OpenRAN enthusiasm spreads to Turkey

Mavenir has announced Turkcell as its latest customer, with the pair planning to deploy OpenRAN vRAN technologies in the telcos domestic market.

As part of the agreement, Mavenir’s Virtual RAN solution will be deployed on Turkcell Telco Cloud and it will be first workload that will be going live on Turkcell Edge Cloud. Mavenir claims this vRAN architecture and platform can support 4G as well as both the NSA and SA implementations of 5G NR.

“At Turkcell, we have reached more than 60% virtualization in our mobile core network. We already take great advantage of what virtualization has to offer and are willing to extend the benefits of virtualization coupled with OpenRAN for the next step in Turkcell’s Radio Access Network evolution,” said Gediz Sezgin, Turkcell CTO.

“With its broad experience and expertise in RAN technologies and Network Virtualization, Turkcell will make great contribution for innovation on open vRAN towards 5G era. We are excited to take on and lead this journey.”

Turkcell becomes the latest in a string of companies seeking to drive forward with the OpenRAN technologies, though it is not entirely clear how scaled the deployment will be. There are of course interesting promises being made by the OpenRAN community, though few telcos would be prepared to invest comprehensively during these embryonic stages of development.

To understand where OpenRAN might gain the most traction it would probably be best to look at the regions with the lowest ARPU. Turkey is an interesting market, as according to data from Cable.co.uk, the average price of GB on mobile tariffs is as low as $2.25. This is certainly not as low as some other markets, though it starts to get tricky to drive ROI when data tariffs are below global averages.

The promise of OpenRAN is to commoditise the hardware components of the radio access network, which will allow hardware and software to be decoupled. This should, in theory, reduce the cost of radio deployment and remove any vendor lock-in threats which may still persist. This is an attractive idea for companies who need to rebalance the expenditure/profitability equation.

For the moment it is difficult to see what the long-term position of OpenRAN in the vendor mix will actually be. It is not resilient enough a technology just yet for scaled deployments, though some have suggested enthusiasm for trials is a stick to beat traditional vendors down on price.

In the markets where ROI is disastrously difficult to realise, OpenRAN will certainly play a role in the future, as it will probably in rural regions. Though it does remain to be seen how much of a dent OpenRAN will put into the fortunes of the traditional RAN vendors.

Mavenir looks to cash in on US xenophobia

At times, US anti-China rhetoric flirts with the line between protectionist and xenophobic, but that won’t bother the likes of Mavenir as it touts its All-American credentials.

It what appears to be a relatively unprompted submission, Mavenir lawyers have filed documents with the Federal Communications Commission (FCC) stating the firm is as patriotically-US as apple pie, watery lager, high-powered rifles and gas-guzzling jeeps.

The objective here is quite clear; the US political administration does not like China, is prepared to spend big to supercharge an alternative telco vendor to the likes of Huawei or ZTE, and Mavenir wants to get rich as the establishment attempts to drown the success of China’s technology industry under the patronising veil of national security.

It is opportunism at its finest.

“Mavenir noted that it is the industry’s only US-owned, US-headquartered, end-to-end network software provider delivering OpenRAN and virtualized networks,” the filing states.

There are of course other companies who could be deemed American, though it appears they have their own faults. Parallel Wireless, for example, is headquartered in New England, is funded by Californian moneymen, but some of its founders are Indian. It almost ticked all the boxes!

Although it is an unusual strategy from Mavenir, it might work.

US politicians might be losing the political battle to extend its anti-China rhetoric throughout the world but presenting a genuine alternative might be one way to aid this propaganda campaign. An alternative which is also driving forward the attractive OpenRAN technology to add a cherry on top.

While it might still be a technology in its infancy, OpenRAN is capturing the hearts and minds of those who want to force through disruption in the RAN ecosystem. The Nokia/Ericsson/Huawei cartel does not present a significant amount of competition, which OpenRAN could help with, while it could also make the economics of 5G network deployment more attractive.

There are a few initiatives which are progressing around the world. Rakuten is deploying a fully virtualised network with the OpenRAN community at the heart. Admittedly it doesn’t have to worry about legacy technologies muddying the waters, but Vodafone, MTN, Telefonica and Etisalat are attempting to blend OpenRAN into a more traditional network work environment, with legacy complications and all.

