OpenRAN 101 Series

OpenRAN: Why, What, How, When

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Table of Contents

..........................................................................................................1

History ......................................................................................................3

Evolution of HW/SW Disaggregation ......................................................... 3

Why ...........................................................................................................3

What ..........................................................................................................4

Virtualized RAN (VRAN) versus OpenRAN ................................................ 4

How ...........................................................................................................5

When .........................................................................................................6

Parallel Wireless, Inc. Proprietary and Confidential

Parallel Wireless, Inc. Proprietary and Confidential – Not for Distribution. This information is subject to change at Parallel Wireless’ discretion. The only warranties for Parallel
Wireless products and services are set forth in the express warranty statements accompanying such products and services. No license to any intellectual property rights is granted
by this document. Trademarks and registered trademarks are the property of their respective owners.

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OpenRAN 101 Series
OpenRAN: Why, What, How, When

History
The entire telecom industry is going through a dramatic change that can be only compared to the
change that data centers went through in the 2000s, all driven by Moore’s Law. This is driving the
need to move from costly, proprietary RAN solutions to COTS and open, software-based ones,
and to create a broader vendor supply chain.
Evolution of HW/SW Disaggregation
NOW in Telecom
Software

PC OS Distributed Open source Cloud computing Linus based OS vEPC Open Compute
Apps Linux-based Platform virtualization SDN across ALL G

1965 1980s 1990s 2000s 2004 2018

Moore’s the cost of computer power to the cost of computer power to the the cost of computer power to the
Law the consumer falls enterprise falls telecom falls

Mainframes become • Intel x86 Switches • x86 enables scale/ • RAN hw gets
Hardware

obsolete proliferation h/w gets performance standardized

• Server hardware standardized • Delivers CAPEX
gets standardized reduction 60% and
PCs emerge OPEX by 90%

Consumer Enterprise Telecom

Source: Parallel Wireless

The main takeaway here: Software is only as good as underlying hardware. Once there were
COTS servers available to disaggregate the RAN, the Open RAN movement got its wind.
Why
Most of the CAPEX required to build a wireless network is related to the RAN segment, reaching
as high as 80% of the total network cost. Any reduction in the RAN equipment cost will significantly
help the bottom line of wireless operators as they struggle to cope with the challenges of ever-
increasing mobile traffic and flat revenues. Forecasts show 5G deployment costs falling 30%
between now and 2022 if a network is built in the traditional way, but those deployment costs
could drop by 50% if an open architecture is used. MNOs are also realizing that opening up the
RAN for only 5G will not reduce the overall network TCO. The operators believe that modernizing
their legacy networks, in addition to deploying 5G, will reduce their overall network OPEX as they
will have one unified network to run and will be able to make time and cost-saving remote
upgrades to the overall site.
The concept of Open RAN goes beyond just standards interoperability. In theory, a RAN built by
any of the legacy vendors is supposed to be interoperable with any device, any core, and any
transmission network due to its conformance with 3GPP standards. Right? Not so much, actually.
Though the interfaces are “supposed” to be open, in traditional RAN deployments, the software
and interfaces remain either proprietary or optimized by the individual vendor and are often tied
to the underlying hardware by the SAME vendor. Meaning operators cannot put vendor B’s
software on a BBU from vendor A. Any software upgrades are tied into the installed base, and if
an operator wants to do a swap, they need to rip out all of it: from the radio to the BBU hosting
the software. Wouldn’t it be much easier to 1. keep the radio on the tower, installed, so no one
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Wireless products and services are set forth in the express warranty statements accompanying such products and services. No license to any intellectual property rights is granted
by this document. Trademarks and registered trademarks are the property of their respective owners.

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has to climb and replace it, and 2. keep the BBU at the bottom of tower, and 3. simply upgrade
the software remotely without going to a site?
The main takeaway: Following data center = software-driven deployment model will reduce
deployment cost and help avoid vendor lock-in.
What
About 10 years ago, virtualization of the RAN started with the C-RAN (cloud RAN or centralized
RAN) initiative from IBM, Intel and China Mobile. C-RAN resulted in a deployment model where
a baseband unit that was doing digital processing could be located in a data center and not on
the site itself – under the radio or RRH (remote radio head unit) where the radio processing was
happening – and was instead connected to the baseband unit via a dedicated high-bandwidth
connection. The C-RAN required a new fronthaul interface, and various industry standards such
as the Common Public Radio Interface (CPRI) and the Next Generation Fronthaul Interface
(NGFI) evolved to enable these new interfaces between the radios and baseband. C-RAN wasn’t
necessarily open as we understand it today, but it did begin the movement toward disaggregating
the RAN
Next came Virtual RAN, or, vRAN. Does Open RAN equal Virtual RAN? Not exactly. Let us
explain. With vRAN, the proprietary hardware remains as it is, but the BBU gets replaced by a
COTS server rather than proprietary hardware. The software that runs on the BBU is virtualized
to run on any COTS server. The proprietary interfaces remain as they are. Here’s a picture that
illustrates how we see it.
Virtualized RAN (VRAN) versus OpenRAN

vRAN OpenRAN
Antennas
RF
Remote Radio Proprietary COTS based Hardware (SDR)
Unit (RRU) Hardware Can be purchased from any
• DAC/ADC ODM/OEM /RAN Hardware Vendor
• RF
Equipment Open Interface
Proprietary
Any vendor software can work
Fiber Cabling
CPRI
Interfaces on this hardware

