Open radio access network (Open RAN) is a revolutionary approach to building mobile networks. Unlike traditional systems where network components are tightly integrated and come from a single vendor, ORAN enables a more open and interoperable environment. Its gear has been implemented successfully and is running live traffic in a few commercial networks (mostly in greenfield environments) in various parts of the world. Several Tier I operators have launched commercial deployments, consolidating partnerships with the remaining vendors in the ecosystem.
With the recent roll-outs, India’s 5G market also presents a significant opportunity for Open RAN vendors to deploy the technology at scale. Its principles provide the cornerstone for a fluid evolution to the next G, delivering greater flexibility for mobile network operators and subscribers alike. The move towards ORAN architecture is driven by the numerous benefits it offers to telecom service providers.
Recently, the Centre for Development of Telematics’ (C-DOT) Open RAN test bed project for conformance, certification and interoperability testing of Open RAN-based solutions was launched. The test bed, developed by C-DOT, aims at helping innovators, start-ups, micro, small and medium enterprises (MSMEs) and other stakeholders to test ORAN technology. As per the government, this initiative will facilitate stakeholders involved in the technology’s research and development by extending testing facilities for the proliferation of the Open RAN ecosystem in India.
Indian telcos are also optimistic about these developments, with Reliance Jio working on testing its own 5G Open RAN solutions, and Airtel collaborating with Mavenir for 5G Open RAN deployment in rural areas.
Key advantages
Open RAN offers cost savings in terms of network deployment and operational expenses. By allowing operators to use equipment from multiple vendors, it fosters competition, potentially reducing prices and making the overall network infrastructure more cost-efficient. Its emphasis on interoperability enables network operators to mix and match components from different vendors. This promotes vendor diversification, reducing dependence on a single supplier and creating a more flexible and competitive market environment.
The modular and open nature of Open RANfacilitates quicker adoption of new technologies. This promotes innovation as vendors can introduce updates and improvements independently, enabling faster integration of advanced features and technologies within the network.
Open RAN architecture allows for easier scalability, making it adaptable to varying network demands. This flexibility is crucial for accommodating the evolving requirements of 5G networks and beyond, contributing to the long-term growth of the market. It can play a pivotal role in extending mobile network coverage to underserved and remote areas. Its cost-effective and adaptable approach makes it an attractive solution for addressing global connectivity challenges and bridging the digital divide, contributing to market growth.
Open RAN will also be a critical part of 5G. For instance, private 5G networks and Open RAN are technology enablers that open a new host of possibilities for businesses. Open RAN deployment in private networks promises to make private cellular networks more easily deployable and manageable due to open reference designs that are similar to those used in enterprise Wi-Fi.
Regional trends
Globally, North America holds a market share of 45 per cent in the Open RAN space in 2023 due to several factors. The region has witnessed extensive 5G deployments, driving the demand for flexible and innovative network solutions like Open RAN. Additionally, regulatory support, strong investments in telecommunications infrastructure and a robust ecosystem of technology providers contribute to North America’s dominance. The market’s growth is further propelled by a strategic focus on enhancing network efficiency, reducing costs and fostering technological advancements, making North America a key player in the Open RAN landscape.
Meanwhile, Europe is experiencing notable growth in the Open RAN market due to a convergence of factors. The region’s focus on fostering a diverse and competitive telecommunications landscape, along with initiatives to enhance network efficiency and reduce dependency on traditional vendors, has accelerated Open RAN’s adoption. Furthermore, regulatory support for open and interoperable network architectures aligns with the objectives of Open RAN, contributing to its widespread acceptance. This growth trend reflects Europe’s commitment to technological innovation, cost-effectiveness and building resilient, future-ready telecommunications infrastructure.
Further, the Asia-Pacific region is poised for rapid growth in the Open RAN market due to the increasing demand for cost-effective and flexible network solutions. As the region aggressively adopts 5G technology, Open RAN’s modular and interoperable approach can cater to diverse market needs. Governments and telecom operators in Asia-Pacific are keen on leveraging the technology to address connectivity challenges, enhance network efficiency and promote vendor diversification. This surge in interest and investment positions the region as a key driver for the expansion and adoption of Open RAN technologies.
New release for Open RAN development
Recently, European carriers such as Deutsche Telekom, Orange, Telefonica, TIM and the Vodafone Group have released an update on the technical priorities of Open RAN. The update is the result of the work carried out by these European carriers under the previous MoU signed on Open RAN.
Open RAN Technical Priorities Release 4 is an update of the previous releases published in June 2021, March 2022 and April 2023. Each release had prioritised different aspects of Open RAN development. While Release 1 focused on the main scenarios and technical requirements for each of the building blocks of a multi vendor RAN, Release 2 mainly focused on intelligence, orchestration, transport and cloud infrastructure, addressing the energy efficiency goals and targets to support sustainable Open RAN. Meanwhile, Release 3 primarily focused on developing requirements on service management and orchestration (SMO) and RAN intelligent controller building blocks, as well as enhancing other areas such as cloud infrastructure to support more secure Open RAN.
The European telcos noted that the fourth release of the technical priorities primarily focuses on developing further requirements on SMO, especially related to the artificial intelligence/machine learning framework, interworking with traditional RAN and slicing management. Moreover, this new release focuses in detail on RAN hardware acceleration and various challenges related to both the look-aside and in-line acceleration card models.
As per the telcos, the overall objective is to promote fast-paced development of competitive Open RAN solutions in Europe and across other regions, and ultimately accelerate the global adoption of the technology.
Future trends
Overall, the Open RAN domain has been witnessing significant developments. However, a lot still needs to be done in terms of feature parity, performance parity and implementation cost parity with traditional RAN before Open RAN can truly replace or augment traditional RAN. So far, Open RAN deployments have been primarily limited to greenfield networks, such as DISH Network and Rakuten Mobile, where the technology is easier to roll out.
However, despite prevailing market challenges in the near term, the long-term forecast for the Open RAN domain remains optimistic, with projections indicating that it will constitute 20-30 per cent of worldwide RAN revenues by 2028, a significant increase from the 7-10 per cent projected for 2024.