Earlier this month, the Democrat Senator for Virginia Mark Warner introduced a new bill to Congress. The Utilizing Strategic Allied (USA) Telecommunications Act will aim to provide $1 billion to create Western-based alternatives to Chinese equipment providers Huawei and ZTE. This is the prize the Mavenir gold-diggers are chasing.

And to sweeten the deal, Mavenir has also suggested it is able to help the poor rural providers dig out the dangerous technology from naughty Huawei and ZTE. We suspect it will all be done for a patriotically attractive price, or at least attractive to the Mavenir swashbucklers.

This is what some might call underhanded PR, a tactic which is more at home on ‘The Thick of It’ than the telecommunications slugfest. But it is an excellent of opportunism, which will probably be successful for the All-American vendor.

What are Boris Johnson’s alternatives to Huawei?

Telecoms.com periodically invites expert third parties to share their views on the industry’s most pressing issues. In this piece John Baker, SVP of Business Development at Mavenir argues that OpenRAN must signal the start of a new cycle for infrastructure vendor market.

For many years now, the telco infrastructure market has been dominated by just three vendors – Huawei, Nokia and Ericsson.  Other firms have fallen by the wayside, unable to compete on price or move fast enough to keep up with changes in technology.

Of course, the mobile ecosystem has always encouraged innovative players to develop new solutions and there are plenty of companies supplying the operator community with specialist network products and services. Having said that, there is no doubt that the operator choices for its end to end Network infrastructure vendor have reduced over the last 10 years.

Now one of those three Network vendors, Huawei, is facing a geopolitical and commercial storm itself. The US government has turned against it for its 5G infrastructure and is putting pressure on other NATO countries to do the same – causing Britain’s PM Boris Johnson to cry out ‘but what are the alternatives?’

Whatever the truth of the matter or the motive for raising it, US fears about hidden spyware or an over-reliance on the technology from a vendor thought to be controlled by a ‘competing nation’ is causing a major market stir and threatening to exclude Huawei from operator tender lists across the USA and Europe.

Commercially, this can be portrayed as good news for Nokia and Ericsson, but it is not quite that straightforward.  Firstly, a reduction to just two vendor choices cannot be good for the market. Secondly, all this is happening at the same time as the technology is rapidly evolving, creating new ways of building networks and delivering services.

Operators concerned about their dwindling source of options for network  infrastructure – and already frustrated by the feeling of being trapped into ‘vendor lock-in’ of hardware-centric solutions – are therefore increasingly attracted to the commercial and technical opportunities of virtualization; and especially to the new breed of vendors emerging with software-centric  solutions.

What’s more there’s a general feeling that the traditional vendors, after naturally taking a protectionist stance to the hardware model that underpins their businesses, are no longer at the leading edge of the technology when it comes to the software-led world of virtualized networks. Ericsson, for example, has so far shied away from embracing OpenRAN – an initiative that allows networks to be built using off-the-shelf servers rather than proprietary boxes.

The OpenRAN initiative is at the heart of the Facebook-led Telecom Infrastructure Project (TIP) looking to bridge the digital divide by lowering the cost of mobile network deployment. It’s also been welcomed by Vodafone, as evidenced by the RFP it has issued looking to convert its entire European footprint to an OpenRAN model.

Late last year, analyst Stephane Teral at IHS Markits cited my own company, Mavenir, as being best placed to become the new third choice vendor in the market.  But this revolution in supply is not just about adding one or two new vendors to the supply chain to answer Boris Johnson’s plea.

It’s about the creation of a truly new infrastructure market model.  One where open interfaces, software-led, cloud-based network architectures with end-to-end automation become the new normal.  It’s a wind of change bringing a new cycle in the infrastructure vendor market – giving operators more choice, lower costs, more service flexibility, and a faster return on network investment.

