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Assessment of Open Ran: Difference between revisions
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Multiple vendors can only be used in the network if their hardware and software solutions are compatible. Although O-Rance Alliance provides a platform for interoperability testing, such testing is not enough to ensure compatibility between different vendor solutions<ref>https://senzafili.com/wp-content/uploads/2022/12/SenzaFili_DD_ORAN_Ecosystem.pdf page.20</ref>. Also, interoperability is a continuous process which is time consuming and expensive. For instance, interoperability testing should be done everytime there is a software update<ref>https://senzafili.com/wp-content/uploads/2022/12/SenzaFili_DD_ORAN_Ecosystem.pdf page.8</ref>. | Multiple vendors can only be used in the network if their hardware and software solutions are compatible. Although O-Rance Alliance provides a platform for interoperability testing, such testing is not enough to ensure compatibility between different vendor solutions<ref>https://senzafili.com/wp-content/uploads/2022/12/SenzaFili_DD_ORAN_Ecosystem.pdf page.20</ref>. Also, interoperability is a continuous process which is time consuming and expensive. For instance, interoperability testing should be done everytime there is a software update<ref>https://senzafili.com/wp-content/uploads/2022/12/SenzaFili_DD_ORAN_Ecosystem.pdf page.8</ref>. | ||
===3. Commercial off-the-shelf(COTs) hardware increases | ===3. Commercial off-the-shelf(COTs) hardware increases OPEX cost=== | ||
Although COTs hardware is cheap to acquire and enables faster deployments, it can result in higher OPEX costs. This is because, unlike proprietary solutions, COTs hardware is not optimized. As such, they end up consuming a lot of power. But the industry is now moving towards alternative solutions which use optimized silicon<ref>https://senzafili.com/wp-content/uploads/2022/12/SenzaFili_DD_ORAN_Ecosystem.pdf page.12</ref>. | Although COTs hardware is cheap to acquire and enables faster deployments, it can result in higher OPEX costs. This is because, unlike proprietary solutions, COTs hardware is not optimized. As such, they end up consuming a lot of power. But the industry is now moving towards alternative solutions which use optimized silicon<ref>https://senzafili.com/wp-content/uploads/2022/12/SenzaFili_DD_ORAN_Ecosystem.pdf page.12</ref>. | ||
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== Open Ran Can Reduce Costs By How Much? == | == 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 | 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 by up to 50% and 35%, respectively. | ||
== When Will Open Ran Attain Maturity? == | == When Will Open Ran Attain Maturity? == | ||