Assessment of Open Ran: Difference between revisions

Most telecommunications executives interviewed by Senza Fili believe that Open Ran is the greatest disruptions in the industry. Patrick Lopez, Global VP of Product Management for 5G at NEC said, “If we look at how fast Open RAN has emerged and reached a level of maturity that allows deployments at scale, we may conclude that it is one of the fastest-moving technologies in the telecom market ever.”  <ref name=":4">https://senzafili.com/wp-content/uploads/2022/12/SenzaFili_DD_ORAN_Ecosystem.pdf<!-- Page 48 --> page. 48</ref> His views were echoed by others who believe that Open Ran would help them solve vendor-lock ins and other issues that were common in the traditional RAN. However, they also noted that Open Ran comes with its own challenges, which need the cooperation of the whole industry to overcome them. The greatest challenge being integration. Santiago Tenorio, Head of Network Strategy & Architecture at Vodafone once said in a webinar<ref name=":6">https://www.parallelwireless.com/wp-content/uploads/Parallel-Wireless-e-Book-Everything-You-Need-to-Know-about-Open-RAN.pdf<!-- Page 48 --><nowiki/>page.48</ref>, “We haven’t even scratched the surface of system integration challenges.” The good news is that integration is easier in greenfield deployments when compared to brownfield deployments. That is why most deployments have been in rural areas where the operators have to start from scratch. Deloitte estimates that as of December 2020, there were 35 Open Ran deployments in the world<ref>https://www2.deloitte.com/content/dam/Deloitte/pt/Documents/technology-media-telecommunications/TEE/The-Open-Future-of-Radio-Access-Networks.pdf<nowiki/>page.6</ref>. Around 85% of the deployments were in developing markets, with the majority being done in rural areas. But what exactly is Open Ran? Can it replace the traditional RAN? Does it reduce costs as argued by most experts? Let’s have a look!   

[[File:Traditional Ran image.png|thumb|332x332px|https://www.ifri.org/sites/default/files/atoms/files/velliet_open_ran_2022_us.pdf<nowiki/>page.8]]

[[File:Open RAN IMAGE.png|thumb|330x330px|https://www.ifri.org/sites/default/files/atoms/files/velliet_open_ran_2022_us.pdf<nowiki/>page.10]]

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.       

|There is a growing number of Open Ran labs aimed at solving integration and interoperability challenges

==Benefits of Open Ran==

Open Ran has received a lot of interest from telcos due to its many expected benefits. Its ability to expand into other areas, such as automation and virtualization, makes industry players want to deploy it as soon as possible. Below are its main benefits.   

Vendor lock-in is when the network operator is restricted to only one vendor. For instance, in vendor lock-in, the player supplying the hardware should be the same one supplying the software. As illustrated by the Parallel Wireless chart below, Open Ran removes such vendor lock-ins<ref>https://www.parallelwireless.com/wp-content/uploads/Parallel-Wireless-e-Book-Everything-You-Need-to-Know-about-Open-RAN.pdf page.15</ref>. With Open Ran, an operator can add software from vendor B to hardware from vendor A and vice versa being true.  

Open Ran provides flexibility in many ways<ref name=":0">https://senzafili.com/wp-content/uploads/2022/12/SenzaFili_DD_ORAN_Ecosystem.pdf page.12</ref>. First, it enables the vendor to choose its hardware and software supplier. This improves the quality of the network. Secondly, it enables the vendor to choose the timeline of various deployments within the Open Ran architecture. For example, the operator can start with a single vendor and then initiate multi-vendor deployments later. Similarly, the operator can choose whether to deploy visualization and automation immediately or wait until the first phase pays off first. Thirdly, Open Ran enables the operator to optimize the network to meet their needs, unlike when the vendor provided a single optimized solution.

Open Ran removes the monopolistic behavior that has dominated the industry for a long-time. Traditionally, the supply of hardware and software products was shared among three players, namely Ericsson, Nokia, and Huawei<ref>https://www.ifri.org/sites/default/files/atoms/files/velliet_open_ran_2022_us.pdf page.4</ref>. This made the closed network solution supplied by these vendors expensive. However, Open Ran will create diversity as Dr. Femi Adeyemi, Head of Wireless at Fujitsu Network Communications<ref name=":0" />, said, “The entrance barriers are low, and many new players can enter the environment. But the exit barriers are also low. A wide ecosystem forces vendors to be competitive.” Competition among the different vendors will necessitate innovation in an effort to stay relevant in the market. His words were echoed by Peter Claydon, President of Picocom<ref name=":0" />, who said, “Open RAN can democratize the ecosystem by lowering the barriers to entry and allowing more players to enter the market.” With more players, supply of hardware and software solutions will increase, resulting in lower prices.

Open Ran introduces complexity that did not exist in traditional Ran<ref name=":2">https://www2.deloitte.com/content/dam/Deloitte/pt/Documents/technology-media-telecommunications/TEE/The-Open-Future-of-Radio-Access-Networks.pdf<nowiki/>page.10</ref>. This will encourage the operator to deploy various automation features such as Ran Intelligent Controller (RIC), which manages the APIs deployed in the network. RIC leverages analytics and AI/ML, hence resolving issues within the shortest time possible.

