Home > Communication Service Provider Solutions > Enabling Telecom Transformation > RAN Pooling - The case for RAN pooling with Cloud/Virtualized RAN > Reduced TCO with C-RAN pooling
While RAN densification is a 5G/RAN deployment cost accelerator, RAN cloudification is a RAN cost optimizer. As per GSMA [2], Figure 6 shows the cost dynamics for a full-scale deployment case using a 4G reference case, a 5G baseline (traditional D-RAN) case, and a 5G optimized case.
Cost optimization "levers" that can mitigate high costs of 5G rollout include infrastructure sharing; C-RAN; NG core with Software-Defined Networking (SDN), Network Function Virtualization (NFV), and Control and User Plane Separation (CUPS); Automation and AI; and use of Cloud and Open Source. RAN infrastructure (bottom block) has the second-highest 5G cost delta range (45-65%), linked to the extent of pooling, densification, and RAN virtualization. By implementing some or all of these key cost optimization levers, CSPs can reduce TCO by up to 32%.
Figure 7 shows the key drivers contributing to a CSP's TCO. The analysis that follows assumes that the installation, configuration, deployment, and life cycle management of the server or bare-metal infrastructure, the cloud infrastructure, and RAN NFs are fully automated.