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NEC Five Reasons To Adopt Open RAN Now Whitepaper
NEC Five Reasons To Adopt Open RAN Now Whitepaper
In this paper, we provide 5 reasons why operators and vendors should adopt
Open RAN today. These arguments are provided in full recognition of the current
state of Open RAN including experiences with initial trials and deployments and
the work that continues to be done on meeting cost, security, performance and
energy efficiency goals.
Open RAN has the potential to not only transform both operators and vendors,
and thereby the mobile industry, but also to enable new industries that have yet
to be conceived thanks to the disaggregation of networks and open interfaces
enabling a broader community of specialist, innovative vendors to contribute and
collaborate. The time to get engaged is now.
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The state of 5G Open RAN
Open architecture in telecoms is launched or actively testing, Enlightenment, and Plateau of
not a particularly new concept. planning or designing an Open Productivity. By now, Open RAN is
However, attention started to RAN network launch.While there mature enough that we can
increase around Open RAN in the are a number of high-profile, conclude it’s globally transformative.
mid-2010s, driven by cost-related marquee plans and deployments, Open RAN is here to stay, it already
driving forces - the enormous, but the interest is global and survived the peak of inflated
predictable, costs of 5G widespread – touching all regions expectations and outgrew most of
deployments. In parallel, in developed as well as developing the initial, below-mentioned early-
consolidation of the equipment countries. Asia leads with about stage challenges. Open RAN is now
vendor market also reached a new one-third of the commercial in the slope of enlightenment:
level: by 2019, the combined deployments and plans, followed Operators are currently making
market share of the top three by Europe (20%). The remaining enormous investments, building test
biggest equipment vendors activity is spread roughly evenly labs and sites, and committing
reached 64% in the global network across the globe. themselves to adopt Open RAN all
market. In 2018, politics and over the world.
Disaggregating and aggregating a
vendor bans brought a new Open
complex value chain necessarily Adopting new technologies is
RAN driver to the surface. Many
includes a certain amount of risks always a challenge and Open RAN
operators wanted to get rid of the
and extra costs. Beyond the is no different. Many operators are
duopoly market structure, secure
technical challenges, there are also building partnerships, accelerating
vendor diversity and in general:
organizational, process and cultural knowledge, developing Open RAN
reduce their vulnerability and
challenges that require time, effort capabilities. Those, who are left out
improve their negotiating position
and resources to overcome. Lower of the Open RAN development,
in the 5G era.
efficiency, structural issues, system can miss out on the opportunity
The combination of these factors integration and security were areas and later suffer from long-lasting
catalysed the interest and where challenges could appear in competitive disadvantages.
accelerated the Open RAN test and the begining.
Despite barriers and challenges,
commercial deployments.
According to the Gartner Hype the industry is moving forward and
GSMA Intelligence constantly Cycle theory, the maturity lifecycle while a number of reasons can be
monitors Open RAN commitments, of new technologies and proposed, we focus on 5 reasons
deployments and public innovations is divided into five that we believe are most important
announcements. As of January phases: Innovation Trigger, Peak of for operators to not only adopt
2023, GSMA Intelligence counted Inflated Expectations, Trough of Open RAN, but to do so today.
92 unique operators commercially Disillusionment, Slope of
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Networking operaons automaon 22% 16% 7% 35%
experiences rather than focusing on efficient and automated Service innovative solutions and services. It
cost reduction. Open RAN is also Management and Orchestration is in this context that specialist
supporting these goals by enabling (SMO). For example, the O-RAN vendors of innovative software
mobile operators to take advantage ALLIANCE definition of Near-Real- solutions can bring outsized value
of automation, cloud technologies Time and Non-Real-Time RAN to mobile operators.
and more agile processes. Intelligent Controllers (near-RT-RIC
Operators today see the benefit of
and non-RT-RIC respectively) and
5G is inspired by technologies and adopting Open RAN to facilitate the
O-Cloud. The RICs are essentially
concepts that require new necessary transformation of their
software hosting platforms that can
competencies that are not network and organization to meet
run automation applications
traditionally operator strengths. the new challenges and
developed by third-party specialists
Concepts like disaggregation, opportunities 5G presents. In
referred to as either rApps (non-real-
virtualization, cloud-based services addition, Open RAN, and the use of
time) or xApps (near-real-time). This
and software-defined management cloud, IP and x86 platforms, enables
allows an even broader ecosystem of
and orchestration. These are operators to merge their IT processes
specialist vendors to deliver
concepts familiar to enterprises, but with their RAN operational processes
innovative software solutions.
