Blog

The Open Transformation – Reshaping the Telecom Industry

Oct 31. 2024
  • Sanil Ramachandran, Director of Technology, Networks Business, Samsung Electronics America

    Sanil Ramachandran

    Director of Technology, Networks Business, Samsung Electronics America


A profound shift is underway in the world of telecommunications. Open Radio Access Networks (Open RAN) have emerged from an ambitious concept to a tangible reality, proving its worth in both live networks and field trials. This innovative network architecture is not just opening doors to unprecedented flexibility, efficiency, and innovation in our increasingly connected world – it’s poised for significant growth.

 

According to industry projections, the global Open RAN market is expected to grow from $2.8B in 2024 to $20.9B in 2030, a CAGR of nearly 40%. This remarkable growth trajectory underscores the increasing acceptance and integration of Open RAN within operator networks, painting a picture of a future where open, flexible, and efficient networks are the norm rather than the exception.

 

Yet, as with many new technologies, the path to widespread adoption is tempered. Decision-makers within network operator organizations approach this shift with a blend of excitement and careful consideration. This measured approach reflects not just caution but a commitment to ensuring that this technology is implemented in a way that maximizes its benefits while addressing concerns. This caution can be seen in a recent survey from Analysys Mason, which highlights some operators’ concerns:

 

  •  A significant 64% of operators cite security and privacy as critical challenges. The increased number of interfaces in a multi-vendor environment raises new security considerations that must be thoroughly addressed.
  • More than half of operators – 56% – point to integration as an obstacle. Ensuring various components from different vendors work harmoniously can be a complex and nuanced task.

 

Industry response to operators’ caution

 

The telecom industry is actively addressing these concerns through various initiatives. Standards entities and industry organizations are adopting best security practices tailored to the Open RAN environment. The O-RAN Alliance, a consortium of major telecom players, spearheads efforts to improve security through standardization initiatives. Their approach involves gradually introducing new security schemes, allowing vendors time to incorporate and support upcoming mandatory features.

 

To advance integration, major vendors and operators are conducting extensive interoperability testing to ensure seamless integration of multi-vendor components. In particular, Samsung completes thorough interoperability testing with its large ecosystem of partners, exceeding expectations from the diverse types of network requirements from customers.

Beyond these specific resolutions, the Open RAN ecosystem allows for overall network improvements and enhancements. Open RAN’s disaggregated nature allows for increased flexibility because of mix-and-match-style optionality that allows each operator to select the best of the best solutions to meet its unique network needs

 

In addition, the technology’s open interfaces make it easier to incorporate innovative functionality like artificial intelligence and machine learning – offering operators unprecedented control and insight into their networks.

 

Samsung: a trusted partner in the Open RAN revolution

 

Samsung remains at the forefront of Open RAN transformation, as a leader in both Open RAN development and deployment. The company’s trusted expertise in advancing Open RAN is evident through its continuous innovation and industry-leading efforts, particularly in its track record of deployments and partnerships:

 

  • Partnering with a U.S. Tier 1 operator to deploy one of the country’s largest virtualized RAN (vRAN) and Open RAN commercial networks.
  • Replacing legacy technology in the U.K. with virtualized Open RAN across thousands of sites, demonstrating large-scale deployment capabilities.
  • Deploying the world's first Standalone Open RAN site with vRAN in Japan, pushing the boundaries of network virtualization.
  • Delivering O-RAN compliant 5G radios in Japan, reinforcing commitment to open standards.
  • Standing up the first 5G vRAN and Open RAN greenfield deployment in the U.S., paving the way for next-generation services.
  • Partnering with Canada Tier 1 operator to build the country’s first 5G vRAN and Open RAN network, introducing Samsung’s O-RAN compliant automation solution.
  • Expanding its vRAN and Open RAN expansion with a Japan Tier 1 operator, leveraging the advantages of a fully disaggregated and software-based architecture.

 

In addition to its work with operators, Samsung's participation in the O-RAN Alliance Open Fronthaul Interface Working Group (WG4) cements its influential role in helping to shape the global Open RAN ecosystem. This participation allows Samsung to contribute directly to developing standards and best practices, ensuring that the evolution of Open RAN technology aligns with the needs of operators and end-users alike.

 

The future of telecom

 

As we look to the future, the quiet revolution of Open RAN is poised to become a roar. As Open RAN matures and addresses current challenges, it promises to unlock new realms of innovation, innovative chances for monetization, increased efficiencies, and flexibility in wireless networks.

 

In this industry-wide transformation, the winners will be not just the operators who embrace this new paradigm but also the end-users who will benefit from more robust, efficient, and innovative wireless services. The future of telecom is open, and it's soon to arrive.