What Growth Opportunities Are Arising in the 5G Open and Virtual RAN Space?

Disruptive technologies and evolving customer needs drive transformational growth

The fifth generation (5G) of wireless technology has arrived and is being rolled out globally. 5G is possible because of the contributions of previous generations of wireless communications and several disruptive technologies, each of which must be understood at least at a high level to paint a full picture of the industry. This analysis centers on open and virtual radio access network (RAN); while this subject impacts all generations of cellular technologies, the primary focus will remain on 5G. A communication service provider (CSP) network requires many RANs to cover a city, state, or region compared to a relatively few core networks. Prior to the open and virtual RAN movement, 5 global suppliers (Ericsson, Huawei, Nokia, Samsung, and ZTE) accounted for more than 90% of the RAN industry. Frost & Sullivan estimates that CSPs in 2021 invested nearly $60 billion in their mobile and wireless network infrastructure, on public networks of all generations. The majority of that spend was on the RAN, with a smaller spend on the transport and core networks. Historically, the network infrastructure industry has grown at a low, single-digit rate. With the transition to 5G, the growth rate has been higher but is beginning to return to historical norms.

  • How does the need for extensive radio access network (RAN) deployments impact communication service provider (CSP) network strategies?
  • How are pricing pressures and innovation shaping cost strategies for CSPs in O-RAN networks?
  • What innovations are emerging from O-RAN Alliance architectural changes built on 3GPP standards?

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