Although Open Ran can do without Virtual Ran (vRan) and Cloud Ran(cRan), their addition to the network will enable the operator to reap its full benefits<ref name=":0" />. Virtualization is the separation of hardware and software features. On the other hand, Cloud Ran refers to the realization of RAN functions over a generic computing platform instead of visiting a network site. Any RAN performance issues can cause havoc to the customer; hence its operations need to be handled via a data center approach<ref name=":2" />. This is accomplished via virtualization and cloud-native architecture. It should also be noted that the RAN’s flexibility will not be fully achieved without virtualization.

Open Ran eliminates reliance on one vendor. This was common in single vendor deployments; hence fixing issues were prone to take a long time. With multi-vendor deployments, an issue affecting the network falls on all parties involved<ref name=":3">https://www.parallelwireless.com/wp-content/uploads/Parallel-Wireless-e-Book-Everything-You-Need-to-Know-about-Open-RAN.pdf page.44</ref>. This protects the operator's investment and reduces adverse impact on the end-user.  

An issue within the network affects all parties involved. Since each vendor would want to protect their reputation, teamwork is created. This allows for automation such as continuous integrations(CI) and continuous deployments(CD), making deployment and fixing errors fast and reliable<ref name=":32">https://www.parallelwireless.com/wp-content/uploads/Parallel-Wireless-e-Book-Everything-You-Need-to-Know-about-Open-RAN.pdf page.44</ref>. Also, CI/CD will foster innovations in that many individuals will work on Open Ran.

==Challenges of Open Ran==

As already mentioned, integration is the main issue facing Open Ran. The challenge is even bigger in bluefield deployments since the operator has to integrate the legacy Ran with Open Ran. That is why bluefield operators are transitioning into Open RAN gradually instead of going into it at full speed. Indeed, it's not surprising that greenfield operators such as Rakuten and Dish are among the first to deploy Open RAN<ref name=":02">https://senzafili.com/wp-content/uploads/2022/12/SenzaFili_DD_ORAN_Ecosystem.pdf page.20</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>.

=== 4. Open Ran performance has not been fully proven===

Open Ran players such as Rakuten and Dish have yet to prove whether Open Ran is better than the traditional Ran<ref>https://www2.deloitte.com/content/dam/Deloitte/pt/Documents/technology-media-telecommunications/TEE/The-Open-Future-of-Radio-Access-Networks.pdf page.10</ref>. It's one way to forecast and another way to achieve.

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>.

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.

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>https://www2.deloitte.com/content/dam/Deloitte/pt/Documents/technology-media-telecommunications/TEE/The-Open-Future-of-Radio-Access-Networks.pdf<nowiki/>page.7</ref>. 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.  

The following companies have started deploying Open Ran for commercial purposes.

Rakuten was the first greenfield operator to launch Open Ran at scale in its commercial network in Japan. It began building its network in 2018. However, it was in 2020 that it started constructing its 4G network. Six months later, it launched 5G in its network<ref>https://senzafili.com/wp-content/uploads/2022/12/SenzaFili_DD_ORAN_Ecosystem.pdf page.62</ref>. It is currently creating massive MIMOs for its Open Ran architecture<ref>https://symphony.rakuten.com/blog/rakuten-mobile-expands-rakuten-symphonys-symware-product-family-with-open-ran-based-5g-massive-mimo-solutions-from-qualcomm-technologies</ref>. The interesting thing about Rakuten's network is that it's visualized, automated, and based on cloud-native architecture. This means it can reap all the benefits associated with Open Ran. For instance, Rakuten said that by integrating antenna and radio heads, it was able to reduce the length of cables, hence achieving 30% more coverage per site compared to traditional RAN<ref>https://rakuten.today/blog/rakuten-mobile-technology-two-years-since-launch.html</ref>. As of June 2022, Rakuten's 4G network had 97.6% coverage, with the number of base stations reaching 47,556<ref>https://rakuten.today/blog/fy2022-q2-results.html</ref>. It aims to attain 99% 4G coverage in 2023 with more than 60,000 base stations.   