Baseband COTS Server

Unit (BBU) +
Proprietary Software
With Virtualized Functions
Contemporary Base Station
• Signal Processing
• Network Access
• Fiber Optic Cables

vRAN is not necessarily OpenRAN

Source: Parallel Wireless

The point to emphasize here is that vRAN is not Open RAN as it is not completely open; it still
contains proprietary interfaces and purpose-built hardware. Open RAN is, instead, a movement
to define and build 2G, 3G, 4G and 5G RAN solutions based on a general-purpose, vendor-neutral
hardware and software-defined technology. Open RAN Is the disaggregation of hardware and
software: the RRU / RRH hardware becomes a GPP-based or COTS hardware that can be
purchased from any ODM, OEM or RAN hardware vendor. The BBU is the same as in the case
of vRAN: COTS server + vendor’s proprietary software with virtualized functions.

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Parallel Wireless, Inc. Proprietary and Confidential – Not for Distribution. This information is subject to change at Parallel Wireless’ discretion. The only warranties for Parallel
Wireless products and services are set forth in the express warranty statements accompanying such products and services. No license to any intellectual property rights is granted
by this document. Trademarks and registered trademarks are the property of their respective owners.

www.parallelwireless.com
The main thing with Open RAN is that the interface between the BBU and RRU / RRH is an open
interface, so, any vendor’s software can work on any open RRU / RRH. With Open RAN and the
"virtualization" it brings, operators should be able to run software-based network functions on
standard servers. More open interfaces enable them to use one supplier's radios with another's
processors -- something not currently possible with traditional solutions.
The OpenRAN vision is that the RAN is open within all aspects, with the interfaces and operating
software separating the RAN control plane from the user plane, building a modular base station
software stack that operates on commercial-off-the-shelf (COTS) hardware, with open north- and
south-bound interfaces. This software enabled Open RAN network architecture enables a “white
box” RAN hardware – meaning that baseband units, radio units and remote radio heads can be
assembled from any vendor and managed by Open RAN software to form a truly interoperable
and open network. This way, the underlying hardware layer (radios and servers) stay on site; the
only thing that gets replaced is the software as shown in the graphic below.
Example Scenario: OpenRAN Deployment Model
SP/MNO could replace the OpenRAN software as easily as they did the hardware. Existing OpenRAN
hardware continues to work with the new software from Vendor V2
Service
Service
Service
Service
Service
Service
Service
Service
Service
Service
Service
Service
Service
Service
Service
Core

Transport Network

V2
OpenRAN Software

OpenRAN Hardware
from any ODM/OEM/ C B A C B B C A B C
RAN Vendor

Source: Parallel Wireless

The main takeaway here is that a mobile operator can virtualize and disaggregate their RAN, but
unless the interfaces between the components are open, the RAN is not truly open.
How
In the next blog, we will talk in detail about RU, CU, DU and all that “acronym soup” and what it
means. Right now, here are some basics. 3GPP considered the split concept (DU and CU) from
the beginning for 5G. In a 5G cloud RAN architecture, the BBU functionality is split into two
functional units: a distributed unit (DU), responsible for real time L1 and L2 scheduling functions,
and a centralized unit (CU) responsible for non-real time, higher L2 and L3. In a centralized 5G
cloud RAN, the DU physical layer and software layer are hosted in an Edge cloud datacenter or
central office, and the CU physical layer and software can be collocated with the DU or hosted in
a regional clouad data center. While CUs will maintain BBU-like functionalities, DUs will be more
than RRH in terms of processing capacities. And this is where the Open RAN concept comes in:
from COTS-based servers for DU and CU software to RU from any vendor. Open RAN is the key

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Parallel Wireless, Inc. Proprietary and Confidential – Not for Distribution. This information is subject to change at Parallel Wireless’ discretion. The only warranties for Parallel
Wireless products and services are set forth in the express warranty statements accompanying such products and services. No license to any intellectual property rights is granted
by this document. Trademarks and registered trademarks are the property of their respective owners.

