Saturday, February 4, 2023
Home5G knowledgeOpen RAN should be a part of every operators business strategy

Open RAN should be a part of every operators business strategy

Although 2020 has brought numerous challenges to the telecom industry, including geopolitical stresses, the COVID-19 pandemic, and 5G deployment challenges, these events have also highlighted the critical role of fixed and mobile telecom networks in providing economic resilience and national vitality during a period of unprecedented disruption.

Several market developments are proving that the telecommunication domain is ready for change and for innovation and Open Ran will prove to be a cost effective and innovative solution enabler and accelerator for all operators ensuring that there is more vendor choice

Check below our last article related to Open Ran the technology to address operator issues

The objective of this technology is to open interfaces within the mobile network and allow a transition from a limited number of verticalized vendors promoting proprietary “end-to-end” solutions to an open market of “best-of-breed” system designs offered by numerous vendors. This has already allowed the entry of new vendors in the relatively closed mobile infrastructure supply chain with companies like Altiostar, Mavenir, and Parallel Wireless creating new types of equipment.

Open RAN commercialization

Open RAN commercialization and adoption will facilitate 5G network deployments at massive scale. The need for operators to deploy new equipment facilitates the introduction of Open RAN at this moment in time. Several operators have been issuing for Proposals (RFPs) for Open RAN with Dish and Rakuten leading these deployments with their new 4G and 5G networks solely in this new domain.

Those current large-scale deployments by Rakuten and Dish are illustrating that Open RAN is not only applicable in niche use cases, but also in mass-market mobile networks targeting the consumer market.

Finally, many skeptics will argue that Open RAN needs new standards, but this is not the case; Open RAN is, in fact, a collaborative multi-vendor approach to building a network that complies to The 3rd Generation Partnership Project (3GPP) standards.

Open RAN will definitely become a disruptive trend that will move the telco infrastructure market from a static, vertical market and today several operators including Telefonica, Vodafone, AT&T, Verizon, Deutsche Telekom and Rakuten are incorporating Open RAN into their business strategy. This is to unbundle the components and software inside the RAN, with a view to make it cheaper and more flexible for 5G deployments across both macro and metro layers.

Rakuten expects to cut 40% CAPEX and 30% OPEX with its 4G & 5G Open RAN networks, while building an innovative and continuously evolving multi-vendor RAN ecosystem with new business models and revenue streams.

Open RAN should be a part of every operators business evaluation strategy  and the incumbent vendors should direct and advise in accordance to the standards available.

Open RAN Projects

Attached an updated list of Open RAN Projects across the globe

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