NTT Docomo is one of the cheerleaders supporting the deployment of Open Ran architecture. In fact, it has a lab in its research and development(R&D) center dedicated to testing and verification of Open Ran systems<ref>https://www.fiercewireless.com/5g/ntt-docomo-shares-open-vran-lab-global-carriers</ref>. The lab is shared with thirteen other global vendors, which include Vmware, Red Hat, Intel, NEC, Fujitsu, etc. Docomo started deploying multi-vendor Open Ran in its 4G and 5G networks in September 2019<ref>https://www.docomo.ne.jp/english/info/media_center/pr/2019/0918_00.html</ref>. Its goal was to have 10,000 base stations by June 2021, 20,000 base stations by March 2022, and 90% coverage by March 2024<ref>https://www.mobileworldlive.com/asia/asia-news/docomo-takes-open-ran-expertise-to-the-world/#:~:text=Abeta%20said%20Docomo%20plans%20to,nearly%2084%20million%20mobile%20customers.</ref>. According to its vice president Sadayuki Abeta, Docomo's multi-vendor network is currently at the commercial stage<ref name=":42">https://www.telecomtv.com/content/open-ran-summit-20/keynote-executive-interview-sadayuki-abeta-40209/</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://senzafili.com/wp-content/uploads/2022/12/SenzaFili_DD_ORAN_Ecosystem.pdf page.33</ref>

In August 2021, 1&1 signed a contract with Rakuten to build a 5G network using Open Ran<ref>https://rakuten.today/blog/1and1-rakuten-partner-to-build-open-ran-mobile-network.html</ref>. This made 1&1 the first greenfield operator in Europe to tap the benefits of Open Ran. Its architecture is based on Rakuten's playbook; hence it has been tried and tested. 1&1 has an obligation to provide 25% and 50% coverage to German citizens by 2025 and 2030, respectively<ref>https://imagepool.1und1.ag/v2/download/praesentationen/2019-06-27-5G_Rationale-eng.pdf<nowiki/>page.10</ref>. That means its Open Ran network should be operational by then.

== Other Expected Open Ran Deployments ==

Many other bluefield operators are working on a roadmap to see that they deploy Open Ran as soon as possible. As a matter of fact, some of them have already deployed Open Ran in rural areas. Since they must integrate Open Ran with their traditional network, their Open Ran deployment is expected to happen gradually<ref>https://senzafili.com/wp-content/uploads/2022/12/SenzaFili_DD_ORAN_Ecosystem.pdf<nowiki/>page.20</ref>. Examples of these operators are Vodafone, AT&T, Orange, etisalat, MTN, Airtel, Inland Cellular, and Telefonica. Below is a brief description of how far each network has gone<ref>https://www2.deloitte.com/content/dam/Deloitte/pt/Documents/technology-media-telecommunications/TEE/The-Open-Future-of-Radio-Access-Networks.pdf<nowiki/>page.9</ref>.

Although Vodafone is one of the pioneers of Open RAN, it only recently started deploying it in commercial areas. Vodafone has been testing Open Ran for over five years<ref>https://www.parallelwireless.com/wp-content/uploads/Parallel-Wireless-e-Book-Everything-You-Need-to-Know-about-Open-RAN.pdf<nowiki/>page.56</ref>. In 2019, it became the first operator to move Open Ran from the lab to the rural areas of South Africa and Turkey. That, too, became a success, and at the end of 2019, its CEO Nick Read said, “We are pleased with trials of OpenRAN and are ready to fast track it into Europe as we seek to actively expand our vendor ecosystem. OpenRAN improves the network economics enabling us to reach more people in rural communities and that supports our goal to build digital societies in which no-one is left behind.” In the same year also, Vodafone initiated Open RAN trials in the UK<ref>https://www.vodafone.com/news/technology-news/vodafone-pioneers-innovative-network-tech-to-increase-suppliers-and-extend-rural-internet-access</ref>. In January 2022, the company was able to switch to live deployment in Bath, Somerset, one of the 2,500 sites where Vodafone plans to deploy Open RAN at scale<ref>https://www.vodafone.com/news/technology/5g-open-ran-first-uk-site</ref>. It now plans to have 30% of its European base stations running on Open RAN by 2030<ref>https://www.vodafone.com/news/technology/vodafone-nokia-partner-advance-open-ran-ecosystem-europe</ref>.   

In 2020, Etisalat announced that it would deploy Open vRAN across the UAE to reap the new architecture's benefits. Its senior vice president, Saeed Al Zarouni, had said, "Deploying the open vRAN is vital in enabling digital tRANsformation aimed at increasing efficiencies and the utilization of AI [artificial intelligence]."<ref>https://www.lightreading.com/5g/etisalat-to-build-open-ran-across-uae/d/d-id/756571</ref> This was followed by several Open RAN tests in the Middle East, Africa, and Asia<ref>https://www.fiercewireless.com/wireless/etisalat-taps-parallel-wireless-for-open-ran-trials</ref>. By March 2021, Etisalat had contracted Parallel Wireless, Intel, and Supermicro to replace its existing 2G, 3G, and 4G network in Afghanistan with Open RAN systems<ref>https://www.mobileworldlive.com/featured-content/home-banner/etisalat-to-bring-open-ran-to-afghanistan/</ref>. In March 2022, Etisalat and other middle eastern operators such as Zain Group, Mobily, and Emirates Integrated Telecommunications Company (EITC) launched the Middle East Lab to help them deploy Open RAN in the Middle East<ref>https://telecominfraproject.com/middle-east-operators-establish-regions-first-open-ran-centralised-test-lab-in-collaboration-with-tip-and-intel/</ref>.