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to next-generation mobile network infrastructure and as a result of vendor interoperability, it offers:
1. Ability to use non-ideal fronthaul (i.e. 2. Ability to select any COTS-based BBU
Ethernet), overcoming the traditional (Remember the original dilemma when an
constraints of CPRI over fiber: Legacy RAN operator could not put vendor B’s software
platforms have been based on proprietary on a BBU from vendor A? Not an issue any
hardware and rely on long and costly life cycles more.) and pool them as necessary for ALL
in development, deployment, and operation. This G deployments: a strategic software
created vendor lock-in and the inability to keep differentiation by enabling the Open-RAN
pace with technology and demographic based Remote Radio Units (RRUs) to
changes. With each generation of radio interface interwork with the COTS-based Virtualized
change, these radios are typically replaced with Baseband Unit (vBBU), preventing vendor
newer versions at a significant investment and lock-in.
inconvenience to mobile operators, as they must
crew to each site to rip and replace.
Open RAN is about horizontal openness – with open interfaces enabling functions of the RAN to
connect with other functions, from a radio unit (RU) to a baseband (DU-CU), to the controller to
the NMS/orchestrator.
And though the functional split concept was introduced for 5G, to get full interoperability and cost
benefit, it must be applied to RAN for 2G 3G 4G as well.
The main takeaway: When RAN is opened up horizontally, it could bring in a new range of low-
cost radio players, and it gives mobile operators a choice to optimize deployment options for
specific performance requirements at much better cost.
When
The Telecom Infra Project (TIP) was set up in early 2016 as MNOs were frustrated with a lack of
innovation in a highly concentrated/closed ecosystem and high costs in the telecom equipment
sector. The Open RAN TIP group has brought together operators, traditional equipment vendors
and startups that are using open source technologies and open approaches.
In June 2018, Vodafone and Telefónica announced a joint RFI to evaluate RAN technologies that
are software-based and that run on top of commoditized hardware.
At TIP Summit in October 2018, Telefónica and Vodafone announced the vendors they are using
in their Open RAN pilot deployments. Telefónica and Vodafone sought an Open RAN platform
that could provide 2G, 3G, and 4G in addition to 5G. Both operators were aligned on the need to
scale these solutions in their rural footprint first as one of the levers for success. The effort in TIP
was done to push the sustainable growth of the Open RAN technology driving the industry toward
a new generation of open solutions.
As part of the Telecom Infra Project (TIP), Facebook is working closely with telecom service
providers and operators to accelerate innovation, new technology, and business approaches to
help the industry build the networks of the future. Through this program, Facebook is working with
operators in areas that have not been covered with any kind of communication services in various
geographies, such as Latin America and some parts of Europe. The cost attractions of Open RAN
enabled by interoperability could prove important in such diversified markets from high-income to
low-income markets.
Vodafone, the leading innovator in Open RAN, recently noted “the global supply of telecom
network equipment has become concentrated in a small handful of companies over the past few
years. More choice of suppliers will safeguard the delivery of services to all mobile customers,
increase flexibility and innovation and, crucially, can help address some of the cost challenges

Parallel Wireless, Inc. Proprietary and Confidential

Parallel Wireless, Inc. Proprietary and Confidential – Not for Distribution. This information is subject to change at Parallel Wireless’ discretion. The only warranties for Parallel
Wireless products and services are set forth in the express warranty statements accompanying such products and services. No license to any intellectual property rights is granted
by this document. Trademarks and registered trademarks are the property of their respective owners.

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that are holding back the delivery of internet services to rural communities and remote places
across the world.”
Vodafone added the move will improve “supply chain resilience,” introducing “a wave of new 2G,
3G, 4G and 5G technology vendors, in addition to the existing market leaders.”
The O-RAN Alliance was formed after the merger of the C-RAN alliance and XRAN. Today, it has
more than 160 mobile operators, vendors, and research & academic institutions operating in the
Radio Access Network industry. The O-RAN Alliance publishes new RAN specifications, releases
open software for the RAN, and supports its members in integration and testing of their
implementations. But as mentioned before, for Open RAN to be open, the interfaces need to be
open. The greatest example of it is Nokia in the Rakuten deployment, when they opened up their
radios to another vendor’s software.
TIP is not writing specs like O-RAN Alliance, but rather TIP is promoting, educating and deploying
OpenRAN globally, starting in LATAM in 2016, then with Vodafone in Asia, Europe and DRC.
Global MNOs are realizing the economic benefits of open architecture. They are setting up teams
and focusing on innovation and engagements in Open RAN architecture. While earlier they used
to buy hardware and software together from a particular supplier, they are now splitting the orders
for hardware and software. This will result in significant CAPEX and OPEX realizations,
competency and faster deployments.
The main takeaway: contrary to the information being published by legacy RAN vendors, Open
RAN is real; Open RAN has been deployed in commercial networks today; the Open RAN
community is thriving; the cost savings are being realized; and operational performance
requirements and KPIs are being met.
In our next installment, we will look at what is RU, CU, DU and why they matter. Post comments
if you have any thoughts on this installment or questions!

Parallel Wireless, Inc. Proprietary and Confidential

Parallel Wireless, Inc. Proprietary and Confidential – Not for Distribution. This information is subject to change at Parallel Wireless’ discretion. The only warranties for Parallel
Wireless products and services are set forth in the express warranty statements accompanying such products and services. No license to any intellectual property rights is granted
by this document. Trademarks and registered trademarks are the property of their respective owners.

www.parallelwireless.com