5G technology has emerged as a beacon of innovation, promising unprecedented speed, reliability, and connectivity. It will usher in a new era of digital connectivity in various sectors, including healthcare, infrastructure, and education. China is a major player in the global 5G market and is spearheading the Digital Silk Road (DSR) initiative to export this technology to the world. This has raised concerns about China’s dominance in this fast-growing sector, making it imperative to explore adaptable and scalable solutions. Open Radio Access Networks (O-RAN) have emerged as a disruptive alternative that challenges traditional approaches. O-RAN essentially “opens up the protocols and interfaces between the various components (radio, hardware, and software)” of traditional radio access networks, which are a key component of wireless communication systems. This strategic shift to separate hardware and software components could lead to a more balanced and sustainable technology ecosystem.
O-RAN essentially “opens up the protocols and interfaces between the various components (radio, hardware and software)” in the traditional radio access network, a key component of wireless communication systems.
Connectivity components
Traditionally, telecom infrastructure has been dominated by proprietary hardware and software solutions tightly integrated into a monolithic architecture. While effective, this approach often leads to vendor lock-in, limited flexibility, and high deployment costs. Unlike traditional networks, where hardware and software are tightly integrated, O-RAN brings decentralization and enables interoperability between equipment from different vendors, making network architectures more flexible, innovative, and resilient. This modular architecture allows operators to mix and match components to optimize performance and deploy networks more efficiently. O-RAN consists of three main elements: Radio Unit (RU), Distributed Unit (DU), and Centralized Unit (CU).
Table 1: O-RAN Element Description
| Radio Unit (RU) | Distributed Unit (DU) | Central United (CU) |
| ● Radio transmission and reception ● Software ● Same provider | ● Baseband processing and network orchestration ● Hardware ● Potentially different providers | ● Baseband processing and network orchestration ● Hardware ● Potentially different providers |
sauce: Nokia
It is important to keep in mind that O-RAN and 5G are not competing technologies, but complementary frameworks. While 5G refers to the next generation of mobile networks, promising unprecedented speed, capacity, and connectivity, O-RAN focuses on the infrastructure that supports these advancements. In essence, O-RAN is an enabler of 5G, providing the flexible and scalable architecture needed to realize its full potential. By decoupling hardware and software, O-RAN facilitates rapid deployment of 5G networks, accelerating innovation cycles and reducing dependency on specific vendors. Moreover, O-RAN extends beyond 5G to benefit different generations of mobile technologies. Its principle of openness paves the way for future advancements, enabling networks to remain adaptable and resilient in the face of evolving requirements.
Tame a dragon?
5G networks use cloud technology that “simplifies mobility” with seamless open roaming capabilities between mobile and Wi-Fi access. These are primarily provided by Chinese companies such as Huawei and ZTE, which are leading the rollout of 5G infrastructure. Exports of telecommunications equipment through the Digital Silk Route, part of China’s Belt and Road Initiative, have increased Huawei’s global market share by 40%. In Africa, where it is building 70% of its networks, concerns are growing about security vulnerabilities and geopolitical implications. To counter Chinese monopolies, many countries, including Australia, Japan, the UK and the US, have banned Huawei’s operations, and India is phasing out the use of Huawei equipment in its 5G rollout. Fears of single points of failure and potential data breaches loom large, prompting the search for alternative solutions.
To counter China’s monopoly, many countries, including Australia, Japan, the UK and the US, have banned Huawei, and India is phasing out the use of Huawei equipment in its 5G rollout.
Given these concerns, the development of O-RAN can be seen as a response to the need for a new framework. By freeing itself from vendor lock-in and fostering a competitive ecosystem, O-RAN could provide a path to democratize access to 5G technology and alleviate concerns about Chinese dominance. Many countries recognize O-RAN’s potential to transform the telecom industry and are investing in its research and development.
Global trends
India, with a vast and rapidly growing mobile subscriber base, has recognised the strategic importance of O-RAN in modernising its telecom infrastructure and expanding connectivity. Leading telecom operators such as Reliance Jio and Bharti Airtel have been exploring O-RAN solutions to optimise network performance and meet the evolving demands of consumers and businesses. Additionally, initiatives such as the Telecom Regulatory Authority of India’s discussions on promoting domestic telecom equipment manufacturing are in line with the broader goal of driving O-RAN innovation and self-reliance in the telecom ecosystem.
