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Assessment of Open Ran: Difference between revisions
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As shown in figure 2, the Open Ran architecture disaggregates the BBU into DU and CU using the 3rd Generation Partnership Project (3GPP) standards and creates open interfaces between them. The open interfaces enable the operator to incorporate many vendors into its network, as we will discuss further in this report. However, it should be noted that this is not the only work of the Open Ran architecture. With Open Ran deployment, the operator benefits from its many other features. | As shown in figure 2, the Open Ran architecture disaggregates the BBU into DU and CU using the 3rd Generation Partnership Project (3GPP) standards and creates open interfaces between them. The open interfaces enable the operator to incorporate many vendors into its network, as we will discuss further in this report. However, it should be noted that this is not the only work of the Open Ran architecture. With Open Ran deployment, the operator benefits from its many other features. | ||
== Overview == | |||
Maybe use a table like in [[Meta Platforms]]? | |||
==Benefits of Open Ran== | ==Benefits of Open Ran== | ||
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As indicated above, most Open Ran deployments have been carried out in rural and low-density areas, which is troubling because it has yet to be known whether it will support clients' needs in high-density areas. For instance, although NTT Docomo claims its Open Ran deployment in Japan was successful, its deployment was mainly in rural areas, except for some deployments in metropolitan areas of Tokyo<ref>https://www.telecomtv.com/content/open-ran-summit-20/keynote-executive-interview-sadayuki-abeta-40209/</ref>. | As indicated above, most Open Ran deployments have been carried out in rural and low-density areas, which is troubling because it has yet to be known whether it will support clients' needs in high-density areas. For instance, although NTT Docomo claims its Open Ran deployment in Japan was successful, its deployment was mainly in rural areas, except for some deployments in metropolitan areas of Tokyo<ref>https://www.telecomtv.com/content/open-ran-summit-20/keynote-executive-interview-sadayuki-abeta-40209/</ref>. | ||
== Open Ran Can Reduce Costs By How Much? == | |||
The RAN segment consumes around 80% of the total CAPEX needed to build a network<ref name=":6" />. This calls for ways to reduce it, especially due to the rising challenges of flat revenues and increasing maintenance costs. Cost savings in Open Ran depend on many factors. For instance, an operator can save on the total cost of ownership(TCO) by choosing cheap vendors and proprietary solutions instead of COTs hardware. Adding visualization and cloud-native architecture will also help the vendor reduce maintenance costs. In general, cost savings can only be achieved if the operator chooses the most efficient options offered by Open Ran. But there have been testimonies confirming that Open Ran indeed reduces costs. For example, Rakuten said it reduced CAPEX by 40% when it deployed Open Ran instead of traditional Ran<ref>https://rakuten.today/blog/rakuten-mobile-technology-two-years-since-launch.html</ref>. A report by Deloitte indicates that Open Ran can reduce CAPEX and OPEX by up to 50% and 35%, respectively. | The RAN segment consumes around 80% of the total CAPEX needed to build a network<ref name=":6" />. This calls for ways to reduce it, especially due to the rising challenges of flat revenues and increasing maintenance costs. Cost savings in Open Ran depend on many factors. For instance, an operator can save on the total cost of ownership(TCO) by choosing cheap vendors and proprietary solutions instead of COTs hardware. Adding visualization and cloud-native architecture will also help the vendor reduce maintenance costs. In general, cost savings can only be achieved if the operator chooses the most efficient options offered by Open Ran. But there have been testimonies confirming that Open Ran indeed reduces costs. For example, Rakuten said it reduced CAPEX by 40% when it deployed Open Ran instead of traditional Ran<ref>https://rakuten.today/blog/rakuten-mobile-technology-two-years-since-launch.html</ref>. A report by Deloitte indicates that Open Ran can reduce CAPEX and OPEX by up to 50% and 35%, respectively. | ||
== When Will Open Ran Attain Maturity? == | |||
[[File:Forecasted revenue for Open Ran and Traditional Ran.png|thumb|372x372px|https://www2.deloitte.com/content/dam/Deloitte/pt/Documents/technology-media-telecommunications/TEE/The-Open-Future-of-Radio-Access-Networks.pdf]] | [[File:Forecasted revenue for Open Ran and Traditional Ran.png|thumb|372x372px|https://www2.deloitte.com/content/dam/Deloitte/pt/Documents/technology-media-telecommunications/TEE/The-Open-Future-of-Radio-Access-Networks.pdf]] | ||
