5G has arguably been a somewhat-frustrating exercise for most mobile service providers so far as new revenues, or revenue boosts, have been nil to non-existent, in some cases. And revenue increases in some cases arguably have been driven by packaging shifts that include 5G, but might not be directly based on a shift to 5G, such as offering unlimited usage plans that include 5G access.
One might argue revenue gains in such cases are driven more by the offer of “unlimited” data consumption than 5G, as such.
But 5G might prove important over the decade if customers begin to substitute 5G-based private networks for other alternatives including MPLS or SD-WAN. Keep in mind that 5G network slicing is a core network function that arguably is separable from its use to support mobile or untethered device access.
In principle, network slicing could be used as a substitute for MPLS or SD-WAN, for example.
So far, such moves arguably have been limited. Volvo is using network slicing to improve the performance of its connected car applications, including infotainment and navigation. Siemens:
Siemens is using network slicing to improve the performance of its industrial automation applications, creating dedicated networks for different types of industrial equipment, such as robots and sensors.
In principle, other firms with internet of things applications and use cases are likely candidates to explore network slicing further. Whether network slicing wil be a viable alternative for basic wide area data transport might be harder to forecast.
Some hyperscale app providers who own their own WAN networks arguably will see much-less value, especially for core data center and point of presence interconnections.
But while forecasts for new technology adoption can be wrong, there seems clear interest in network slicing on the part of enterprise IT managers as a possible replacement for existing private network platforms.
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