New Report Analyzes Impact of Open RAN on Mobile Industry and Potential for Long-Term Success
November 02 2021 - 4:00AM
What will it take for Open RAN to succeed and how far is it from
mainstream adoption? A new report released today by CCS Insight,
and sponsored by InterDigital, Inc. (NASDAQ: IDCC) explores the
reasons why Open RAN is generating excitement amongst various
industry stakeholders and questions whether the mobile industry
should temper its enthusiasm for a technology which has yet to
prove itself. It examines the expectations of mobile carriers and
network suppliers and brings into focus the political, commercial
and technological tensions that will determine its long-term
success.
The report, Open RAN: The Long Journey from Supporting Act
to Lead Role, discusses the potential impact that Open RAN is set
to have on the mobile industry, particularly as it promises to
create a more open, flexible, and adaptable network. Many have high
hopes for Open RAN, which sees the disaggregation of hardware and
software solutions with open interfaces and APIs, and which
leverages the adoption of commercial off-the-shelf hardware,
leading to greater vendor interoperability.
“This report comes at a moment when telcos are preoccupied with
the next stage of mobile network evolution, particularly as we move
into the 5G era, and contemplate 6G,” said Henry Tirri, CTO,
InterDigital. “It reflects the views of mobile carriers and
infrastructure suppliers regarding the adoption of Open RAN,
considers the motivating factors leading telcos to adopt, and
offers a transparent appraisal of the challenges associated with
such a large-scale transformation. This report delivers a thorough
examination of what’s missing and what’s required to turn ambition
into reality.”
The prospect for carriers looks promising, as they view its rise
to prominence as an opportunity to dynamically manage network
capacity and prioritize traffic – especially as 5G is set to
support a wide range of revenue generating, mission critical
applications. Many are finding ways to develop new and better
features in support of the network performance capabilities needed
to bring to fruition the potential of 5G networks. But Open RAN’s
evolution isn’t free from challenges either.
The report uncovers several findings, including:
- Open RAN’s rapid rise is a reflection
of mobile carriers’ desire to reduce their reliance on a small
number of technology suppliers, and to improve the economics of
network roll-outs
- Some critics point to the complexity
involved in incorporating an unproven technology platform that
could take years to establish standards and product maturity
- Some risk averse mobile operators
remain reticent about moving away from buying fully integrated
systems “off the shelf” from established suppliers
- Industry consensus suggests that
greater cooperation between carriers and equipment suppliers is
needed to identify and resolve the challenges associated with a
more virtualized, intelligent, automated, and software driven
network
- Attention needs to be paid to the role
of standards, as a lack of open interoperability standards leaves
little room for new RAN suppliers to diversify the RAN market
- The O-RAN Alliance and TIP are the two
main bodies driving standardization in Open RAN, as they strive to
create a level playing field for new entrants and design high level
technical requirements (testing and validating network elements,
products, and configurations)
- Cost remains a contentious part of the
Open RAN debate with disagreement over whether the agility and
flexibility brought by virtualization will lower costs, or if
slower time to market and higher operating and maintenance costs
will negatively impact the bottom-line
“Open RAN presents an opportunity to evolve and disrupt the
vendor ecosystem, bringing fresh choice for operators and
supporting the emergence of a host of new companies,” commented
Kester Mann, Director of Consumer and Connectivity at CCS Insight
and author of the report. “Yet the path ahead will not be entirely
smooth; the technology is unproven at scale and there are questions
over interoperability, pricing and security. Momentum is
undeniable, but it may be several years before we see a tangible
impact on the market.”
The report also notes that the exclusion of Chinese suppliers
from many national 5G networks has politicized the Open RAN debate.
The political landscape is clearly influencing the
telecommunications industry, with the effect that many governments
are actively supporting telcos with their Open RAN adoption. This
is evident in the U.S. where telecommunications legislation has
been introduced to promote the use of Open RAN.
To read the report, Open RAN: The Long Journey from
Supporting Act to Lead Role, please click here.
About InterDigital ®
InterDigital develops mobile and video technologies that are at
the core of devices, networks, and services worldwide. We solve
many of the industry’s most critical and complex technical
challenges, inventing solutions for more efficient broadband
networks, better video delivery, and richer multimedia experiences
years ahead of market deployment. InterDigital has licenses and
strategic relationships with many of the world’s leading technology
companies. Founded in 1972, InterDigital is listed on NASDAQ.
InterDigital is a registered trademark of InterDigital, Inc.
For more information, visit: www.InterDigital.com
InterDigital Contact: |
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Roya Stephens |
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Email: Roya.Stephens@interdigital.com |
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+1 (202) 349-1714 |
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