The Competitive Conditions for Vendors in the Open RAN Ecosystem : A Study Informed by Expert Interviews

Sammanfattning

Mobile communication technology has become crucial in shaping the way modern society functions. The evolution of cellular networks has created an increasingly interconnected world, supporting various heterogeneous infrastructures. With the rollout of 5G, cellular networks are not only expected to support social and communication transformations, but also techno-economic growth for various industry, private and enterprise users. The approach of standardizing 5G Radio Access Network (RAN) architecture has been different from previous generations as it calls for more virtualized and software-based approaches that are flexible and open. The concept of Open RAN is a movement for open interfaces between the disaggregation of software and hardware of the RAN. Traditionally, the RAN market has been dominated by a handful of incumbent vendors deploying purpose-built RAN solutions. However, Open RAN enables an ecosystem that invites multiple-vendor solutions and creates a completely different market dynamic. This thesis explored the competitive conditions for incumbent and small vendors in the Open RAN ecosystem. This was also answered within the context of scale economies of vendors and implications of enterprise solutions in Open RAN. The study applied an exploratory and inductive approach where the researcher analyzed literature, as well as conducted interviews with several industry experts. The conclusions of the study suggests that incumbent vendors will lose shares in the RAN market as they will have to compete with smaller vendors that try to establish themselves. It was also suggested that the current immature state of Open RAN is not suitable for mission-critical deployments, but is instead a more viable option for software-based enterprise solutions. Further, it is suggested that dynamic relationships between incumbents and smaller vendors is necessary in order to drive the development of Open RAN.