Vodafone is set to deploy OpenRAN equipment to at least 2600 of its mobile sites by 2027, helping the operator in its efforts to remove Huawei kit from its infrastructure and diversify its supply chain. The Radio Access Network (RAN) market has traditionally been dominated by a few major players offering highly integrated cell sites that include radio, hardware, and software. This approach made it difficult for operators to combine innovations and proved to be a significant barrier to entry for smaller providers. OpenRAN is a vendor-agnostic approach with standardized designs that allow various companies to deliver hardware and software. Operators believe it can increase innovation, lower costs and reduce reliance on the "big three" of Ericsson, Huawei and Nokia.
Vodafone OpenRAN
Vodafone has been a strong supporter of the technology and wants to be seen as a telecommunications leader for the OpenRAN community. It has already organized trials in several European countries and commissioned the UK's first live OpenRAN site in Wales earlier this year. He believes that plans to use OpenRAN at sites in the South West of England and Wales (excluding the Cardiff region) constitute the largest commercial commitment by an operator in the world. Plans are at an early stage and providers have yet to be identified, but Vodafone is adamant and willing to go beyond the 2.600 seats already reserved. The news is a big boost for the UK government, which wants to increase the number of RAN providers available in the UK after banning Huawei from participating in the 5G rollout. The law prohibits operators from buying new kit from the company from the end of 2020 and must retire any equipment installed on their networks by 2021. There have been moves to court the Japanese NEC, but support for OpenRAN is also a priority. Vodafone's OpenRAN implementation accounts for around 35% of Huawei's equipment it needs to replace, and the company will likely look to other vendors to fill the gap. For example, it is unlikely that OpenRAN will be used in cities in the near future, as the limitations of the current chipset mean that it is difficult to scale performance in urban environments. Analysts estimate that the market for OpenRAN technologies will reach €5 billion in five years, and it won't just be new players getting involved. Nokia and Ericsson have joined the O-RAN Alliance, one of RAN's many open organizations, which has a 170-member Alliance of Operators, Suppliers and Research Institutions. Earlier this year, the O-RAN Alliance partnered with the mobile industry body, the GSMA. Nokia also plans to integrate Open RAN interfaces and capabilities into its AirScale radio platform later this year.