In 2023, India and the US established a joint task force towards the development of O-RAN through a public-private partnership. Recognizing the strategic importance of countering Chinese dominance in 5G, the QUAD countries (US, India, Japan, Australia) announced a new cooperation initiative focused on O-RAN in May 2023. QUAD aims to strengthen resilience and security in the face of emerging threats through investments in O-RAN infrastructure among member states. They released an O-RAN Security Report, analyzing the advantages, disadvantages, and challenges of O-RAN compared to traditional RAN, concluding that “compared to traditional RAN, the use of O-RAN does not fundamentally change the communications security risk environment.” The report can be used to guide further investments and to understand the effectiveness of O-RAN as an alternative to 5G. To further the global deployment of O-RAN, the Quad is investing in Palau, which aims to strengthen digital connectivity in the South Pacific and reduce dependency on Chinese communications equipment. Other investments in O-RAN are shown in Table 2.
Table 2: Global O-RAN Initiatives
| country | Department/Company | goal |
| Germany | Deutsche Telekom and Vodafone | Invest in laboratories and work with industry partners and academic institutions to advance O-RAN standards and technologies |
| Japan | Rakuten Mobile | Leverage virtualization and cloud-native technologies to increase efficiency and scalability |
| South Korea | SK Telecom and KT Corporation | Conducting trials and pilot projects to assess the feasibility and benefits of O-RAN deployment |
| England | British Telecom Group and O2 (Telefonica UK) | Work with technology partners to pilot solutions and demonstrate their potential to improve network efficiency and service quality |
| Government – Department for Digital, Culture, Media and Sport | Diversification of the telecommunications supply chain | |
| united states of america | Multi-Enterprise – O-RAN Policy Coalition | Advocate for policies that lead to O-RAN adoption and foster competition and innovation. |
| Worldwide | Multiple companies, vendors and research institutes – ORAN Alliance | Through our research programs, we promote innovation and competitiveness in the telecommunications sector at both national and regional levels. |
O-RAN is at the vanguard of a transformation in the digital connectivity landscape. Its potential to reshape connectivity stems from its fundamental principle: the separation of hardware and software components of traditional systems. By separating these traditionally integrated elements, O-RAN introduces flexibility and interoperability, paving the way for innovation and efficiency. This new agility allows network operators to mix and match components from different vendors, fostering a competitive ecosystem in which best-of-breed solutions can thrive. The result is lower barriers to entry for new entrants, promoting market diversity and reducing costs. O-RAN’s standards-based approach fosters collaboration and compatibility across the industry, facilitating rapid deployment and scalability.
By promoting openness and standardization, O-RAN has the potential to democratize access to advanced connectivity technologies, bridging the digital divide and bringing reliable internet access to underserved communities.
The impact of O-RAN goes beyond simply reducing costs to enhancing network resiliency and security as the distributed architecture makes it easier to identify and mitigate vulnerabilities. By promoting openness and standardization, O-RAN has the potential to democratize access to advanced connectivity technologies, bridging the digital divide and bringing reliable internet access to underserved communities. As communications infrastructure undergoes this major evolution, players across the industry will benefit from the increased innovation, efficiency, and inclusiveness that O-RAN will foster, ultimately shaping a more connected and equitable digital future.
Leveling connection fields
The rise of O-RAN will have a profound impact on the future of digital connectivity and geopolitics. By fostering a diverse ecosystem of vendors and promoting interoperability, O-RAN has the potential to enhance competition, foster innovation, and defend against Chinese dominance in 5G. As the digital realm continues to grow, the search for innovative solutions that foster resilience, security, and democratization remains paramount. With concerted efforts from countries across the globe, exemplified by initiatives such as the QUAD collaboration, O-RAN has become the epitome of collaborative innovation. As the world marches forward into the era of digital connectivity, O-RAN will serve as a beacon of possibilities, reshaping the landscape and ushering in a new era of connectivity for the next generation.
Tanya Agarwal I am a research intern at the Observer Research Foundation.
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