to be fully covered by standalone 5G.”

And this month Telecom TV reported that NTT DoCoMo has announced a 5G SA service, with a link to a press release in Japanese.

In February this year Orange announced Nokia and Ericsson will supply its 5G SA networks across six European countries, with commercial deployment slated for 2023.

Yet much of the activity remains focused on 5G SA trials. Telefónica and Ericsson recently demonstrated end-to-end, automated network slicing on 5G standalone infrastructure, providing end-to-end orchestration for full slicing life cycle support and radio resources partitioning. BT meanwhile has claimed to be the first operator in Europe to aggregate four carrier components (4CC) in a 5G Standalone (SA) live network. 4CC allows telcos to deliver higher capacity and speed directly to customer device by combining several transmission bands into one connection, according to BT. And Spark announced the first 5G SA network trial in New Zealand

However, most operators still use the 5G non-standalone (NSA) architecture that relies on the LTE mobile core.

“It might be the end of 2023 before the majority of commercial 5G networks are using the SA mode,” according to IDC.

Indeed, IDC does not expect to see general commercial availability of 5G network slicing before 2023 – with the exception of China, which has the most mature 5G market. Nor does it foresee global revenues from slicing exceeding a billion U.S. dollars before 2025. And even in 2026 IDC, forecasts slicing revenues will amount to approximately $3.2 billion, of which more than 80% will come from China.

"5G network slicing holds great potential as the foundation for new classes of mobile operator services," according to Daryl Schoolar, research director, Worldwide Telecommunications at IDC. "However, IDC expects the commercial impact of services based on network slicing, except for operators in China, will be very limited. There are several variables that need to come into place before operators see significant positive revenue growth from slicing."