Cracking the Code: How to Build Profitable and Flexible 5G Network Slice Pricing Models

Cracking the Code: How to Build Profitable and Flexible 5G Network Slice Pricing Models

Finding an effective pricing model for 5G network slicing is challenging due to its novelty and complexity. Operators must account for customization in each slice, such as latency, reliability, and resource allocation. Customers often struggle to understand its value, complicating adoption. Pricing models must be flexible and take into account resource scarcity, planned vs. on-demand slices, and specific technical requirements such as bandwidth and latency. Dynamic and tiered pricing structures are essential to accommodate different use cases and industries."Pricing strategies for 5G slices are challenging, as we are talking about a service that is completely new to the market; therefore, pricing must reflect both technical and commercial dynamics and must adapt to resource scarcity and customer value. If slicing is priced effectively and the user and payer remains at the center of the model, it can unleash a full new generation of long-tail services that have traditionally been very difficult for telcos to address." — Associate Vice President Alejandro Cadenas, 5G Monetization and Adoption, IDC Europe