 

John Baker is the Senior Vice President of Business Development at Mavenir. A veteran of the mobile industry, board member for 5G Americas, and sought-after industry speaker, John Baker leads the 5G team at Mavenir, intent on disrupting the market by transforming operator network economics. A visionary and driving force behind Mavenir’s business strategy, John is at the forefront of the company’s drive to change operator views on wireless infrastructure deployment—promoting a software-focused approach to innovation, with no ties to supporting legacy hardware.

O2 joins the OpenRAN movement

O2 is the latest telco to join the increasingly popular OpenRAN cause, suggesting the technology could better serve customers in the hard to reach and heavily-populated areas.

Working with Mavenir, DenseAir and WaveMobile, O2 will aim to deploy the technology in dense urban environments, as well as the smaller, isolated rural communities. Like every telco, O2 is attempted to fine-tune the economics of network deployment as the realities of significant 5G investments start to rear their head.

“Connectivity is a lifeline for consumers and businesses alike and we’re committed to delivering the best possible network experience for our customers,” said O2 CTO, Brendan O’Reilly.

“O-RAN represents a really exciting opportunity to deliver better coverage, in more places, more of the time. By opening up our radio access network to smaller vendors, and as we look towards wider adoption of 5G, O-RAN will be part of the solution to bring the latest connectivity to more people around the country.”

The Mavenir segment of the project will focus on high-density environments in London. The objective will be to provide enhanced mobile connectivity and better customer experience in high-traffic areas such as stadiums and shopping centres.

“Densification of coverage in cities is a challenge but OpenRAN is ready to take it forward and Mavenir is proud to work with O2,” said Stefano Cantarelli, CMO of Mavenir.

O2 has said the WaveMobile OpenRAN technology is currently active on several sites across the UK including Woldingham in Surrey, and the solution could be used to provide connectivity services in ‘not spots’ in the future.

OpenRAN is increasingly looking like an attractive idea not only because of the technological benefits, but also the commercial. Firstly, opening-up the network to new suppliers will encourage innovation in new areas, and secondly, it puts pressure on current suppliers to negotiate more favourable terms with telcos.

Some might call it cynical, but there have been suggestions that Vodafone’s aggressive move towards OpenRAN is a ploy to gain the upper-hand during negotiations with the likes of Huawei, Ericsson and Nokia. These traditional suppliers will of course want to hold onto contracts, and prevent money heading towards the likes of Mavenir, Parallel Wireless and Altiostar. Success breeds success after all.

The more noise makes about OpenRAN as a realistic alternative to the status quo, the more nervous traditional RAN vendors will be. But this is not to say OpenRAN will not take its place in future networks on its own technological merit, it is just a factor which is worth bearing in mind.

Although O2 should certainly be categorised as an early adopter of the technology, there are other existing projects worth noting.

Rakuten will soon become the fourth mobile player in the Japanese market, with its network deployment driven by OpenRAN. Few have the luxury of a greenfield approach like this, but that has not stopped Vodafone deploying OpenRAN in the UK, DRC, Mozambique, South Africa or Turkey. Similarly, Etisalat in the UAE recently announced it was working with NEC, Cisco and Altiostar to deploy the open technology in its own networks.

And over in the US, various Senators and FCC Chairman Ajit Pai has been plugging the technology as an alternative for Huawei. Senator Mark Warner recently tabled a bill in Congress which would direct as much as $1 billion toward the OpenRAN community. It will not replace the traditional RAN ecosystem any time soon, but OpenRAN is here and here to stay.

O2 expects the commercial deployment of OpenRAN to accelerate over the next 18-24 months. This might be bad news for the traditional RAN vendors, but with Mobile World Congress kicking off in just over a month, there might be a few more announcements in the pipeline.

UK MP lets rip on Huawei as US Senator wants to fund ‘alternative’

Tom Tugendhat, the MP for Tonbridge and Malling, has become on of the few UK politicians to publicly state an opinion on Huawei, condemning the firm though tweets and interviews.

While the Supply Chain Review to decide the future of Huawei in the UK has been a highly publicised saga, few UK politicians have stepped-forward to add their own thoughts to the debate. Tugendhat seems to be breaking rank, risking a feud with Prime Minister Boris Johnson with his thoughts.

“Allowing Huawei to run the UK’s 5G network is a staggeringly bad idea. Nesting a dragon in our central nervous system will cost us for decades and leave us hostage to a hostile state,” Tugendhat said on Twitter.

