Open RAN technology is steadily gaining ground among mobile network operators (MNOs) worldwide, with analysts predicting that revenues will approach $20 billion over the next five years. Although there is still some industry skepticism about the widespread adoption of this technology, those MNOs that are deploying 5G Open RAN are realizing several expected benefits, including faster innovation, lower costs and more flexible deployments.
Yet, there is one consequence of Open RAN that is often overlooked. The introduction of open interfaces in Open RAN and other network disaggregation technologies is helping to lower the barrier for new market entrants.
With support from industry organizations like xRAN, O-RAN ALLIANCE, the Telecom Infra Project (TIP) and others, we are seeing an influx of ‘new blood’ from a myriad of suppliers. New market entrants range from traditional hardware manufacturers and application developers, to cloud providers and security software vendors.
However, a lower entry barrier does not necessarily guarantee success in this fast-growing ecosystem. With new levels of innovation, RAN performance goals are exceeded on a daily basis, raising the bar on performance. As MNOs’ expectations for quality and reliability increase, 5G suppliers are under even more pressure to continuously innovate and improve… or face sudden death.
Cutting-edge innovation
In the days of legacy network infrastructure, suppliers invested billions of dollars to develop an extensive portfolio of proprietary radios, interfaces, base band units, software and base station controllers, plus network management systems to control the entire system. Each vendor developed their own version of each and every network element, requiring not only considerable sums of money, but also a small army of talented people with a broad skillset.
Nevertheless, making investments in proprietary infrastructure was not just a one-sided affair. MNOs also needed to train their staff on the deployment, operation and troubleshooting of each vendor’s equipment. Moreover, the MNO needed to keep a collection of component spares on hand for each vendors’ equipment. The prospect of switching vendors was an expensive and arduous undertaking that not only necessitated increased expenditures for new hardware and training, but also involved complex upgrades performed during off-peak hours to install and turn up new equipment.
A primary impetus for disaggregating the network was the desire to break the vendor lock-in and all that it entailed. With increased use of virtualization in Open RAN, software is no longer proprietary to specific hardware vendors, allowing MNOs to use commercial off-the-shelf (COTS) hardware designed for hyperscalers and take advantage of economies of scale to reduce costs. Furthermore, open interfaces and industry standards enable MNOs to select best-of-breed network elements as they build out multi-vendor Open RAN networks.
Now, a new market entrant does not need significant budget and resources to develop an entire RAN portfolio; rather, they could specialize in doing one particular thing very well. An innovative start-up could focus on designing equipment for in-building microcells, for example, or leveraging artificial intelligence (AI) to create xApps or rApps for specific use cases. With this lowered barrier to market entry, the proliferation of Open RAN technology can vastly accelerate the speed of innovation.
DISH Network’s Open RAN implementation is a prime example. With access to an open ecosystem, the operator was able to source high-performance, triple-band radios that were customized to their frequency bands in a compact package. This capability enabled DISH to lower cell site costs, reduce weight load on the towers and improve power savings.
A double-edged sword
It’s important to remember that although Open RAN makes it easier for new ecosystem players to enter the market, it also can expedite their market exit. Today’s MNO is under considerable competitive pressure to keep innovating, even as they reduce costs. Implementing a multivendor network presents enough challenges — network operators don’t have time for vendors that fail to innovate.
With the decoupling of traditional hardware and software platforms, a supplier’s virtualized software can be remotely swapped out overnight without having to visit thousands of sites to perform complex cutovers. Likewise, a hardware vendor that is not keeping up with the latest advancements can be replaced without the need to go back and test every aspect of the software all over again.
Open RAN is not just about giving MNOs the most options for vendor selection, but rather, the best options. By tapping into the creativity fueled by constant competition within an open ecosystem, MNOs can ensure they always have access to the latest innovations to continuously improve network quality and profitability.
As Open RAN enables ever greater innovation, MNOs are likely to continually raise their expectations for hardware and software performance. And with a network that is increasingly disaggregated, switching suppliers is easier than ever before. That means that if vendors want to survive, they had better stay on their toes and keep innovating. Otherwise, MNOs deploying Open RAN will show them the open door.
