Should telecom prioritize operational efficiency or supplier diversity?
Open RAN is here to stay. Top operators globally have committed to its rollout, governments are eager to see it succeed and even incumbent legacy vendors have thrown varying levels of support behind it.
The motives that got us to this point don’t matter.
The question as attention turns to ensuring Open RAN delivers on its full potential is what will be the primary driver moving forward: operational efficiency or supplier diversity?
This isn’t simply about selecting a vision but determining a long-term outcome. What end state do we want for telecom and what is Open RAN’s role in achieving it?
Supplier diversity on its own, while certainly appealing, is likely to result in a mirage if it is devoid of operational efficacy. This is because pursuing diversity without changing current operational paradigms will all but guarantee a slow race to the bottom.
To thrive, we have to recognize the real value of Open RAN: operational interoperability via open interfaces, designed to refine operations and support a marketplace flush with suppliers all competing with the best products.
The overarching challenge facing telecom is how to get to operational efficiency. It’s what’s driving AI hype and is a top goal of fledgling automation initiatives.
This isn’t simply about cutting costs to make things cheaper, which is ultimately an unsustainable, losing proposition. After all, a drive towards cheapness, without addressing material costs, only embeds fragility into the supply chain.
Rather, telecom needs the speed, agility and adaptability that accompanies a highly-efficient network. One that faces thousands of faults daily and is increasingly tasked with supporting the highest demand services, including from sectors where there is zero margin for failure.
You can’t get there with proprietary interfaces that create isolated automation pockets.
What we have achieved in Japan covering 98.7% of subscribers years ahead of schedule with an engineering team of 250 is a testament to what’s possible. Aggressive automation is at the heart of it all and Open RAN has been an enabler. The approach and results are proven. Now, it’s time for telecom to achieve the same result on an even larger scale.
Just look at what has been achieved by the hyperscalers in a relentless push toward open interfaces. Or consider Facebook's groundbreaking embrace of the Open Compute Project. Ultimately, it was the creation of an alternative supply chain that sidestepped stalwarts uninterested in playing along that changed the game and the trajectory of all stakeholders.
If telecom can converge on the same open interfaces, market accessibility soars. For our troubles, we get a vibrant marketplace where the most advanced radio products succeed, democratizing the playing field and minimizing friction. In other words, supplier diversity appears after all, as a second order effect.
We know this journey isn’t without challenges and hurdles. The technological intricacies of Open RAN exceed those of the server market and the quest for purity can be daunting. Yet, the drive to operational efficiency – which also unleashes economic efficiency – remains paramount.
With standardized open interfaces, operations undergo normalization, fostering an environment ripe for supplier diversity. Economic gains emerge from operational prowess. And the resulting efficiency supports swift execution, differentiating genuine savings from mere cost-cutting.
How a business operates, then, becomes critical. An organization that merely acquires Open RAN radios without overhauling its operational and procurement approach will stumble.
Ultimately, Open RAN's promise rises above the binary choice of diversity and efficiency. But its potential will only be unlocked when the industry collectively embraces a vision rooted in adaptability, sustainability and genuine economic value.
