Open RAN has emerged as a promising alternative to legacy RAN architecture and is expected to reshape the mobile network ecosystem, especially in the 5G era. Opening up the RAN through emerging 5G networks offers benefits for virtualisation and automation, and enables cost savings and interoperability. It plays a key role by offering more diversity as it enables the entry of multiple equipment vendors into the ecosystem, thus giving telcos flexibility and the opportunity to avoid vendor lock-in while also stimulating competitiveness and spurring innovation. Further, the total cost of ownership of traditional RAN contributes to 65-70 per cent of the operator’s total cost. However, industry estimates reveal that the deployment of open RAN frameworks can drive down the operator’s capital expenditure by a significant 40-50 per cent and operational expenditure by 30-40 per cent.
Paving the way for 5G roll-out
Although open RAN is compatible with all networks from 2G to 5G, it is a necessity for 5G as the technology demands a fundamentally different approach to network architecture. The associated network topology and requirements such as throughput, latency and simultaneous connections will vary for each use case. To this end, open RAN allows operators to combine components from a diversified supply chain to effectively cater to multiple use cases. Open RAN that connects to 5G standalone (SA) is ideal for new applications as it offers maximum reliability and improved latency as well as allows a larger number of people and devices to connect to mobile data at the same time.
An increasing number of MNOs are likely to transition to 5G SA in 2022, with several 5G use cases starting to become mainstream. According to a study by the Global Mobile Suppliers Association (GSA), 97 MNOs were investing in 5G SA as of November 2021. These include those that are evaluating, testing, piloting, planning, and deploying, and those that have already launched 5G SA networks. GSA also identified 20 MNOs that have deployed or launched 5G SA in public networks.
The digital transformation brought about by the 5G technology makes it essential to reassess processes and workflows to incorporate different ways of network management and align them with industry standards. Using open, non-proprietary RAN architectures will represent a new means for the mobile industry and foster the 5G movement, which is currently stalled by incumbent technology.
Industry adoption trends
The adoption of 5G open RAN interfaces and architectures is relatively easier for greenfield service providers. In contrast, brownfield operators, who have already widely deployed 4G, face several challenges such as lack of interoperability available while using traditional RAN interfaces. Nonetheless, operators across the world are trialling and deploying open RAN, with an upward trend expected in brownfield deployments in the coming years.
According to a report by the Dell’Oro Group, the global cumulative open RAN revenues are forecast to approach $20 billion and account for nearly 15 per cent of the total 2G-5G RAN market by 2026. Market reports suggest that Asia Pacific is expected to dominate the market with approximately 35 per cent share and the open RAN market in the region will reach $11.5 billion by 2030, growing at a compound annual growth rate of 34 per cent. Initially, Japan will drive the market in the region before China emerges as a leader by 2030. Meanwhile, North America and Europe will register a growth rate of over 45 per cent, although their share will be around 31 per cent and 26 per cent, respectively, in 2030.
Growing traction in India
While still at a nascent stage, open RAN is gaining considerable momentum in India with telcos eyeing it as a viable method to cut network-related costs and customise it as they upgrade their networks to 5G.
Some notable developments underway are: Bharti Airtel conducted India’s first open RAN-based live 5G network validation in partnership with Mavenir in April 2022. In November 2021, Airtel partnered with the vendor for open-RAN based 5G field trials in the mmWave and mid-bands at Chandigarh tri-city. The recent 5G validation was conducted over the 3500 MHz band test spectrum allotted to the telco by DoT with the equipment deployed and configured in non-standalone (NSA) mode, using commercially available 5G devices. Further, the telecom service provider partnered with Intel in July 2021 for 5G network development by leveraging virtualised RAN and open RAN technologies. The operator also announced a strategic partnership with the Tata Group in June 2021 to build 5G networks based on open RAN technology and roll out products and solutions for India, and eventually, for the rest of the world.
Meanwhile, Reliance Jio announced that its parent company, Jio Platforms, had partnered with US-based Qualcomm in June 2021 for local manufacturing of critical equipment to catalyse the 5G ecosystem in India. The companies have previously partnered to develop open interface compliant architecture-based 5G solutions with a virtualised RAN and had achieved speeds of over 1 Gbps on the Jio 5G new radio (NR) solution, using the chipmaker’s 5G RAN platforms. The telco also collaborated with the Netherlands-based NXP in the same month to implement a 5G NR open RAN small cell solution. As per the chipmaker, the combined solution would deliver high performance and enable a range of 5G use cases.
Besides the telcos, other stakeholders are betting big on open RAN. For instance, the Centre for Development of Telematics (C-DOT), WiSig Networks Private Limited and VVDN Technologies Private Limited signed an agreement in June 2022 for collaboration in the area of open RAN-based radio network for 5G solution. In a separate move, VVDN Technologies announced the introduction of a new end-to-end 5G testing lab for 5G open RAN-based radio unit (RU) devices in India. Further, Sterlite Technologies Limited collaborated with Analog Devices in February 2022 to develop 5G open RAN RUs. Meanwhile, Himachal Futuristic Communications Limited (HFCL) recently joined the O-RAN Alliance. As a member of the Alliance, HFCL would focus on contributing to standards that ensure a truly open and multi-vendor RAN network. Further, HCL technologies launched a 5G open RAN lab in India in September 2021 to enable global telecom industry players to transition to 5G.
However, early 5G contracts made by telcos in India immediately after the 5G spectrum auction have heavily favoured classic RAN vendors such as Ericsson and Nokia. For instance, Airtel stuck with its 4G vendors, Ericsson and Nokia, while choosing Samsung as the third supplier, despite the telco previously signalling an interest for open RAN in 5G. Meanwhile, Jio and Vodafone Idea Limited have not yet announced their 5G vendors but will reportedly partner with key leading open RAN vendors.
Challenges and outlook
Fundamentally, open RAN is a massive step forward. However, an enlarged ecosystem reliant on infrastructure disaggregation poses several complexities that need to be addressed. An important challenge for operators would be to ensure interoperability, manageability, optimisation and end-to-end performance in a multi-vendor environment. The combination of a broad range of solutions from multiple vendors increases the probability of incompatibilities and the need for accountability. Huge complexities of system integration will be even more challenging for brownfield operators as they will need to consider legacy technologies present in the network. There is a possibility of incompatible configurations due to multiple possible combinations of hardware and software. Moreover, open RAN architectures have mainly been tested in regional and less densified areas. This raises concerns about whether these solutions can meet the requirements of large-scale deployments. Besides, troubleshooting will likely become difficult as operators will require vendor-independent validation and troubleshooting to resolve performance issues, which is not the case in traditional RAN. Additionally, highly trained technical teams will be required to move from hardware to a software-centric and virtualised environment. As per a survey by GSMA, uncertain internal ownership, lack of internal expertise, limited ecosystem and integration issues are some of the most pressing concerns among operators globally.
Nonetheless, efforts have been undertaken in the industry to address these concerns. Open RAN revenues since early 2020 have outpaced expectations, bolstering its credibility in the telecom sector. According to a report by Deloitte, the open RAN market is expected to grow and overtake traditional RAN solutions in both public and enterprise networks over the next decade. The key to unlocking the power of 5G networks is to invest in open networks that lay the foundation for the introduction of new business models. Technological advancements, spectrum availability and cooperation in fostering rapid innovation together will encourage investment and ensure healthy returns.
