iGR OpenRAN Integration White Paper Feb 2021
Open RAN Integration: Run
White Paper First Quarter 2021
Executive Summary
The Open RAN concept and movement is not new – mobile operators and network and technology vendors have been developing solutions, conducting trials and deploying networks for the last few years. The important point is that Open RAN networks are being deployed today by major operators around the world – this is no longer a science experiment.
The Open RAN concept is about disaggregating the RAN functionality by building networks using a fully programmable software-defined mobile network solution based on open interfaces – radios, base stations, etc. – that runs on commercial, off-the-shelf hardware (COTS) with open interfaces.
There are two main organizations driving Open RAN:
- OpenRAN refers to the project group that is a part of the Telecom Infra Group (TIP).
- The O-RAN Alliance, founded in 2018 by AT&T, China Mobile, Deutsche Telekom, NTT DOCOMO, and Orange.
A recent important step in the development of the Open RAN ecosystem was an alliance agreement between the two organizations, allowing them to share information, reference specifications, and conduct joint testing and integration efforts.
Open RAN software and hardware vendors have been developing network solutions for the last few years. iGR identified 23 publicly announced MNOs around the world using equipment from multiple vendors, including Altiostar, Mavenir, and Parallel Wireless, who had deployed Open RAN in commercial networks. These MNOs have collectively over 1.308 billion subscribers and operate in regions with a total population of nearly 2.459 billion.
This means that these operators are responsible for 25.2 percent of the world’s mobile subscriber base. iGR estimates that by 2025, Open RAN will be used by MNOs that collectively are responsible for 52.5 percent of the global subscriber base.
As a visual example of how widespread Open RAN is becoming, consider the following:
United States:
- Dish has announced that Mavenir and Altiostar will provide Open vRAN software, MTI and Fujitsu will provide radio units, and Intel will provide its FlexRAN reference architecture.
- Inland Cellular, a small regional operator in Idaho, is using a Parallel Wireless-powered radio network.
- Optimera, a provider in Alaska, is using a 4G Parallel Wireless system.
- Vodafone, Ireland is operating approximately 30 rural and semi-rural sites with Parallel Wireless.
United Kingdom:
- Vodafone has committed to deploying 2,600 rural Open RAN sites.
- O2 is using Mavenir for some dedicated private network 5G testbeds and trials.
Bharti Airtel, India:
- Using Altiostar for an Open vRAN deployment.
Indosat Ooredoo, Indonesia:
- Conducting Open RAN field trials.
Figure 1: Open RAN commercial deployments
Source: iGR; company reports; 2021
Clearly, Open RAN is no longer a regional solution, nor one that only applies to greenfield operators. It has been deployed to support legacy 2G and 3G network technologies, as well as 4G LTE and 5G.
Benefits of Deploying Open RAN Include:
- 49% CapEx savings compared to traditional deployment options (Accenture).
- 37% savings for a cloud RAN deployment over five years (Senza Fili).
- 40% lower CapEx and 34% lower OpEx compared to a legacy RAN (Strategy Analytics).
Figure 2: O-RAN Alliance Architecture
Source: O-RAN Alliance, 2019
What is Open RAN?
The Open RAN concept involves building networks using programmable software-defined solutions based on open interfaces that run on COTS hardware. Disaggregation means separating hardware from software, continuing the split between control and user planes into 5G base stations and radios.
The Open RAN Ecosystem
Two main organizations drive the Open RAN movement:
- OpenRAN (TIP): Focuses on fully programmable RAN solutions.
- O-RAN Alliance: Aims to standardize interfaces.
This open ecosystem enables a vibrant market for complete solutions and components that take advantage of the latest computing capabilities.
Industry Challenges Driving Open RAN
Legacy RAN vendors provide proprietary solutions, limiting competition and innovation. Expanding the radio ecosystem and ensuring interoperability among different vendor technologies remains crucial to the Open RAN movement.
Open RAN Integration
Open RAN is being deployed across various markets by multiple MNOs. Integrating Open RAN solutions involves:
- Ecosystem Integration: Combines hardware, software, systems integrators, data centers, and MNOs.
- System Integration: Similar to data center environments, achieving integration amongst diverse vendors.
Open RAN Case Studies
Several MNOs are successfully deploying Open RAN, including:
- DISH Network: Building a nationwide 5G Open RAN network.
- MTN: Deploying Open RAN technology at over 5,000 rural sites in Africa.
- Rakuten: Implemented a multi-vendor RAN with significant cost savings.
- Vodafone: Engaged heavily in Open RAN initiatives to spur innovation and reduce costs.
Vendor Profiles
- Altiostar: Provides open virtualized RAN software to build disaggregated networks.
- Mavenir: Offers a comprehensive product portfolio across network infrastructure.
- Parallel Wireless: Develops cloud-native, software-enabled Open RAN solutions for mobile operators.
About iGR
iGR is a market strategy consultancy focused on the wireless and mobile communications industry. Founded by Iain Gillott, it researches the impact of wireless technologies on industry competitiveness and strategic business planning.