As the Chairman of the Foreign Affairs Select Committee during the last Parliament, Tugendhat certainly is in an interesting position. He is an influential MP, though breaking the silence which has generally been upheld across the political arena, he might find retaining this prominent stance difficult. The statements made on Twitter, and also to Sky News, are somewhat contrary to the Prime Minister.

“Of course, you can individually guard every chicken, but isn’t it better not to let the fox into the hen house in the first place?” Tugendhat said.

This statement is directed toward the verification and validation work which is done by GCHQ in the Huawei Cyber Security Evaluation Centre (HCSEC). From Tugendhat’s perspective, the work to include Huawei’s equipment does not justify the outcome. There is some sanity to his thoughts, but the point of the HCSEC is to ensure telcos have access to be best technologies and an appropriate level of competition is maintained.

Tugendhat is one of the few taking to the soap box to weigh into the debate, though he does seem to be standing in opposition to Prime Minister Johnson.

“The British public deserve to have access to the best possible technology,” Johnson said on Tuesday (14 January). “If people oppose one brand or another, then they have to tell us what’s the alternative.”

Johnson does seem to be hinting he will side with Huawei and against the White House. The alternatives are few and far between, though the Democrat Senator for Virginia, Mark Warner, has introduced a new bill to Congress which could do so.

The Utilizing Strategic Allied (USA) Telecommunications Act, aims to provide $1 billion to create Western-based alternatives to Chinese equipment providers Huawei and ZTE. The idea has been raised before in the states, but an OpenRAN approach to network deployment would open-up the market to a flood of alternative, niche, solution providers. Or at least in theory.

“Every month that the U.S. does nothing, Huawei stands poised to become the cheapest, fastest, most ubiquitous global provider of 5G, while U.S. and Western companies and workers lose out on market share and jobs,” Warner said.

“It is imperative that Congress address the complex security and competitiveness challenges that Chinese-directed telecommunication companies pose.

“We need to move beyond observing the problem to providing alternatives for U.S. and foreign network operators.”

While this sounds like an attractive move for the ecosystem, realistically it is not an alternative for Huawei and ZTE.

The concept of OpenRAN is not new and it is only just gaining traction in the industry. Vodafone, MTN and Sprint are testing out new ideas, it is still not a viable, scaled alternative to the status quo. It would most likely take years of R&D to get OpenRAN to a point where it can be used as the foundation of a network.

Are the UK, Germany, Italy, Spain and the dozens of other countries who want to work with Huawei supposed to wait for this dream to become a reality? Warner’s idea sounds nice, but it is not an alternative because investments needs to be made today.

Vodafone drops OpenRAN bombshell

At the TIP Summit in Amsterdam Vodafone announced it was thinking of shifting all of its European mobile sites to OpenRAN technology

The thinking has got so far that is set to issue a 5G tender, which would involve up to 100,000 sites, for the work, according to Light Reading. The announcement was made live on stage by Yago Tenorio, Vodafone’s head of network strategy, on the opening morning of the latest TIP (Telecoms Infra Project) Summit.

“It is a really significant opportunity for OpenRAN to scale,” said Tenorio. “We are willing to swap out sites if we have to. The ambition is to have modern, up-to-date, lower-cost kit in every site. We are not announcing the results today because this just kicked off but stay tuned because it may be a significant acceleration of the open RAN ecosystem.”

The main point of OpenRAN is to loosen the stranglehold the big kit vendors have over the RAN market with their proprietary technology by commoditising it. Vodafone’s move coincides with the commencement of its European 5G roll-out and at a time when it remains unclear which vendors will be allowed to participate in which countries.

It looks like TIP itself is quite heavily involved in pushing OpenRAN, having issued a request for information to the equipment industry on how to build a 5G network based on it, that will run on other commoditized tech such as x86 servers and use open interfaces. Apparently none of the big three kit vendors responded to the request, but plenty of other companies did, with Samsung especially putting itself in a strong position, so it looks like this could really shake things up.

MTN adds credibility to the OpenRAN movement

MTN has announced it will be partnering with Parallel Wireless to deploy 5,000 OpenRAN sites across its network.

