Home > Communication Service Provider Solutions > Enabling Telecom Transformation > Network-Based Energy Saving Opportunities in RAN for Improved TCO > Traditional RAN model
Network operators need to put in significant upfront investment to implement a traditional RAN network. The high cost barrier is due partly to the substantial cost of developing complex E2E systems, and partly to closed architectures that do not allow for competition. Currently a small handful of network equipment providers determine the design of network infrastructure. Nevertheless, network operators are realizing that proprietary hardware and monolithic architectures have limited flexibility and, along with the obvious disadvantage of long-term vendor lock-in, ultimately contribute to higher operator CapEx and OpEx. There is a growing industry-wide movement towards newer alternatives that provide open approaches or interfaces to achieve savings, including, where feasible, network infrastructure virtualization. O-RAN facilitates this evolution.
Traditional RAN vendors design and manufacture proprietary hardware for base stations and radio units. Such hardware is often vendor-specific and may not be interoperable with other vendors’ equipment, and is therefore not “open.” Closed ecosystems limit network operator flexibility; they are not only locked in to the vendor for the lifetime of the network equipment and deployments, they may also be limited in the ability to customize the network operation adaptively to satisfy their prioritized Key Performance Indicators (KPIs). A multi-vendor environment and interoperability testing provides for flexible configurations coupled with an opportunity to adapt to changes that meet the operator’s requirements and customer-driven expectations throughout the life of the network.
While it is undeniable that the complexity of the mobile telecommunications network has historically required substantial investment into the development and implementation of purpose-built intellectual property, the closed ecosystem has also stifled innovation. Therefore, it is by democratizing the interfaces through standardization, enhancing information flow between layers, and leveraging modern tools that the industry will move toward open software-driven approaches and interoperable hardware.