Mobile operators set to invest over USD 30 Billion in open radio access networks by 2030
The move represents a CAGR of 24 per cent of the period, as per the latest report
Mobile operators are reportedly set to invest more than USD 30 billion in open radio access (RAN) networks worldwide by 2030.
The move represents a CAGR of 24 per cent of the period, as per the latest report. An open RAN is said to be made possible by a set of industry-wide standards which could be followed by telecom suppliers when they produce the related equipment.
Open RAN is a new way to build a 4G or 5G network for smart devices, which will reduce the total cost of deployment, enabling operational simplicity and increasing the velocity of the new features which are being rolled out with the concept of cloud that will effectively be used.
An Open RAN solution will further increase the flexibility and innovation in the network as well.
Open RAN networks have increased in recent years when it comes to investments.
It is driven primarily by greenfield network operators located in the Asia-Pacific and North American regions, as per the Counterpoint Research.
However, by following this period of rapid network build-outs, the greenfield operators have been looking to lower capex in 2023 and 2024 which will focus on network monetization.
Some Tier-1 operators, majorly Vodafone, have reportedly announced the major plans for deploying open RAN recently.
Most of the brownfield network operators will remain very cautious about the additional investments in the 5G infrastructure- majorly when it is run on Open RAN, which is due to the uncertain macroeconomic climate.
As a result, the Open RAN market will become steady during this (2023) and the next year (2024).
The report stated, “Investments will start to increase YoY after 2025 with network operators investing a cumulative total of more than $30 billion between 2022 and 2030.”