This assumes significance in the sense that open RAN technology which was expected to reduce the cost for network deployment by about 30% for telcos, instead has shown an over two times increase in the cost compared to current traditional RAN solutions, executives said. RAN constitutes a major portion of the capital expenditure (CapEx) of telecom operators.
Open RAN represents a novel approach to linking mobile devices with the core network. Unlike traditional radio access networks that rely on equipment from a single vendor, open technology enables service providers to mix and match components from various companies, reducing reliance on a limited number of vendors. Globally, US telecom operator AT&T plans to allocate approximately $14 billion over the next five years to implement open RAN technology. The company has partnered with Ericsson to deploy 70% of its wireless network traffic across open-capable platforms by 2026.
Jagbir Singh, chief technology officer at Vodafone Idea, remarked during an industry event last week that despite conducting trials for the past two to three years, they haven’t reached a level where commercial deployment of open RAN is feasible. Singh highlighted that the cost of deploying open RAN technology often exceeds that of traditional RAN, making it an unattractive option for operators. Challenges such as the unavailability of chipset vendors, proven software developers, and limited interest from major companies like Nokia and Ericsson are impeding the adoption of open RAN, according to experts.
Moreover, concerns regarding interoperability and network security pose additional hurdles to the widespread deployment of open RAN technology. Vodafone Idea recently initiated a pilot deployment of commercial Open RAN technology in collaboration with Mavenir, a provider of open radio access network technology, signaling progress in the adoption of this technology. Bharti Airtel has also engaged Mavenir to conduct trials of open RAN technology.
Saurabh Mittal, vice president and head of standards & technology at Bharti Airtel, emphasized the need to strike a balance between cost and performance with open RAN. Mittal highlighted that although open RAN is evolving rapidly, it still lacks full feature parity compared to traditional systems. Concerns about accountability and the sustainability of the open RAN ecosystem further complicate its adoption.
Industry experts suggest that open RAN technology missed opportunities in both 4G and 5G deployments due to various challenges. However, if these issues are addressed, there could be significant business opportunities for Vodafone Idea, which is yet to deploy 5G, as well as for equipment replacement demands in 4G and 5G networks. Reliance Jio has developed its own end-to-end 5G stack and asserts that its radios comply with open RAN standards.
