vRAN, short for virtualized radio access network , is the next step in the evolution of cellular networks due to the shift from fixed and expensive hardware-based networks to a cheaper software-based alternatives.
A typical radio access network is comprised of a remote radio unit (RRU) and a baseband unit (BBU), the baseband unit converts incoming signals from end user devices into data that can be transmitted to the core network using network cables or satellites. A vRAN differs from a typical radio access network in that the BBU becomes software with the computations being made virtually as opposed to on a complex system of hardware.
One of many benefits of adopting VRAN is the flexibility of network functions. This is key in discussions relating to 5G because supporting higher device density becomes paramount. Many carriers have also lowered costs by adopting VRAN.
ACG Research estimates that operators who virtualize their entire RAN can see savings of up to 44% in total cost of ownership (TCO). In fact, in 2021, due to the adoption of technology for the purpose of fulfilling 5G requirements, the radio unit component segment led the global market.
Another benefit of VRAN is its potential for cloud automation. Network virtualized automation software can be used to monitor performance as well as simplify maintenance.
Typically, part of a larger-scale network function virtualization (NFV) project, the VRAN process shares many similarities to the rapid virtualization of IT networks.