Technology News
Investment Trends in Open RAN Technology Deployment
12 August 2024
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Zaker Adham
A map from the O-RAN ALLIANCE, which monitors trials and deployments of O-RAN technology, shows 16 commercial deployments of Open RAN infrastructure by telecom operators so far.
Despite a slowdown in deployment, mobile operators continue to invest in Open RAN technology.
Vodafone
Vodafone has activated the UK’s first 5G Open RAN site in Bath, Somerset, and plans to establish 2,500 5G Open RAN sites across Europe. Johan Wibergh, Vodafone's Chief Technology Officer, stated, “Open RAN is driving network innovation. By combining the best hardware and software from various vendors, we can introduce new features and updates faster across sites.” Vodafone aims to accelerate its Open RAN roll-out this year, benefiting customers in Europe and Africa.
EchoStar
EchoStar has launched the Open RAN Center for Integration and Deployment (ORCID) at its Cheyenne, Wyoming data center. This Open RAN testing and evaluation lab is supported by a $50 million grant from the U.S. Department of Commerce’s National Telecommunications and Information Administration (NTIA) Public Wireless Supply Chain Innovation Fund.
O2 Telefonica
O2 Telefonica has begun deploying Cloud RAN, supporting 5G Standalone (SA), in Offenbach, Germany, marking the first deployment of Ericsson Cloud RAN in Europe. Mallik Rao, Chief Technology & Information Officer, emphasized the importance of cloud transformation for a flexible, automated, high-performance network. O2 Telefonica also launched its first virtualized RAN (vRAN) and Open RAN commercial site in Germany, using Samsung’s 5G vRAN solution.
Bharti Airtel
Bharti Airtel, a leading telecom operator in India, plans to deploy 10,000 Open RAN cell sites in rural areas. Airtel has partnered with US-based Mavenir to deploy Open RAN in its 4G and 5G sites, initially targeting 2,500 sites and gradually scaling up to 10,000.
Vodafone Idea
Vodafone Idea is in the advanced commercial phase of an Open RAN network pilot deployment in India. The deployment covers key launch sites and is currently carrying live commercial traffic ahead of a planned large-scale deployment.
TELUS
TELUS, a Canadian telecom operator, is building Canada’s first commercial virtualized and open radio access network (RAN) to enhance performance, flexibility, energy efficiency, and automation. TELUS is collaborating with Samsung Electronics, Wind River, Hewlett Packard Enterprise, and Intel for this project.
AT&T
AT&T aims to power 70% of its wireless network traffic through open-capable platforms by late 2026. The company expects to have fully integrated Open RAN sites operating with Ericsson and Fujitsu starting in 2024. Chris Sambar, Executive Vice President of AT&T Network, stated, “We will open up radio access networks, drive innovation, spur competition, and connect more Americans with 5G and fiber.”
Verizon
Verizon has completed Open RAN conformance and interoperability testing for commercial-grade LTE and 5G NR radios. The tests, conducted in Samsung’s lab in Dallas, Texas, included various Samsung radios compliant with O-RAN specifications.
Vendor Perspectives
Ericsson highlights that Open RAN provides operators with enhanced flexibility, scalability, reduced costs, increased efficiency, and improved service quality. Nokia’s AirScale baseband products are Open RAN compliant, supporting higher cell capacity and reducing power consumption.
Market Forecast
According to Juniper Research, investment in Open Radio Access Networks by operators is expected to rise to $11 billion by 2029, up from $2 billion in 2024. This is part of a broader investment in AI network automation, projected to reach nearly $40 billion by 2029. Mobile operators are expected to invest over $30 billion in Open RAN networks by 2030, with accelerated growth from 2025 onwards.
Dell’Oro Group forecasts that open RAN, Cloud RAN, and multi-vendor RAN will account for significant portions of the total RAN market by 2028. Open RAN revenue is projected to comprise 30-40% of revenues in China, with North America leading the broader Open RAN movement.