Open Ran is swiftly advancing towards Multiple-Input Multiple-Output (MIMO) model. The highest level it has attained so far is the macro model<ref name=":4" />. Deloitte estimates that Open Ran will reach maturity in 3-5 years, with the revenue of public networks that deploy it coming at par with the revenue of traditional networks in 2028<ref name=":5" />. According to the forecast, Open Ran revenue will be around 12% of the total RAN revenue in 2022. Besides the desire by operators to reap the benefits of Open Ran, the current political environment favours it as it will help them to stay away from Chinese network vendors such as Huawei<ref name=":2" />. For instance, the US government has passed a bill to inject funding amounting to $750 million in the next ten years to support Open Ran deployments. Other governments, such as Japan, the UK, Germany, and India, have come up with similar support. | Open Ran is swiftly advancing towards Multiple-Input Multiple-Output (MIMO) model. The highest level it has attained so far is the macro model<ref name=":4" />. Deloitte estimates that Open Ran will reach maturity in 3-5 years, with the revenue of public networks that deploy it coming at par with the revenue of traditional networks in 2028<ref name=":5" />. According to the forecast, Open Ran revenue will be around 12% of the total RAN revenue in 2022. Besides the desire by operators to reap the benefits of Open Ran, the current political environment favours it as it will help them to stay away from Chinese network vendors such as Huawei<ref name=":2" />. For instance, the US government has passed a bill to inject funding amounting to $750 million in the next ten years to support Open Ran deployments. Other governments, such as Japan, the UK, Germany, and India, have come up with similar support. | ||
== Open Ran Deployments == | |||
Rakuten, Dish, and NTT Docomo are the only operators that have started deploying Open Ran at scale. However, many other operators have either started deploying Open Ran in rural areas or testing it in labs. Examples of these operators are Vodafone, AT&T, etisalat, MTN, and Telefonica. Below is a brief description of how far each network has gone. | Rakuten, Dish, and NTT Docomo are the only operators that have started deploying Open Ran at scale. However, many other operators have either started deploying Open Ran in rural areas or testing it in labs. Examples of these operators are Vodafone, AT&T, etisalat, MTN, and Telefonica. Below is a brief description of how far each network has gone. | ||
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3. Dish | 3. Dish | ||
Dish is the only operator in the US that has deployed Open Ran in its network. It is a greenfield operator with no 4G or legacy network. As such, its network is purely 5G. Dish's network also leverages cloud-native architecture. It was launched in May 2022 in Las Vegas, and by June 2022, Dish had expanded it to more than 120 cities in the US, hence offering more than 20% coverage to the US population<ref>https://about.dish.com/2022-06-15-DISHs-Smart-5G-TM-Wireless-Network-is-Now-Available-to-Over-20-Percent-of-the-U-S-Population</ref>. The company plans to meet its 70% coverage for the US population by 2023. Its Vice President of Technology Development, Sidd Chenumolu, acknowledged in an interview that Open Ran is a gateway to many untapped opportunities. He said, "Open RAN is our gateway in terms of programmability, flexibility, openness and disaggregation to try out new things, and to offer and deliver the services envisioned by 5G." However, he also confirmed that integration is the biggest challenge impacting Open Ran.<ref>https://about.dish.com/2022-06-15-DISHs-Smart-5G-TM-Wireless-Network-is-Now-Available-to-Over-20-Percent-of-the-U-S-Population</ref> | Dish is the only operator in the US that has deployed Open Ran in its network. It is a greenfield operator with no 4G or legacy network. As such, its network is purely 5G. Dish's network also leverages cloud-native architecture. It was launched in May 2022 in Las Vegas, and by June 2022, Dish had expanded it to more than 120 cities in the US, hence offering more than 20% coverage to the US population<ref>https://about.dish.com/2022-06-15-DISHs-Smart-5G-TM-Wireless-Network-is-Now-Available-to-Over-20-Percent-of-the-U-S-Population</ref>. The company plans to meet its 70% coverage for the US population by 2023. Its Vice President of Technology Development, Sidd Chenumolu, acknowledged in an interview that Open Ran is a gateway to many untapped opportunities. He said, "Open RAN is our gateway in terms of programmability, flexibility, openness and disaggregation to try out new things, and to offer and deliver the services envisioned by 5G." However, he also confirmed that integration is the biggest challenge impacting Open Ran.<ref>https://about.dish.com/2022-06-15-DISHs-Smart-5G-TM-Wireless-Network-is-Now-Available-to-Over-20-Percent-of-the-U-S-Population</ref> | ||
== Final Assessment == | |||
To add. | |||
==References== | ==References== | ||
<references /> | <references /> | ||