Network slicing is a key enabler for providing new services to industry verticals. In order to enable network slice provisioning, it is important to study the network slice type allocation for different device types in a real industrial case. Furthermore, the costs of the required virtualization infrastructure need to be analyzed for various cloud deployment scenarios. In this paper, a cost model for the virtualization infrastructure needed for network slice provisioning is developed and subsequently applied to a real smart factory. In the model, slice types and devices are mapped such that each factory device is provisioned with one or more slice types, as required. The number of devices to be supported per slice type is forecasted for 2021–2030, and the total costs of ownership, costs per slice type, and costs for every slice type, for each device are calculated. The results are analyzed for three cloud deployment scenarios: local, distributed, and centralized. The centralized scenario was found to have the lowest cost. Moreover, sensitivity analysis is conducted by varying the device growth, the number of factories, the level of isolation between network slices, and resource overbooking. The resulting evaluation and cost breakdown can help stakeholders select a suitable deployment scenario, gauge their investments, and exercise suitable pricing.

Purpose: The purpose of this paper is to build possible future scenarios for indoor connectivity in a venue such as a university campus and build alternative value network configurations (VNCs) defining different local network deployment options, focused on the Finnish telecom market. Design/methodology/approach: In this paper, Schoemaker’s scenario planning method (Schoemaker, 1995) is used to construct future scenarios and the VNC method of Casey et al. (2010) is used to build alternative VNCs. The paper studies the Aalto University campus network for current end-user data usage demand and the existing technology used in meeting the end-user needs and forecasts the demand for the next five years to understand the need for 5G. Findings: This research concludes that with the provision of local spectrum licenses, there is an opportunity for venue owners to take the role of 5G local operator on the venue premises. Furthermore, it enables venue owners to collaborate with the incumbent mobile network operators (MNOs) in a neutral host model and provide venue-specific connectivity services. Research limitations/implications: A detailed economic assessment for the network deployment in the campus is considered for future study. Originality/value: Considering the provision for local spectrum licenses, this paper has taken a unique attempt in identifying the future scenarios for local 5G network operations. It provides a strategic direction for the venue owners in adopting 5G technology and whether to make 5G or buy 5G from MNOs.

In addition to the high degree of flexibility and customization required by different vertical sectors, 5G calls for a network architecture that ensures ultra-responsive and ultra-reliable communication links. The novel concept called micro-operator (uO) enables a versatile set of stakeholders to operate local 5G networks within their premises with a guaranteed quality and reliability to complement mobile network operators' (MNOs) offerings. In this paper, we propose a descriptive architecture for emerging 5G uOs which provides user specific and location specific services in a spatially confined environment. The architecture is discussed in terms of network functions and the operational units which entail the core and radio access networks in a smart factory environment which supports industry 4.0 standards. Moreover, in order to realize the conceptual design, we provide simulation results for the latency measurements of the proposed uO architecture with respect to an augmented reality use case in industrial internet. Thereby we discuss the benefits of having uO driven local 5G networks for specialized user requirements, rather than continuing with the conventional approach where only MNOs can deploy cellular networks.