Verizon is venturing into network slicing for consumers with a novel approach, providing it free of charge. The company introduced Enhanced Video Calling, improving video call quality on platforms like Facetime, WhatsApp, and Zoom. This feature is currently accessible only to iPhone users—specifically iPhone 14 or newer—who have subscribed to Unlimited Ultimate or Business Unlimited Pro 5G plans. Importantly, it operates exclusively in 5G Ultra Wideband areas, offered without additional fees to eligible subscribers.
The decision not to charge for Enhanced Video Calling is intriguing. Traditionally, network slicing is anticipated as a revenue source with a focus on enterprises, demanding reliable connectivity for critical applications and ready to pay for such advantages. However, the consumer market presents its unique opportunities. Verizon’s free offering aims to provide better video calls in congested networks, a use case reflecting its commitment to quality.
Meanwhile, Deutsche Telekom has launched a 5G+ Gaming tariff, also leveraging network slicing for improved gaming experience, notably free through its loyalty program. Initially, it was exclusive to the Samsung Galaxy S24 Ultra, but plans for wider accessibility are in motion.
Both Verizon and Deutsche Telekom are exploring potential revenue streams from network slicing. However, the competitive market landscape influences decisions on offering these services for free versus charging fees.
Importantly, Verizon is consciously using the term ‘network slicing’ in consumer communications. This move suggests a strategy to highlight its advanced network capabilities, possibly as a way to differentiate beyond traditional offers like phone selections or additional services.
Whether as a giveaway or a paid feature in the future, network slicing could play a significant role in 5G monetization strategies, serving as a customer acquisition or retention tool. However, given the extensive investments Verizon has made in spectrum and network deployment, any immediate financial returns are questionable.
