Open RAN (Radio Access Network) technology presents significant opportunities for Indian startups to develop an ecosystem that can be applied both domestically and globally.
“Our industry is poised to become a global supplier for Open RAN technology. BSNL will also begin trials for Open RAN by next month,” said RK Upadhyay, CEO of the Center for Development of Telematics (C-DOT), during his keynote address at Open RAN virtual summit.
Currently, the Open RAN market is valued at around $2 billion and is expected to grow to $15.6 billion by 2027 and $32 billion by 2033. With RAN accounting for 70% of a telecom operator’s capital expenditure, global and Indian telcos are heavily exploring Open RAN solutions.
The government is promoting Open RAN as an alternative to traditional RAN deployments, encouraging innovation and a diverse supply chain from trusted sources. This has allowed new players to enter the market and compete with established companies.
Experts believe Open RAN holds immense potential for startups, offering numerous opportunities for innovation within the telecom ecosystem by leveraging open and interoperable standards. A key advantage is cost reduction, as it allows telcos to mix and match hardware and software from different vendors. Currently, there are around 45 Open RAN deployments globally, with trials underway for another 31 deployments at various locations.
However, there are challenges related to interoperability and integration. Open interfaces also raise security concerns, unlike traditional black-box systems with non-transparent implementation details.
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“Security measures need careful consideration. There’s also the question of performance—whether Open RAN can meet the KPIs achieved by traditional systems. This is a current challenge but will be resolved over time. Support from vendors and integrator partners must be aligned to ensure the success of Open RAN,” Upadhyay said.
Another advantage of Open RAN is the use of open-source software, which reduces fragmentation and enhances interoperability. Open-source software is publicly accessible, allowing anyone to review, fix bugs, and address security vulnerabilities.
Additionally, Open RAN adopts a cloud-native architecture, leveraging principles such as elasticity, resilience, and automation. Deploying Open RAN in the cloud allows operators to benefit from cost savings through resource pooling and automated management. The cloud-native architecture also enables operators to scale their networks more efficiently, allowing quick responses to changing market demands,” the C-DOT executive added.