new to mobile operators, which is leveraging the same competencies
why operators need to transform The significance of the O-RAN and experience making it easier to
their networks to support these ALLIANCE intelligent controller recruit and retain skilled IT and
concepts, their operations to manage concept cannot be overstated. This operational employees. It also
their transformed networks and their is the first time that RAN enables a common approach to
organization to think in a new way intelligence is provided as an entity important topics, such as security,
about procurement, validation, completely separated from RAN where many solutions and processes
deployment and management. equipment and the RAN network can be streamlined across both IT
itself. It allows the management and and RAN operations. Open RAN
Open RAN has leveraged the
orchestration of the RAN to evolve enables the disruptive innovation of
knowledge of non-traditional
independently of the RAN network, the telecom industry and the
telecom vendors to deliver 4G and
which in turn enables AI and ML potential creation of entirely new
5G virtualized functions on COTS
mechanisms to be leveraged for industries that we have difficulties in
hardware, but have also gone a step
both RAN optimization as well as conceiving today.
further by addressing the need for
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Source: Telecom Infra Project
first fully virtualized Open RAN status of Open RAN solutions. operators, telecom vendors and
network in Europe. Operators are then in a position to new specialist vendors can
commit to resources necessary to collaborate and drive Open RAN
What is most impressive is the
conduct their own tests, trials and and the industry forward. The
success that both the TIP
even deployments. continued efforts and progress in
OpenRAN project and O-RAN
these organizations ensures that
ALLIANCE have demonstrated in While experiences with initial
operators and vendors remain
attracting a broad and diverse deployments and trials have
engaged and committed, which in
ecosystem of members that bring highlighted challenges, what should
turn attracts new specialist vendors
new competencies and expertise be recognized is that the Open
with non-telecom backgrounds to
that are important to 5G success. RAN community has succeeded in
contribute with their expertise and
The O-RAN ALLIANCE has over delivering viable solutions in a very
insight. This not only ensures that
330 members while the TIP short time-frame and established
Open RAN is here to stay, but also
OpenRAN project has over 650 an impressive ecosystem of
that it becomes the source for
participants. Over the last few vendors that are already
innovative solutions to new
years, both organizations have held contributing to innovative solutions
challenges as the mobile industry
several Plugfests, which have addressing the highlighted
expands into new markets.
proved critical in accelerating the challenges. This is establishing an
implementation as well as the inertia and momentum that can be
maturing of Open RAN solutions. difficult to resist.
The Plugfests are open with
The significance of industry
transparent reporting of results
organizations like O-RAN
that provide confidence and trust
ALLIANCE and TIP OpenRAN is
to operators as they report the true
that they provide a forum where
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For mMTC, the focus is on develop RICs leveraging the
adapting quickly to sudden Netcracker Open RAN Domain
changes in traffic patterns that can Automation solution, which
occur when a massive number of includes SMO and RIC capabilities
devices, such as Internet of Things aligned with O-RAN ALLIANCE
(IoT) sensors, are communicating specifications.
at the same time. The O-RAN
With Netcracker Open RAN
ALLIANCE has defined the
Domain Automation solution,
O-Cloud for cloud-based hosting
operators can automate all aspects
of Open RAN functions like O-CU
of RAN planning and design,
and O-DU functions. The O-Cloud
deployment, optimization and
can be hosted on one or several
assurance as they evolve from
data centers. Thanks to
traditional RAN to fully
virtualization and cloud-based
decomposed, cloudified and Open
hosting, it is possible to elastically
RAN. By combining hybrid RAN
scale capacity of RAN functions to
automation integrated with RIC
meet unexpected demands, as can
optimization and an extensive
occur in mMTC scenarios, but also
partner ecosystem, we are helping
in URLLC and eMBB cases.
operators to innovate faster.
The virtualization, cloudification
The SMO and RICs provide a
and disaggregation of 5G enables
unique framework, which is
a broad variety of service needs to
essential for realizing the vision of
be addressed simultaneously, but
5G. Established vendors and new
also leads to a complex, dynamic
entrants alike are adopting this
network with traffic patterns that
management framework. This is
can be difficult to predict. This
because SMO and RIC do not
calls for a new approach to
need to be confined to Open RAN.
managing and orchestrating
The concepts and solutions can
mobile networks that relies on
be used to manage any RAN,
intelligent, closed-loop control and
which enables all operators to
autonomous operations. The
benefit from SMO and RIC
O-RAN ALLIANCE has defined a
deplopyment independent of their
Service Management and
Open RAN priorities.
Orchestration (SMO) framework to
support this new intelligent Nevertheless, it is clear that to
approach enabled by xApps and succeed with this approach, a
rApps hosted on near-real-time broad ecosystem of specialist
and non-real-time RAN Intelligent vendors is required as well as deep
Controllers (RICs). expertise in a range of
technologies including
NEC and its subsidiary Netcracker
virtualization, cloud-hosting and
have been at the forefront of
management, AI, ML and advanced
Open RAN developments from the
programming. It is only by
start, including SMO and RIC. NEC
establishing a broad and vibrant
and Netcracker were selected by
ecosystem of partners that
Rakuten Mobile in 2019 to
innovative solutions to new and
develop solutions for their
unforeseen challenges can be
Japanese Open RAN network. This
delivered as 5G opens new
included an NEC-Rakuten jointly
opportunities in new markets.
developed RU as well as end-to-
end BSS/OSS solutions. This was
followed by an agreement with
NTT DOCOMO in 2021 to jointly
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Figure 9: Which type of vendors do you plan to select to help you migrate to Open RAN Technology?
