The TCO Benefits of OpenRAN and how moving the core to the edge enables 5G low latency services and a profitable business plan. Presentation from 5G Business Summit 2019.
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Mavenir: OpenRAN: The Infrastructure Hump and 5G Network Economics
1. Mavenir OpenRAN
and 5G Network Economics June 2019
OPENRAN
THE INFRASTRUCTURE HUMP AND
5G Network Economics
John Baker
SVP Business Development
Jun 25th 2019
2. World’s First OpenRAN Installation
Mavenir OpenRAN
and 5G Network Economics June 2019
3. 3
The First “OpenRAN” Deployments are now underway
OpenRAN is more than virtualized RAN
4. Drivers for OpenRAN
• Dependence…on walled garden suppliers
• Frustration…around the ability to change
• Achievable…Open standards for RAN
• Formation…OpenRAN ecosystem
• Not a revolution – need Carrier adoption
• Hard decisions and risk taking
Operators need to start now or face the consequences
Mavenir OpenRAN
and 5G Network Economics June 2019 4
5. Addressing 5G OpenRAN Challenges
Bits/sec/hertz/$ - New TCO Business Models, Cost and Resiliency
Virtualization - All Elements Virtualized except the Radio
Open Source – Processes and platforms
Open Interfaces – Resistance to Vendor Lock in
Low cost RRUs – Merchant Chipsets replacing proprietary design
New Suppliers - Open, Multivendor, enlarged supply chain
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and 5G Network Economics June 2019 5
6. OpenRAN
“Open InterfaceApplications"
on
"Open Market Hardware"
Anything else is considered proprietary
Major Ecosystem Influencers include:
Facebook, TIP, OpenCompute, O-RAN
Mavenir OpenRAN
and 5G Network Economics June 2019 6
vRAN is an
Application
7. The Big Picture – OpenRAN
•Don’t miss the big picture
• OpenRAN – Not just virtualized RAN
• Derived TCO benefits from OpenRAN
• 5G is OpenRAN
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and 5G Network Economics June 2019 7
vRAN
8. TCO Benefits of OpenRAN
Mavenir OpenRAN
and 5G Network Economics June 2019 8
Vendor lock in:
Possible to run multi vRAN applications
Possible change vendor overnight
Run multiple applications on the DU
DU Application store
KPI management as an Application
Minimize RAN inventory
Lower maintenance and support cost
Single Test for RAN nodes
Eliminate operator Lab testing
Merchant Chip Sets to replace proprietary designs
9. “OpenRAN Radio”
• Cost reduction to drive densification
• O-Ran enables a fully specified radio
• Chipsets define internal interfaces
• Common OpenRAN part numbers
• ODM’s realize global volume
• Single test house approval
2008
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and 5G Network Economics June 2019 9
2018
3sectorD-RANOpenRan
10. The 5G Problem
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and 5G Network Economics June 2019 10
• Payback for Europe not expected until 2026.
• For 5G, low latency is a key differentiator from 4G LTE
• 5G NR in the same spectrum bands is similar to LTE
• But low latency connectivity is only enabled by 5G
– 5G revenue-generating apps & services will have to utilize low latency to show value.
• 10 % of a wide-area build, the costs will reduce by 90 percent compared to thewire-area
network.
• The business case that works is to initially only build 5G OpenRAN ‘hotspots’ where forlow
latency to provide value-added services.
“5G OpenRAN hotspot deployment is the business case that works for 5G”
Source:- Mavenir whitepaper A real 5G Business Case that works: 5G Hotspots.iGR
11. Home
Stadium
Class ACommercial
Manufacturing and Transportation
4G Macrocell
Autonomous
Vehicle
Healthcare
Drone
Emergency Services
Cars
Public
Transportation
Autonomous
Vehicle
Aircraft
Drone
Utilities
Manufacturing
Robot
Autonomous
Vehicle
5G “Hotspots”
5GmmWave
Small Cell
4G Macrocell
Source: iGR & Mavenir
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and 5G Network Economics June 2019 11
12. Summary
• Operators need to start now or face the consequences
• Open standards and interfaces are achievable
• OpenRAN ecosystem in formation
• OpenRAN is Not a revolution – need Carrier adoption
• OpenRAN TCO – computed across whole business
• Moving the core to the edge enables 5G low latency services and a
profitable business plan.
With 4G & 5G Industry is about to see significant transformation
Mavenir OpenRAN
and 5G Network Economics June 2019 12