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Assessment of Open Ran: Difference between revisions
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== Final AssessmenT == | == Final AssessmenT == | ||
Even though most Open RAN deployments are those done by greenfield operators, the industry is | Even though most Open RAN deployments are those done by greenfield operators, the industry is genuinely shifting towards this new technology. As such, companies that don't make plans to have it in their network architecture may not be able to compete favorably in the future. Most bluefield operators, such as Vodafone, Telefonica, AT&T, Orange, etc., have already devised plans to deploy it in the future. If the current trends continue, we expect more bluefield Open RAN deployments to occur in 2023. CEO of Ericsson, Börje Ekholm, acknowledged in 2020 that Open RAN will happen and will affect its business. He said, "I don't really see Open RAN to have a major impact in 2021-22 timeframe, but after that I think it will start to impact revenues for us – it will start to impact the way business models evolve going forward. So one should think of this as an opportunity where we will position ourselves as well. It's no different than other technology shifts that have happened in the industry – it's all about leading on that development and leading on that front, and then we have a very good opportunity."<ref>https://www.telecomtv.com/content/open-ran/ericsson-ceo-sees-open-ran-impact-from-2023-39986/</ref> | ||
Open RAN offers many benefits such as multi-vendor deployments, use of RIC, visualization, etc. However, it also has | Open RAN offers many benefits, such as multi-vendor deployments, the use of RIC, visualization, etc. However, it also has challenges, such as integration and interoperability issues. Some industry players believe there is a trade-off between the benefits and costs. But when the two are analyzed critically, it can be concluded that Open RAN results in TCO reduction by 40-50%. Even if we assume the worst-case scenario, "Open RAN does not result in cost reduction," flexibility alone will still be enough to outperform the traditional RAN. With flexibility, operators can protect their investment by deploying a 2G network in areas that don't have wireless networks while deploying 4G or 5G networks in other regions without breaking down the network. Flexibility will also allow the operator to choose when to deploy cloud-native architecture and RIC since they won't have to reap out the network. In general, a lot can be achieved with a flexible RAN. | ||
Because there is a growing number of Open RAN labs targeted at solving integration and interoperability issues, we can expect those operators concerned with such problems to change their minds. That said, greenfield deployments will continue rising as Open RAN maturity approaches. The current projection indicates that Open RAN will achieve maturity in 2028. This is achievable considering that operators like 1&1, Rakuten, Dish, and DTT Docomo would have deployed it at scale in macro and MIMO settings. However, we don't expect Open RAN to replace traditional RAN completely since some operators would prefer a single vendor in some instances. As Patrick Lopez, Global VP of Product Management for 5G at NEC, notes, "I don't think Open RAN will replace all traditional RAN deployments. There will be a space for every type of RAN. In some cases, deploying a specialized, proprietary RAN system from one vendor will make sense. In most other cases, it will make more sense to have a multi-vendor implementation where you can use resource pooling."<ref>https://senzafili.com/wp-content/uploads/2022/12/SenzaFili_DD_ORAN_Ecosystem.pdf<nowiki/>page. 48</ref> | |||
==References== | ==References== | ||
<references /> | <references /> | ||