Explainer: Why 5G network slicing is back in the spotlight

What exactly is network slicing?

Network slicing is a feature of standalone 5G that enables telecom operators to create multiple virtual networks, or slices, on the same physical infrastructure. Each slice can be configured to deliver different levels of speed, latency, reliability, or security depending on the application. Think of it as creating dedicated lanes on the same highway.

A factory operating automated machines, a hospital performing remote surgery, and an ordinary smartphone user can all use the same 5G network, but each can be assigned a separate virtual lane with performance tailored to their needs. The capability is part of global 5G standards and is already supported by operators that have deployed standalone 5G networks.

How is it a policy issue now?

The trigger was Airtel’s launch of a priority network experience for eligible postpaid subscribers. Although the service does not charge customers separately for network slicing, it promises a better network experience during periods of congestion. That has raised questions over whether offering differentiated quality of service to one set of users is consistent with net neutrality framework, which requires Internet traffic to be treated equally.

The debate, therefore, is not about whether network slicing is technically permissible. It is about whether its commercial use for retail consumers fits within the existing regulatory framework or requires fresh policy clarity.

Why are telcos looking at consumer use?

When operators invested heavily in 5G spectrum and infrastructure, they expected enterprise services to become a key source of new revenue. Manufacturing, logistics, ports, mining, healthcare, and utilities were seen as sectors that would pay for guaranteed network performance via capabilities like network slicing.

That has yet to materialise. Telecom firms themselves have acknowledged that 5G monetisation hasn’t happened. Against this backdrop, operators have started exploring consumer offerings built on the same technology to improve customer experience and strengthen subscriber loyalty. Airtel’s priority service is widely seen as one such attempt.

Is Airtel monetising network slicing?

Not directly. Airtel is not charging customers separately for access to a network slice. Instead, the capability is bundled with select postpaid plans. The objective appears to be to make premium postpaid plans more attractive, encourage high-value prepaid users to migrate to postpaid, reduce churn, and improve average revenue per user (Arpu). In effect, Airtel is using network slicing to differentiate its premium plans rather than selling it as a standalone service.

What are regulators likely to examine?

The central question is whether differentiated connectivity amounts to discrimination under India’s net neutrality framework. One view is that network slicing is a standard 5G capability and does not violate net neutrality as long as it remains application-agnostic and does not favour or block specific websites, apps, or content providers.

The opposing concern is whether offering priority connectivity to customers on premium plans effectively creates a two-tier Internet, even if no individual application is being treated differently. The challenge for regulator or DoT is to distinguish between specialised services enabled by 5G and public Internet access that remains subject to net neutrality rules.

What could happen next?

The government’s review may focus on whether existing rules require clarification rather than whether network slicing itself should be permitted. One option could be to define specialised services more clearly while putting in place safeguards to ensure that ordinary users do not experience a deterioration in service quality.

Another could be to prescribe transparency requirements for operators offering differentiated services. For telecom operators, the outcome could shape how future 5G services are commercialised. For consumers, it could determine whether premium connectivity becomes another feature of mobile plans or whether a uniform Internet experience for all users continues.

So, what’s the debate about?

Ultimately, the debate is as much about business models as it is about technology or regulation. Network slicing has been part of the 5G ecosystem from the outset. The bigger question is whether it can finally help telecom operators generate meaningful returns on their 5G investments without weakening the principles of an open Internet. The answer will shape not just how operators price and package future 5G services, but also how the regulator balances innovation with consumer choice and an open, non-discriminatory Internet.