Telstra 5G Bandwidth Slicing was announced in February 2024 as a proof-of-concept. It creates multiple virtual networks with different performance characteristics on the same physical 5G network.
To be clear, bandwidth slicing means dividing the available bandwidth into separate pipes within the same overall bandwidth. Imagine you have a 100mm water pipe. Telstra 5G Bandwidth slicing is akin to running 4 x 25mm pipes (or any combination to 100mm) inside that—no more added capacity, just different levels of use and congestion in each pipe.
To take that further, imagine that Telstra retail mobile users get one pipe to themselves (less congested), another for government/military (secure), another for enterprise (guaranteed bandwidth), and finally one for all those Telstra wholesale MVNO customers (really congested).
We are not suggesting that Telstra is doing anything wrong, but the bottom line is that its Wholesale MVNO customers receive slower capped speeds and suffer from more congestion. Ever tried to make a phone call at a Swifty concert?
5G bandwidth slicing means not all 5G is equal. It saves Telstra money by not having to invest in more bandwidth at the expense of its consumer customers who use its MVNOs.
Telstra is not alone
Optus is starting to use bandwidth slicing and will roll it out nationally soon. It has about the same bandwidth to share with fewer customers. Even with Vodafone using its 4/5G service, it still has lower contention rates.
While they all tout the advantages, they omit to tell you that it is all about monetisation – dedicated bandwidth if you are prepared to pay for it. The rest of us get the dregs.
Good for shareholders – lousy for us!
Current issues
Optus says network slicing is manual until upgrades to the legacy network elements allow for the future state of zero-touch automated slicing. Initially, the market will have a few slices catering to generic use cases, until advanced, bespoke, and automated slicing is a reality. We are nowhere near that yet!
Why did things slow down after 3G was retired?
Most of the voice traffic went via 3G, and data by 4G. Rip out 3G, and you lose both coverage and bandwidth, which will be refarmed to sub-6GHz ‘low band’.
Low Band is not 5G by any stretch of the imagination. It allows inter-band, non-contiguous spectrum sharing (ESS), and sub6-CA. It simply lets Telstra et al. claim longer 5G transmission distances but neglects to tell you that it is a low 3G speed. Now, 4G Band 28 has become the substitute for 3G, and it’s massively congested.
CyberShack’s View: Telstra 5G Bandwidth Slicing is bad for consumers, and 5G in Australia is a sham
Our 5G comprises sub-6GHz, Non-Stand-Alone antennas bolted onto the 4G network (making economic sense). It does not offer the 20Gbps download speeds that Telstra initially crowed about. It is lucky to get 2Gbps, and only 10% of that if using an MVNO. Nor does this sub6-CA magic offer ‘5G data sessions over distances exceeding 80km’.
Throw bandwidth slicing on top of that, and consumers are not the winners.
There is not a lot you can do as a consumer. If MVNO speeds are fine for you, then save money while you can. Telstra forces you to be a direct retail customer if you need higher speeds.
Some countries are looking to prevent bandwidth slicing by opening up more bandwidth. For example, Germany is looking at dedicated bandwidth for connected cars—no such luck here with the Government wringing every last cent out of its Telcos.
Wally Swain, senior vice president with analyst firm 451 Research, during the 2018 Brooklyn 5G Summit.
“Network slicing is a way to expand the earning capability of a fixed slice of spectrum. Is it something that regulators should be looking at, and saying, ‘This is my way to increase competition in a market, by forcing slices to be on a wholesale tariff?’ — or that kind of thing.”
8 comments
Wow
Ray knows the details. Time to set up Rayco Telco and give us a better service. Raystra Raydafone won’t Rayptus on price ‘n’ speed. Else we get Rayoost or Rayamaysim. Raybara! Strewth!
Ray Shaw
You should be a comedian, and it would be hilarious if the matter were not so serious.
Dave
So why does the customer still get charged for full services when telcos can not deliver especially in rural areas ?
Put this another way, if you are paying someone to wash your car and it was only half washed do you still pay full price ?
Ray Shaw
Dave, I feel your pain. It really shows how little regard they have for customers and how money hungry they are. They are not breaking the law but seriously bending it.
Terry Toomey
Live in the ACT where 3g network was our savior.
Most times 4g would not be available and we would be covered by 3g. Since 3g closure we seem to have 2 to 3 bars on 4g.
Ray Shaw
Hi Terry – Telstra/Optus/Voda will tell you (in not-so-many words) that you have no issues in your area because its transmission is not throttled. Try to use Wi-Fi calling when at home, as that will give you a better experience over Wi-Fi/Internet.
Nigel Fletcher
Disappointing big Telco’s & Corporate’s are allowed to continue to act like this – money money money. Having worked all my life in big corporate companies you are consistently informed by them ‘customer first’ when we all know it’s company/shareholders first
Ray Shaw
Thanks for the feedback. There is not an ounce of consumer customer focus at Telstra (or Optus). It’s all lip service.