CSP Insights on Network Slicing & Exposure

The telecommunications industry is transforming like no other time in its history. The fifth-generation (5G) mobile networks' global rollout will do much more than meet the increasing demand for data. More importantly, 5G will enhance our global society by maximizing automation, innovating communications, and enabling Sci-Fi like business services. Communications Service Providers (CSPs) will deliver these innovations through a number of technology enablers where network slicing and service exposure are two foundational offerings.

To get an informed view of the CSP journey into this new reality, Ericsson engaged with senior business leaders and experts from 27 Telco operators across the world to gather their opinions on the capabilities, values, and impacts of Network Slicing & Exposure. During the study, Ericsson researchers also cataloged service provider views on these technologies' effect on CSP enterprise segment business. Although the study findings unveiled a bright future for services providers willing to prepare for its coming, it also highlighted the need for focus and diligence by these same companies.

Figure 1 - Top CSP Enterprise Verticals/segment focus (Source: Insights from global Ericsson survey of CSP Enterprise Business)

From the top-line revenue point of view, network slicing and service exposure will play a key role in enabling new business model innovation through their ability to support brand new use cases. In terms of the industry verticals, most operators are focused on transportation, healthcare, and manufacturing. They also recognized that network slicing use cases clustered around smart surveillance, monitoring and tracking, and real-time automation as top choices. For service exposure, the leading contenders are smart asset tracking, mission-critical applications, and real-time gaming.

One very crucial observation was the redefinition of the entire telecommunications ecosystem. While most of today's operators are connectivity providers, they are now pushing to become service enablers or service creators. Exposure will play a key role here. This advance will also drive them to seek broad partnerships with system integrators and hyperscale cloud providers (HCP).

This innovative future also comes with some challenges. The two most significant challenge categories reference technology and the telco operating model. From a technology perspective, CSPs need to transform their legacy operations support systems (OSS) and business support systems (BSS). New network slicing and exposure enabled services will require significant upgrades to both. These technologies will, in turn, modify and simplify operational models. These operating model changes will allow the flexibility to bundle, scale, and monetize network and service assets. This path gives telcos the ability to publish a dynamic service catalog to application developers, cloud service providers, system integrators, and enterprises.

The blending of network connectivity and mobility with open access to service APIs will make these 5G networks global innovation platforms. On this platform, enterprises will have the capability to "seamlessly" choose different HCPs and their capabilities for varying needs. Service exposure is therefore essential to differentiating network providers to application and industry vertical solution ecosystems. The approach also calls for automation of service design, smart workload placements across environments (e.g., telecom network, public cloud, and edge), orchestration across all relevant domains, and service assurance using closed-loop automation.

Figure 2 - CSP Partnership potential. (Source: Insights from global Ericsson survey of CSP Enterprise Business)

To gain the advantages of network slicing and service exposure, CSPs must attain the required industry vertical knowledge and competency. This goal also demands partnerships with HCP's, application providers, system integrators, and vendors within targeted industries. Providers may also need to recruit knowledgeable key staff from those industries. An overwhelming percentage of survey respondents saw the need to develop the relevant sales channel or channel partner strategy as their biggest challenge. 

CSPs have great potential for finding new revenues through the enablement of network slicing and exposure. While there are several challenges to overcome, it is important to move forward with a focused and determined strategy. The full “slicing and exposure” study is available now for download. I also had the pleasure of talking to Ericsson experts about these findings. You can watch our conversations by visiting the Ericsson Network Slicing & Exposure main page. Please read the report, watch the videos, and use it to prepare your team to face the challenges ahead.

This article was sponsored by Ericsson Digital.