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Network slicing no silver bullet to drive 5G monetisation in India

Network slicing is often touted as a quintessential 5G killer app for delivering a host of top-end, service-level agreement (SLA)-backed customised services to premium customers and enterprises, which, in turn, can turbo charge telco ARPUs. But can big-bang rollouts of premium 5G services using network slicing technology really prise open new revenue streams and drive genuine 5G monetisation in India?

Seems unlikely, anytime soon. If anything, deploying such specialised 5G services could be a tough call in India where data rates remain low and the country is home to a billion-plus mobile users who are amongst the world’s biggest data guzzlers. India’s comparatively low network density vs the likes of China and its paucity of sub-GHz spectrum resources further complicates matters.

Under such circumstances, delivering premium 5G services for enterprises or around gaming, Internet of Things (IoT) and other mission-critical solutions via network slicing to boost telco ARPUs won’t be a cakewalk.

This is since 5G internet services are delivered through a shared pipe. And slicing this shared 5G infrastructure pipe into multiple virtual networks (read: virtual pipes) to deliver differentiated services — promising faster speeds, lower latency and higher levels of security/reliability — could potentially compromise 5G capacity, strain the mother network and spoil the internet experience of ordinary mobile users. Experts have warned such a scenario could run afoul of India’s net neutrality rules and throw up regulatory hurdles.

The net neutrality principle suggests that specialised 5G services delivered via network slicing must not replace general internet services or cause congestion that degrades the overall quality of internet access services in India. Accordingly, any direct-to-customer premium 5G services that undermine the mainline 5G internet experience of general users could get flagged off as a violation of net neutrality norms.

Premium 5G services via network slicing are primarily consumed indoors – either in offices or homes. At present, these are seeing some traction in global markets that have an abundance of sub-GHz 5G spectrum, adequate mid-band holdings (3.5 GHz), large-scale small cell deployments and strong public WiFi networks. Sub-GHz spectrum in the 600 MHz, 700 MHz, 800 MHz and 900 MHz bands are particularly good for strong indoor coverage, and accordingly, well suited for network slicing applications.

But this is not the case in India where 5G network capacity is finite and sub-GHz spectrum holdings remain thin. Worse, inadequate mid-band airwave holdings (read: 3.5 GHz) and low penetration of small cells makes the challenge even bigger for 5G operators to come up with alternate solutions to deliver unhindered indoor broadband coverage — essential for premium network slicing applications.

To be sure, telcos that have rolled out 5G networks based on standalone (SA) architecture want to offer specialised 5G offerings riding on network slicing technology. If done, the quality of services for non-prioritised customers could suffer. India’s top telcos seem keen to launch such premium differentiated 5G services to boost monetisation. TRAI will need to examine whether the ask of the telcos flouts the net neutrality rules and DoT too will need to examine if license amendments they proposed in 2018, are being flouted or not.

Additionally, suitable steps will also be required to arm telcos with larger chunks of sub-GHz spectrum at affordable rates in future auctions and public WiFi too needs a makeover to enable WiFi offloads.

Telcos, on their part, need to densify mid-band spectrum coverage with widespread small cell deployments, which is critical for robust indoor broadband penetration and delivering 5G sliced applications, whilst ensuring the internet experience of ordinary mobile users is not discriminated against in any way.

(DISCLAIMER: Views expressed are the author’s personal)

  • Published On May 23, 2026 at 04:20 PM IST

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