© Analysys Mason Limited2024Contents1.Executive summary2.vRAN and Open RAN are entering a new phase of adoption and evolution3.Open RAN challenges are being addressed convincingly, and are moving on from performanceand TCOOperator deployment dates are not fixed, and addressing key challenges could accelerate progress5Operators are shifting their focus away from TCO and performance, and towards challengesassociated with commercial deploymentImproved visibility from real-worlddeployments is building confidence that vRAN will deliverTCO savings and performance gainsOperators are confident that all major Open RAN challenges will be addressed effectively within thenext four years4.Operators must be sure Open RAN will support a broad range of goals before they triggerwider deploymentsOperators have a broad range of commercial objectives, with a focus on driving new revenues anddifferentiationThe RAN is vital in supporting operators’ commercial objectives, and needs to deliver on a widerange of capabilities that support themEach commercial objective requires a different set of capabilities, and the RAN must be able tosupport these holistically and flexibly5.Confidence is growing that vRAN is the most capable architecture to support operators’ goals13Operators are assessing their next-generation RAN against an increasingly sophisticated matrix ofcriteria13vRAN is perceived to contribute more strongly than traditional RAN to many key commercialobjectivesvRAN is also increasingly expected to deliver technical KPIs more effectively than traditional RAN16Openness, automation and cloud-native platforms are vRAN’s key strengths in supporting operators’objectives6.Operators and vendors can take significant steps in 2024 to unlock the vRAN and Open RANmarketsRecommendations for operatorsRecommendations for vendors7.About the authorsList of figuresFigure 1.1: Key considerations for stakeholders in driving Open RAN’s next phase of deployment..............1 Contents124568991012141718192122 © Analysys Mason Limited2024ContentsFigure 2.1: Operators’ active or planned vRAN and Open RAN tests, trials and deployments 2023–2027;n=64..................................................................................................................................................................3Figure 2.2: Stage of development for operators’ vRAN and Open RAN projects n=64 (multiple projects perrespondent).......................................................................................................................................................4Figure 3.1: Operators’ preferred timescales to start commercial deployment of vRAN; n=64........................5Figure 3.2: Key challenges facing vRAN and Open RAN adoption n=64.......................................................6Figure 3.3: Projected TCO savings over 3 years for distributed vRAN or Open RAN compared to traditionalRAN..................................................................................................................................................................7Figure 3.4: Operator confidence that key vRAN and Open RAN challenges will be fully addressed within 4years; n=64.......................................................................................................................................................8Figure 4.1: Most important commercial objectives (percentage of operators placing each objective in theirtop 3, n=64......................................................................................................................................................10Figure 4.2: Most important RAN capabilities (any RAN architecture) that are required to support operators’commercial objectives n=64...........................................................................................................................11Figure 4.3: The significance of eight key RAN capabilities in supporting operators’ top 5 commercialobjectives n=64...............................................................................................................................................12Figure 5.1: Projected commercial benefits of vRAN that were rated most highly by operators surveyed inNovember 2021 and November 2023.............................................................................................................14Figure 5.2: Comparison of perceived effectiveness of vRAN compared to traditional RAN architecture insupporting operators’ top 12 commercial objectives (ordered by operator ranking of most to least important)........................................................................................................................................................................15Figure 5.3: Comparison of perceived effectiveness of vRAN compared to traditional RAN architectures insupporting operators’ top 10 technical network KPIs (ordered by operator ranking of most to least important)........................................