New Ericsson-BT study highlights economic benefits of network slicing

New Ericsson-BT study highlights economic benefits of network slicing
Network slicing enables better utilisation of devices related by IoT
Published: 20 September 2017 - 8:24 a.m.
By: CommsMEA staff writer

When coupled with operational automation, network slicing is proven to be a smart investment to reduce OPEX and increase CAPEX efficiency, according to a new study by Ericsson with operator, BT. It further enables fast implementation and better utilisation of devices related to the Internet of Things (IoT).

The joint study looked at three ways to introduce new services into a network: via one multi-service network; via individual networks with dedicated resources; or via network slicing including operational automation. 

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.”

Lindgren added: “As applications and use cases for evolving technology become more complex, so will the characteristics of connecting them. Simply put, networks will need to adapt. The findings clearly show that network slicing provides a logical setup that can be tailored to extend into the as-yet undefined services of the future.”

Maria Cuevas, head of mobile core networks research at BT, said: “We’re positioned to bring millions of devices onto our networks as the IoT ecosystem grows. This study gives us guidance as to where our investments will achieve the best results. The more services we deploy with network slicing, the greater economic benefit we will see, enabling us to better serve our customers. In order to achieve this vision, it is important that the industry provides cost-effective solutions to support end-to-end orchestration and adds automation to the operations and management of network slices.”


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