Network Slicing, which is a feature that requires T-Mobile‘s Standalone (SA) 5G network, can allow the carrier to offer part of its 5G network to a specific customer and meet that customer’s needs while still serving its other subscribers. For example, a 5G network slice can be created for self-driving cars to make sure that the slice delivers reliable 5G connectivity allowing these vehicles to operate safely.
Sievert says that network slicing will generate revenue as T-Mobile business customers pay for the technology. At the same time, T-Mobile could see a hike in market share as more smartphone users switch to the carrier thanks to its newer features. The carrier first used network slicing for its T-Priority service for first responders.
“We waited a long time before starting to talk about all this stuff, because we wanted to see a real business model develop around it,” Sievert explained. “But the moment’s kind of arriving, and T-Priority’s certainly an expression of it.”-Mike Sievert, CEO T-Mobile
“AI growth and AI workloads are going to be a way for us to increasingly showcase that [network] differentiation, especially as AI begins to make the leap from textual interfaces to much more video, audio, imagery. It’s early days, but I think this is a nice tailwind for our business, because it’s going to be important that we’re able to showcase these advantages.”-Mike Sievert, CEO, T-Mobile
Also in the mix as a possible revenue producer for T-Mobile is AI. While Sievert didn’t say whether T-Mobile is seeing additional demand put on its network because of traffic generated by AI services, the executive did say that AI does represent a opportunity for T-Mobile to show off its 5G network.
T-Mobile continues to outpace its rivals when it comes to its quarterly numbers. Analysts at MoffettNathanson agreed and said, “To be sure, T-Mobile is still running circles around its competitors.”
