04 September 2023
Kelvin Chaffer, CEO of Lifecycle Software
Open Radio Access Network - ORAN or Open Ran - is becoming known as a unique ecosystem that provides a diverse choice of RAN vendors for mobile network providers. This innovative network system can potentially reduce the costs of implementing its infrastructure while also lowering the barrier to entry for new product innovation - a massive game-changer in the telecoms industry. Unsurprisingly, its adoption and popularity are growing - the Open RAN market is expected to surpass $32 billion by 2030 at a 42% growth rate.
With these new - and often overlooked - industry opportunities, how can vendors capitalise on this emerging network to harness previously untapped potential? First and foremost, vendors must understand what Open Ran is, its challenges and opportunities, and how it impacts other industry developments like 5G.
Open RAN is a network of disaggregated components connected via open interfaces and optimised by intelligent controllers, enabling numerous vendors to interact via defined interfaces.
Significant steps have been made toward adopting the Open RAN model as the market embraces its infrastructure. In 2022 the UK government released a set of ORAN Principles to encourage further innovation and collaboration within the industry. As Open RAN offers mobile operators increased flexibility to upgrade their networks and deploy new services, traditional RAN players will notice the pressure.
As the adoption of 5G applications continues to rise globally, communication service providers (CSPs) must expand their infrastructures to the Edge and create a wider ecosystem of RAN vendors to identify new and innovative revenue opportunities. New technologies such as Open RAN provide CSPs with a unique opportunity to have flexibility in deploying an open infrastructure, enabling growth for future technologies.
Harnessing Open RAN
Open RAN is an exciting and largely untapped playing field for many telcos, particularly those transitioning from static, vertical infrastructures into dynamic, horizontal ones. Open RAN is particularly appealing in emerging areas where Average Revenue Per User (ARPU) is low and operators need help generating a worthwhile return on investment. In some instances, Open RAN allows operators to integrate several generations of technology while enabling mobile network operators (MNOs) to avoid vendor lock-in and maximise their current network investments.
If harnessed properly, Open RAN can enable operators to reduce their reliance on a single vendor for the components of their wireless networks - giving them greater flexibility and the potential to reduce costs by not being tied to a single vendor's products and prices.
Open RAN also allows operators to incorporate new technologies and innovations into their networks with ease since Open RAN requires fewer hardware integrations. As Open RAN's use cases grow, CSPs can maximise this technology's openness and interoperability to create solutions compatible with a broad range of hardware and software platforms, nudging operators to reach a broader market - and potentially increasing their revenues.
Barriers to Open RAN
Amidst the abundant benefits and opportunities of Open RAN, its utilisation has yet to be accepted worldwide. While attractive to some organisations, its adoption requires heavy investments in new software, which could generate high upfront costs - a barrier for some smaller operators with limited resources. Operators may also need to train their staff to use and manage Open RAN technology, potentially adding to the cost and complexity of implementing new tech.
When ensuring high levels of connectivity for end users, deploying a vast and open network can be challenging to manage. There's always a possibility of compatibility issues between vendors' hardware and software. While Open RAN allows for multiple vendors and technologies within a single network, operators may need to strategically plan and manage their deployments to ensure seamless operations and avoid technical problems. This requires more expertise and coordination than traditional, single-vendor networks, which comes back to the issue of higher costs.
Implementing Open RAN technology may also introduce security concerns because it opens operators' networks up to a broader range of hardware and software components, each with vulnerabilities. As more and more telcos disconnect their legacy networks and deploy 5G at rapid speeds, security must be prioritised. With more solution providers choosing to host their 5G networks on the public cloud, the increased number of entry points increases risks and requires additional layers of security. Additionally, multi-vendor testing is essential for network assurance, as operators must carefully assess and maintain these risks to ensure network security and reliability.
It's important to remember that, as with any open-source technology, implementing Open RAN will require collaboration, innovation, and knowledge-sharing between leading tech vendors, BSS providers and industry players. Through utilising Open RAN, CSPs have a massive opportunity to upgrade their networks and create new ways to monetise their services.