The Parallel Wireless OpenRAN solution will allow MTN to deliver 2G, 3G and 4G connectivity simultaneously, targeting areas which are currently unconnected.

“OpenRAN is certainly not new to MTN. Our Group Technology teams concluded field trials in Zambia in 2018, deploying commercial sites from the start of 2019,” said Dirk Karl, Chief Procurement Officer at MTN.

“Our team has steadily been focused on creating viable RAN solutions alongside the traditional deployments of network technology suppliers in order to accelerate the rural expansion in our markets.”

Although OpenRAN has certainly attracted some attention, it is yet to make a significant splash in the telco pond. Emerging from the Telecom Infra Project (TIP), OpenRAN is an initiative to define and build 2G, 3G and 4G RAN solutions based on a general-purpose vendor-neutral hardware and software-defined technology.

Speaking to Telecoms.com on the side-lines of AfricaCom, Christoph Fitih of Parallel Wireless highlighted that the deal provides some much-needed credibility to the OpenRAN movement.

This is the challenge when it comes to OpenRAN. Many telcos understand the value the technology can offer, though telcos are traditional organisations. Most are incredibly risk-adverse, especially the smaller telcos, arguably the ones who will gain the most from OpenRAN. New ideas scare the telco industry.

From Fitih’s perspective, MTN’s confidence in OpenRAN validates the technology. Incorporating OpenRAN into its network should spark an interest in the minds of competitors, offering the movement confidence.

Whether this proves to be the spark which ignites the OpenRAN fire remains to be seen, though a stamp of approval from one of Africa’s most prominent and influential telcos certainly provides some weighty credibility.

100% of telcos are investigating the promise of OpenRAN – survey

With monstrous investments on the horizon, it seems the telco community is keeping a close eye on the development of OpenRAN technologies.

While you always have to take survey results with a pinch of salt, Mavenir and Senza Fili are claiming momentum is gathering behind the Telecom Infra Project’s (TIP) OpenRAN initiative. 100% of the respondents to the survey suggested they were investigating the application of OpenRAN for one scenario or another.

What is worth noting, is that trialling and testing the technology is very different from commercial deployment, thought the results do perhaps suggest the industry is sick of the status quo and would welcome some sort of disruption to ease the financial burden.

68% of the respondents claim they or the wider business is exploring OpenRAN for densification demands, 47% pointed towards greenfield deployments in urban environments, 42% are looking to replace their incumbent suppliers and 5% are seeking validation in the rural areas.

Whatever the reason, the tier-one vendors in the network infrastructure segments should watch these developments with care.

Interestingly enough, the results of this survey are being touted at the same time as a Vodafone win for the OpenRAN initiative. The telco recently announced plans to trial OpenRAN deployments in 100+ rural locations across the UK. The reasoning behind this trial; to reduce the cost of network deployment and create new opportunities to work with alternative suppliers.

When you consider the majority of network deployment investment is geared towards the access network, you can start to see why a lack of competition is concerning telcos. Another factor to consider is the role of Huawei. If the US Government gets its way, either bankrupting the Chinese vendor or getting it banned from markets, there is even less competition, enhancing the risk of increased prices.

However, those privileged vendors sitting comfortably at the top of the ecosystem might be given some relief. Firstly, these are only trials not commercial deployment. OpenRAN might be a nice idea, but telcos will be hard-pushed to replace a tried and tested solution; interest and signing cheques are two very different matters.

Secondly, the industry is still clearly concerned with how much of a valid alternative OpenRAN actually is. When looking at the barriers, 28% are worried the performance won’t match the status quo, while 14% are focused on interoperability and 11% on maturity. It isn’t clear whether this is maturity of the technology or the new vendors entering the ecosystem, but both would be a concern for anyone handing over vast sums of cash.

OpenRAN does seem to be gathering pace, and while there is still a lot to prove when it comes to overhauling proven relationships and suppliers, the quest for more efficient investments is clear to see.

Vodafone searches for supply chain rejig through OpenRAN

Vodafone has announced it will introduce OpenRAN technology in various parts of its UK network, as well as the Democratic Republic of Congo (DRC) and Mozambique.

