Network slicing: A key technology for 5G and its impact on mobile virtual network operators

At h a n a s i o s L i o u m p a s , P h . D. C y t a H e l l a s , R & D d e p a r t m e n t

T h e s s a l o n i k i , G r e e c e 2 0 1 7

contents

m o b i l e v i r t u a l n e t wo r k o p e ra t o rs ( M V N O ) e c o sy st e m c h a l l e n ge s fo r M V N O s i n l e ga c y n e t w o r k a rc h i t e c t u re s n e t w o r k s l i c i n g : a 5 G ke y e l e m e n t n e t wo r k s l i c i n g i m p a c t o n M V N O s c o n c l u s i o n s

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MVNO ecosystem

MNO

radio spectrum

core network e lements e . g . , H L R , G M S C , G G S N

reta i l e lements e . g . , b i l l i n g , c u s t o m e r c a r e

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MVNO ecosystem

MNO service provider

rad io spectrum

core network e lements e . g . , H L R , G M S C , G G S N

reta i l e lements e . g . , b i l l i n g , c u s t o m e r c a r e

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MVNO ecosystem

MNO thin

MVNO

service provider

rad io spectrum

core network e lements e . g . , H L R , G M S C , G G S N

reta i l e lements e . g . , b i l l i n g , c u s t o m e r c a r e

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MVNO ecosystem

MNO thin

MVNO

full MVNO

service provider

rad io spectrum

core network e lements e . g . , H L R , G M S C , G G S N

reta i l e lements e . g . , b i l l i n g , c u s t o m e r c a r e

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MVNO ecosystem

MNO thin

MVNO

full MVNO

service provider

rad io spectrum

core network e lements e . g . , H L R , G M S C , G G S N

reta i l e lements e . g . , b i l l i n g , c u s t o m e r c a r e

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C y t a i s t h e o n l y f u l l M V N O i n G re e c e

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MVNO ecosystem 1

Global MVNO market size, by region, 2012 - 2022 (USD Billion) *https://www.gminsights.com

M V N O m a r ke t s i ze i n c re a s e s 1

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MVNO ecosystem 1

Global MVNO market size, by region, 2012 - 2022 (USD Billion) *https://www.gminsights.com

M V N O m a r ke t s i ze i n c re a s e s H i g h va r i a t i o n s o f M V N O s u b s c r i p t i o n s o ve r t i m e

MVNO subscriptions (% of total)

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MVNO ecosystem 1

Global MVNO market size, by region, 2012 - 2022 (USD Billion) *https://www.gminsights.com

M V N O m a r ke t s i ze i n c re a s e s H i g h va r i a t i o n s o f M V N O s u b s c r i p t i o n s o ve r t i m e

M a ny “c a s u a l t i e s ” ! ! ! ( e n d o f b u s i n e s s w i t h i n m o n t h s f r o m l a u n c h )

MVNO subscriptions (% of total)

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challenges for MVNOs in legacy network architectures 2

low profit margins for MVNO M N O

P r o f i t m a r g i n s

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challenges for MVNOs in legacy network architectures 2

low profit margins for MVNO M N O

P r o f i t m a r g i n s

in i t ia l contract with MNO

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challenges for MVNOs in legacy network architectures 2

low profit margins for MVNO M N O

P r o f i t m a r g i n s

in i t ia l contract with MNO

abi l i ty to be ser ved by

mult ip le MNOs

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challenges for MVNOs in legacy network architectures 2

low profit margins for MVNO M N O

P r o f i t m a r g i n s

in i t ia l contract with MNO

abi l i ty to be ser ved by

mult ip le MNOs

opt imizat ion of wholesa le/reta i l

prof i ts

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challenges for MVNOs in legacy network architectures 2

i n i t i a l co nt r a c t w i t h M N O

deep knowledge of the market and the competition

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challenges for MVNOs in legacy network architectures 2

i n i t i a l co nt r a c t w i t h M N O

deep knowledge of the market and the competition

realistic network/subscribers dimensioning

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challenges for MVNOs in legacy network architectures 2

i n i t i a l co nt r a c t w i t h M N O

negotiation of wholesale prices

deep knowledge of the market and the competition

realistic network/subscribers dimensioning

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challenges for MVNOs in legacy network architectures 2

i n i t i a l co nt r a c t w i t h M N O

negotiation of wholesale prices

deep knowledge of the market and the competition

realistic network/subscribers dimensioning

avoid getting blocked from services, e.g., 4G

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challenges for MVNOs in legacy network architectures 2

a b i l i t y to b e s e r v e d b y m u l t i p l e M N O s

MNO #2

MNO #3

MNO #1

MNO #N

. . .

redundancy

flexibility

power to negotiate wholesale prices

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MVNO

challenges for MVNOs in legacy network architectures 2

o p t i m i za t i o n o f w h o l e s a l e / r e ta i l p r o f i t s

MNO #2

MNO #3

MNO #1

MNO #N

U s e r p r o f i l e s

M N O w h o l e s a l e p r i c e s

Really hard with legacy technology

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network slicing: a 5G key element 3

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network slicing: a 5G key element 3

E2E Optimization Access

Network

Core

Network Services/Applications

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network slicing: a 5G key element 3

E2E Optimization Access

Network

Core

Network Services/Applications

Enhance the network slicing

concept

UE based slicing (e.g., VIP users)

Service based slicing (e.g., video stream, smart home)

Inter-slice resource allocation

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network slicing: a 5G key element 3

E2E Optimization Access

Network

Core

Network Services/Applications

Enhance the network slicing

concept

UE based slicing (e.g., VIP users)

Service based slicing (e.g., video stream, smart home)

Inter-slice resource allocation

RRH

RAN slicing

UE Service UE

UE

UE Service

MME SGW-

Control PGW-

Control

PGW-Data

PGW-

Control

PGW-

Control

MME+SGW-Control

SGW/PGW-Data

Core Slice#1

Core Slice#2

Core Slice#3 MME

SGW-

Control

SGW-Data

*Mobile-cord project Core slicing

Inter-slice resource allocation

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network slicing impact on MVNOs 4

o p t i m i za t i o n o f w h o l e s a l e / r e ta i l p r o f i t s Core network in a box

core network evolution

network functions virtualization

all IP networks

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network slicing impact on MVNOs 4

o p t i m i za t i o n o f w h o l e s a l e / r e ta i l p r o f i t s legacy networks are monol i th ic in terms of QoS d i f ferent iat ion

Core netwo

rk QoS

legacy network

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network slicing impact on MVNOs 4

o p t i m i za t i o n o f w h o l e s a l e / r e ta i l p r o f i t s network s l i c ing enables a fu l ly dynamic way of network resource a l locat ion

Core

QoS

QoS

QoS

QoS

QoS

QoS

QoS

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Network s l i c ing

network slicing impact on MVNOs 4

Core

QoS

QoS

QoS

QoS

QoS

QoS

QoS

o p t i m i za t i o n o f w h o l e s a l e / r e ta i l p r o f i t s

u s e r p r o f i l e s s e r v i c e s / a p p s n e t w o r k s e l e c t i o n

Network s l i c ing and NFV are the enablers for a modular dynamic network

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mult i -operator network s l i c ing

conclusions 5

At h a n a s i o s L i o u m p a s , P h . D. C y t a H e l l a s , R & D d e p a r t m e n t

a t h a n a s i o s . l i o u m p a s @ h q . c y t a . g r

5G technolog ies wi l l :

• improve user QoS exper ience • help te lcos to max imize revenue

• boost the creat ion of new bus iness models

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