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.
Cyta Hellas, R&D department

Thessaloniki, Greece 2017

 contents

1 mobile virtual network operators (MVNO) ecosystem

2 challenges for MVNOs in legacy network architectures

3 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

4 network slicing impact on MVNOs

5 conclusions
1 MVNO ecosystem

1 MNO

2
ra d i o s p e c t r u m

3
c o re n e t wo r k e l e m e nt s
e.g., HLR, GMSC, GGSN
4

re ta i l e l e m e nt s
5 e.g., billing, customer care
1 MVNO ecosystem

service
1 MNO provider

2
ra d i o s p e c t r u m

3
c o re n e t wo r k e l e m e nt s
e.g., HLR, GMSC, GGSN
4

re ta i l e l e m e nt s
5 e.g., billing, customer care
1 MVNO ecosystem

service thin
1 MNO provider MVNO

2
ra d i o s p e c t r u m

3
c o re n e t wo r k e l e m e nt s
e.g., HLR, GMSC, GGSN
4

re ta i l e l e m e nt s
5 e.g., billing, customer care
1 MVNO ecosystem

service thin full

1 MNO provider MVNO MVNO

2
ra d i o s p e c t r u m

3
c o re n e t wo r k e l e m e nt s
e.g., HLR, GMSC, GGSN
4

re ta i l e l e m e nt s
5 e.g., billing, customer care
1 MVNO ecosystem

Cyta is the only

full MVNO in Greece service thin full
1 MNO provider MVNO MVNO

2
ra d i o s p e c t r u m

3
c o re n e t wo r k e l e m e nt s
e.g., HLR, GMSC, GGSN
4

re ta i l e l e m e nt s
5 e.g., billing, customer care
1 MVNO ecosystem
M V N O m a r ke t s i z e i n c r e a s e s

4
Global MVNO market size, by region, 2012 - 2022 (USD Billion)
*https://www.gminsights.com
5
1 MVNO ecosystem
M V N O m a r ke t s i z e i n c r e a s e s

1 High variations of MVNO

subscriptions over time

4
Global MVNO market size, by region, 2012 - 2022 (USD Billion)
*https://www.gminsights.com
5

MVNO subscriptions (% of total)

1 MVNO ecosystem
M V N O m a r ke t s i z e i n c r e a s e s

1 High variations of MVNO

subscriptions over time

2 M a n y c a s u a l t i e s ! ! !
(end of business
within months from launch)

4
Global MVNO market size, by region, 2012 - 2022 (USD Billion)
*https://www.gminsights.com
5

MVNO subscriptions (% of total)

2 challenges for MVNOs in legacy network architectures

1
low profit margins
MNO for MVNO
Profit
2 margins

5
2 challenges for MVNOs in legacy network architectures

1
low profit margins
MNO for MVNO
Profit
2 margins

i n i t i a l co nt ra c t
5
with MNO
2 challenges for MVNOs in legacy network architectures

1
low profit margins
MNO for MVNO
Profit
2 margins

i n i t i a l co nt ra c t a b i l i t y to b e
with MNO s e r ve d b y
5
multiple MNOs
2 challenges for MVNOs in legacy network architectures

1
low profit margins
MNO for MVNO
Profit
2 margins

i n i t i a l co nt ra c t a b i l i t y to b e o p t i m i zat i o n o f
with MNO s e r ve d b y w h o l e s a l e / re ta i l
5
multiple MNOs p ro f i t s
2 challenges for MVNOs in legacy network architectures
initial contract with MNO

1 deep knowledge of the market and the

competition

5
2 challenges for MVNOs in legacy network architectures
initial contract with MNO

1 deep knowledge of the market and the

competition

2
realistic network/subscribers dimensioning

5
2 challenges for MVNOs in legacy network architectures
initial contract with MNO

1 deep knowledge of the market and the

competition

2
realistic network/subscribers dimensioning

negotiation of wholesale prices

4

5
2 challenges for MVNOs in legacy network architectures
initial contract with MNO

1 deep knowledge of the market and the

competition

2
realistic network/subscribers dimensioning

negotiation of wholesale prices

4

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

2 challenges for MVNOs in legacy network architectures
ability to be served by multiple MNOs

1 MNO #1
MNO #2
redundancy
2
MNO #3

3 flexibility

...
4
power to negotiate MVNO
wholesale prices
5 MNO #N
2 challenges for MVNOs in legacy network architectures
optimization of wholesale/retail profits

User MNO
1 profiles wholesale prices
MNO #1

2 Really hard
with legacy
technology
3 MNO #2

4
MNO #3

MNO #N
3 network slicing: a 5G key element

5
3 network slicing: a 5G key element
Access Core
E2E Optimization Services/Applications
Network Network
1

5
3 network slicing: a 5G key element
Access Core
E2E Optimization Services/Applications
Network Network
1
UE based slicing (e.g., VIP users)
Enhance the network slicing Service based slicing (e.g., video stream, smart home)
2 concept Inter-slice resource allocation

5
3 network slicing: a 5G key element
Access Core
E2E Optimization Services/Applications
Network Network
1
UE based slicing (e.g., VIP users)
Enhance the network slicing Service based slicing (e.g., video stream, smart home)
2 concept Inter-slice resource allocation

Inter-slice resource allocation

MME
SGW- PGW- Core Slice#1
Control Control
3 UE SGW-Data PGW-Data

MME+SGW-Control
PGW- Core Slice#2
UE Control
UE Service
4
UE Service RRH SGW/PGW-Data

Core Slice#3
SGW- PGW-
MME
Control Control
5
RAN slicing Core slicing *Mobile-cord project
4 network slicing impact on MVNOs
optimization of wholesale/retail profits
C o re n e t wo r k
i n a b ox
1
core network evolution

network functions virtualization

3

4 all IP networks

5
4 network slicing impact on MVNOs
optimization of wholesale/retail profits l e ga c y n e t wo r ks a re
m o n o l i t h i c i n te r m s o f
1 Q o S d i ffe re nt i at i o n

3 Core
netwo QoS
rk
4

l e ga c y n e t wo r k
4 network slicing impact on MVNOs
optimization of wholesale/retail profits n e t wo r k s l i c i n g
enables a fully
d y n a m i c way o f
1
QoS
n e t wo r k re s o u rc e
a l l o c at i o n
2 QoS

QoS
3
Core QoS

4 QoS

QoS
5
QoS
N e t wo r k s l i c i n g
4 network slicing impact on MVNOs
optimization of wholesale/retail profits N e t wo r k s l i c i n g
a n d N F V a re t h e
user profiles services/apps network selection
1
e n a b l e rs fo r a
modular dynamic
n e t wo r k
QoS
2
QoS

3 QoS

Core QoS

4 QoS

QoS
5
QoS

m u l t i - o p e rato r n e t wo r k s l i c i n g
5 conclusions

5 G te c h n o l o g i e s w i l l :
1

i m p ro ve u s e r Q o S ex p e r i e n c e
2

h e l p te l co s to m ax i m i ze re ve n u e
3

4 b o o st t h e c re at i o n o f n e w b u s i n e s s m o d e l s

5 A t h a n a s i o s L i o u m p a s , P h . D.
Cyta Hellas, R&D department

athanasios.lioumpas@hq.cyta.gr