Open RAN has proven itself in the field and in the lab, but decision makers within network operator organizations remain cautious about this technology. They know it requires engineers to think differently about the network, so they are taking baby steps. Some are opening interfaces but sticking to single vendor solutions. Others are working with multiple vendors but are deploying open RAN in just a few select locations.
The industry has learned that open RAN brings new integration challenges, but also new revenue opportunities. These opportunities make it worthwhile for operators to scale the learning curve necessary to deploy open RAN. And by adopting a centralized RAN Intelligent Controller (RIC) early in the process, operators can start to monetize their networks and recoup some of their significant investments into 5G.
Already, enterprise customers are paying for AI-driven applications like call summarization and analysis. These apps use data that traverses MNO networks, but operators do not usually capture this enterprise revenue. An open radio access network gives operators a way to expose APIs to AI application developers and partner with these innovators in order to participate more fully in new service offerings.
Open RAN benefits have been demonstrated
Open interfaces enable networks to leverage third-party applications that optimize performance, thereby reducing operating expenses. Open RAN also creates a cost structure that is lower than that of traditional network architectures, because operators can purchase commercial off-the-shelf servers instead of purpose-built hardware. Software providers can compete to supply operators with the most cost-effective solutions.
Whichever solution an operator picks, it should interoperate with other elements of the open RAN network. Dozens of companies have worked together to develop a robust open RAN ecosystem. The O-RAN Alliance hosts periodic plugfests, provides reference setups and testbeds, awards certifications, and oversees conformance, interoperability and end-to-end testing of solutions. Collaborative tests have identified new ways to optimize the RAN and to introduce new innovations and services. For example, working with more than 20 software and hardware partners, European operators have used xApps to demonstrate the ability of an open RAN network to maintain quality of service for emergency responders when the network is highly congested. This could give operators the chance to offer public safety customers higher KPIs than other network users.
Other tests have demonstrated the reliability and security of open RAN networks. Nonetheless, some operators worry that open RAN is not ready for prime time and could somehow degrade customer experiences. But history has shown that degradation of the customer experience results from under-investment in the network. Network operators have cash constraints, but so far they have continued to prioritize network upgrades and maintenance. Investing in open RAN can establish the foundation for networks with lower operating costs and higher ARPU going forward.
From network operator to network innovator: Open RAN success stories
The network of the future may be defined by servers and radios, not cell sites and base stations. Operators are starting to see this possibility and are investing accordingly. So far, the results are promising.
DISH Network executives have said open RAN enables the company to offer cellular service to customers at lower price points than competitors. However, the operator also noted that the integration and management of various vendor solutions was a challenge. Therefore, Dish adopted VMware’s advanced automation and assurance solutions, as part of service management and orchestration. This enabled real-time monitoring and automation, enabling more efficient management of its open RAN network.
AT&T has committed to spend billions on open RAN and has said it will open parts of its network to third party apps. Like Dish, AT&T prioritized the service management orchestration layer. AT&T has said that while one vendor will provide this software, radio software could come from multiple vendors. By 2026, AT&T expects 70% of its wireless traffic to flow across open capable platforms.
Operators want to move traffic to open RAN because it makes economic sense to do so. Vodafone was able to double capacity at a 5G cell site by using VMware’s RAN Intelligent Controller, or RIC platform, to support open RAN components. This represents a much less costly way to increase capacity than linear upgrades of traditional network equipment.
As the pace of network innovation accelerates, so too will demand for applications enabled by the RIC. These are typically called rApps. Operators can take advantage of rApps even before they fully commit to open RAN, because the RIC provides the necessary abstraction, removing the challenge of having to directly integrate applications with the underlying data plane. This removes a major hurdle to the adoption of new applications that operators can potentially monetize.
VMware’s near-real-time RIC supports both virtualized and traditional RAN, allowing operators to introduce rApps now. This enables MNOs to start their network monetization journey, allowing them to work with creative developers, test new services in certain geographies or industry verticals, and start training engineers to understand more about network programmability. A centralized RIC makes economic and technical sense for today’s network operators and is the first step to an open radio access network.
Open RAN deployments, tests and trials to date have demonstrated that this technology is reliable, secure and cost-effective. Moreover, open RAN has the potential to help operators finally realize the promise of 5G, by monetizing their networks and winning new enterprise business.