In what appears to be an effort to break down barriers to work with new vendors, Vodafone will seek to empower the ecosystem through the introduction of commoditised hardware. This is the first trial of the technology in a ‘developed’ market, leaning on trials which have taken place in Turkey and South Africa.

“We are pleased with trials of OpenRAN and are ready to fast track it into Europe as we seek to actively expand our vendor ecosystem,” said Vodafone CEO Nick Read.

“OpenRAN improves the network economics enabling us to reach more people in rural communities and that supports our goal to build digital societies in which no-one is left behind.”

Launched through the Telecom Infra Project (TIP), the OpenRAN initiative aims to build 2G, 3G and 4G RAN solutions based on a general-purpose vendor-neutral hardware and software-defined technology. With vendor-neutral hardware hitting the networks, the aim is to reduce reliance on a small number of vendors, de-couple the hardware and software components of the network more stringently and reduce the vast expenditure made on network infrastructure.

The UK trial will focus on rural locations, perhaps to reduce the exposure of failure. These are also the cell sites which will cost the most and offer the smallest profits. There is a lot to gain here, while the consequence of failure will be limited.

“Encouraging the emergence of new suppliers would give operators greater choice in a far healthier ecosystem,” said Kester Mann of CCS Insight. “Disrupting the status quo could, in particular, make the economics of network deployment stack up in rural areas or hard-to-reach locations, for which roll-out may not currently be viable or cost effective.

“Improving network economics and better monetising infrastructure assets is an important focus of Vodafone CEO Nick Read as the company seeks to achieve ambitious cost-saving targets.”

Like many of the worlds’ telcos, Vodafone is slowing stumbling towards a tricky situation with its supply chain, though many of the issues are outside the control of the company. With Huawei under increasing pressure, the future does look glum for a segment of the ecosystem which is already under-populated.

However, the telcos are not completely blameless in this situation. Investments have been concentrated with the three major vendors in this space (Huawei, Ericsson and Nokia). Through prioritising these companies as primary vendors, challengers have not been given the opportunity to scale and compete. Another complaint levelled at the telcos has been a comprehensive and convoluted procurement process, which has inhibited the ability of smaller players to compete against the status quo.

When the industry is running smoothly, few would have complained with the concentration of investment to a small number of vendors, but there are wrenches being thrown into the works all over the place.

With Huawei potentially facing bans in numerous countries and its supply chain being compromised thanks to the entry onto the US Entity List, a major vendor is under threat. Although Huawei has confirmed it is producing products free of US components, the performance of this equipment is unknown for the moment. Worst-case scenario, the vendor community could become a lot smaller.

Vodafone is one company which does look to be exposed to the Huawei conundrum. UK CTO Scott Petty has said banning Huawei would set the company back two years in its quest for 5G, costing millions as the company would be forced to strip the vendors equipment out of its network. Huawei equipment currently accounts for 32% of the 18,000 base stations around the country, though it has plans to strip Nokia equipment out, with Ericsson taking the rest.

Only working with two suppliers is a precarious situation, though this is compounded when you look at the difficulties Huawei is facing. The introduction of OpenRAN might be considered a bold move, but it is starting to look very necessary to enable access to more vendors.

The trials in the UK, DRC and Mozambique will focus on mobile calls and data services across 2G, 3G and 4G, with 5G possible over OpenRAN in the future. OpenRAN could be debuted elsewhere across Europe dependent on the success of the trials in the UK.

The team have currently identified 100+ rural locations to trial the technology, though this could be expanded in the future. Vodafone has said OpenRAN could reduce network hardware costs by up to a third, but this is dependent on how the technology and supplier ecosystem develops over time. Mavenir, Parallell Wireless and Lime Microsystems are three new suppliers enabled by the trials, though there are a huge number of start-ups who are connected to TIP.

Although this is a small trial for the moment, it is certainly one worth keeping an eye on. Vodafone is in a slightly tricky position when it comes to its supply chain, though should OpenRAN prove to be successful, numerous options could be opened-up. It is a low risk gamble, though the gains of a new supply chain certainly outweigh the consequence of failure.