How open RAN is going to reduce the cost?

RAN
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How open RAN is going to reduce the cost? How is it cheaper than legacy network?

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Open RAN (Radio Access Network) is expected to reduce costs in several ways compared to traditional legacy networks. Here are some key factors that contribute to cost savings with Open RAN:

  1. Vendor Competition: Open RAN promotes interoperability and standardization, allowing network operators to choose components from multiple vendors for different parts of the network. This increased competition helps drive down costs as vendors strive to offer more cost-effective solutions to win contracts.

  2. Hardware Decoupling: Open RAN decouples hardware and software components, enabling operators to use commercially available off-the-shelf (COTS) hardware instead of relying on proprietary, vendor-specific hardware.

  3. Software-Defined Architecture: Open RAN embraces a software-defined approach, where functionalities traditionally implemented in hardware are virtualized and implemented through software.

  4. Multi-Vendor Integration: Operators can avoid vendor lock-in and negotiate better pricing and terms.

  5. Operational Efficiency: It enables network operators to deploy and manage network functions more efficiently, optimizing resource utilization and reducing operational complexity, since everything is at cloud

  6. Lower Deployment Costs:This reduces the need for dedicated hardware at every site, resulting in lower deployment costs, reduced site rental expenses, and simplified site infrastructure.

  7. Scalability and Future-proofing: Open RAN’s modular and flexible architecture enables network operators to scale their networks more efficiently, adding capacity where needed without extensive hardware upgrades.