There is likely a gap between the marketing and the reality of so-called open radio access networks
The industrial drive for OpenRAN comes in part from mobile operators wanting to reduce cost and improve profitability. It’s their strategy to commoditize equipment vendors the way that unbundling was proposed as a solution to “open” up telecom networks. OpenRAN also doubles as a solution to a perceived geopolitical problem of the US not having home grown 5G infrastructure providers.
In any event, the outsized policy focus on the RAN market misses the big picture of the 5G economy. Mobile operators globally spend $170 billion annually in capital expenditure; RAN accounts for $30 billion. Thein 73 countries today have been built with regular RAN equipment, save for Japan’s Rakuten with its proprietary OpenRAN solution. While there are different projections, a defendable horizon for OpenRAN is achieving 5G readiness in 2025 with an install base of 1 percent.
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