Other 1%
• Product development: each solution needs. O-RAN ALLIANCE Development Kit (SDK) for other
industry vertical will require specifications are also being xApps developers.
products that can solve specific adopted by ETSI with the release of
In addition, the ability to
challenges and use cases unique ETSI TS 103 859 in September
incorporate xApps and rApps for
to that vertical. This will require 2022 based on the O-RAN
network automation developed by
a broad ecosystem of potential ALLIANCE ‘O-RAN Fronthaul
specialist vendors as well as
solution providers with the Control, User and Synchronization
service applications running on 5G
necessary expertise and insight Plane Specification v7.02’.
Multi-Access Edge Compute
to develop the requiresd Agreements with standardization
(MEC) platforms enables operators
soltuions as well as a framework organizations provides another layer
to offer more than just
to support integration of their of maturity where specifications
connectivity. The 5G MEC can be
solutions quickly. now become standards.
instantiated at the RAN edge in
Open RAN provides the The OpenRAN project and the public 5G network or can be
frameworks and interfaces along O-RAN ALLIANCE OSC have also part of a private 5G network
with detailed specifications to been successful in attracting controlled by the enterprise.
enable operators to address both innovative startups who see a
The capabilities provided by Open
of these challenges. commercial opportunity in
RAN are vitally important in
developing xApps and rApps for
Open RAN initiatives like TIP meeting the diverse needs of
5G. Both OpenRAN and the
OpenRAN and the O-RAN enterprises, which are an
O-RAN ALLIANCE OSC have
ALLIANCE are now mature with important target segment for
released open-source
large ecosystems of vendors with mobile operators. Enterprises
implementations of O-RAN
diverse competencies and expertise. encompasses many industry
ALLIANCE specifications, which
This, together with the ability of verticals including finance,
have then formed the basis for
Open RAN architectures and manufacturing and utilities, each
additional work by other open-
interfaces to integrate new with their own particular
source initiatives. For example,
solutions and vendors relatively technologies, architectures and
the SD-RAN project of Open
quickly, provides a solid foundation vendor ecosystems. In the past,
Networking Foundation, which is
on which to approach enterprise mobile operators struggled to
implementing a near-real-time
customers who normally would not provide bespoke solutions that
RIC together with xApps to
turn to operators to fulfil their could meet the specific needs of
control the RAN and a Software
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Reason 5:
Building the foundation for 6G
While 5G is the current focus, capability. The driver for even with the physical world. This is the
discussions have already begun on higher speeds and lower latency next step beyond AR/VR/XR and is
“Beyond 5G” and 6G requirements. are what are termed “cyber- related to the metaverse vision.
Many vendors have already shared physical” systems. Cyber-physical Enabling this vision requires
their visions for a 6G future, while systems have traditionally referred unlimited wireless connectivity and
calculations have already been to systems where physical and extremely low latencies, which are
made on what could be delivered compute components are deeply the initial goals of 6G.
by a 6G mobile network that could intertwined. Lately, they have been
The unique capabilities of the
be available as early as 2030. the focus of Industry 4.0 smart
Open RAN SMO and intelligent
manufacturing initiatives where
While it is still unclear what 6G will controllers as well as their ability to
closed-loop control is enabled by
actually include, some of the goals host a broad ecosystem of
analysis of data from IoT sensors
already shared are a 1,000 times specialist software solution vendors
throughout the factory. In the
improvement in both speed and is potentially the only viable
context of 6G, the cyber-physical
latency based on current foundation for meeting 6G
vision refers to deep immersion
extrapolations of technical requirements.
and integration of the cyber world
Cy
y
6G
vit
ber
ed Connec
10
ds
-Physical Imme
x Lo
her Spee
wer Latenc
x Hig
t
10
i
ies
lim
n
r
U
s
2x
Spe cy i on
ctral E ffi cie n
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Start your Open RAN journey with NEC
NEC has been a pioneer of Open Opportunities are no longer a
RAN from the beginning. While NEC “winner-takes-all” approach, but
provides a complete portfolio of instead a “where-can-I-add-value”
Open RAN solutions, NEC collaborative effort in ensuring
recognizes the need for a broad, operator success. This is in
diverse ecosystem of vendors and an recognition of the fact that the role
operator’s need to choose the best of the operators is changing where
available equipment and software large cloud, data-center and
solutions for their specific needs. enterprise vendors, not to mention
vertical industry vendors, all have a
5G and Open RAN are elements of
role to play in meeting emerging
the digital transformation journey
consumer, enterprise and
for operators and mobile
government needs.
infrastructure vendors.
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