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

Publisher IDC
Published Nov 14, 2024
Length 10 Pages
SKU # IDC19325019

Description

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

Table of Contents

10 Pages

Executive Snapshot

New Market Developments and Dynamics

The Benefits of 5G Slicing

Slice Pricing Model: Combining Charging for Scarce Resources with Value for Customers

Scarcity of Network Resources, Network Load and Congestion

Planned vs. Unplanned Slice Establishment

Specific Requirements of the Slice

Advice for the Services Provider

Adopt a Value-Based Pricing Approach

Differentiate Pricing Based on Buyer Personas

Implement a Flexible, Tiered Pricing Model

Utilize Dynamic and Adaptive Pricing Mechanisms

Iterate and Optimize Pricing Based on Real-World Use Cases

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Related Research

Synopsis

Pricing

Currency Rates
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