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Cloudized competition, virtual wireless access network is the trend
As operators increasingly adopt Network Function Virtualization (NFV), the landscape is evolving into a competitive cloud-based environment. In the past, NFV was primarily focused on the core network, but the industry trend is now shifting towards the Radio Access Network (RAN). This change signals that operators are actively exploring virtual radio access networks (vRANs) and cloud RAN (cRAN) solutions, often integrated with technologies like mobile edge computing (MEC).
The move toward virtualizing the RAN represents a major step forward for both operators and consumers, offering new opportunities to leverage the benefits of virtualization. Currently, most operator architectures remain centralized, with powerful core networks handling storage and computing tasks. However, this setup requires extensive transmission links between the edge and the core.
A new decentralized architecture is emerging, one that processes data closer to the edge, reducing the need for long-distance data transfers. This shift aligns with broader macro trends favoring distributed systems, making it an attractive direction for future network design.
Moore’s Law continues to shape the industry, driving down costs and enabling cloud technology to reach base stations through edge computing. While centralization offers short-term management advantages, in the long run, the declining cost of computing and storage, along with slower reductions in transmission costs, may favor more distributed models.
Distributed architectures offer better cost efficiency, performance, and scalability, which is why they are being explored at the edge and in the RAN. However, this transition is expected to be gradual rather than immediate.
RAN virtualization presents unique challenges compared to core network virtualization. The RAN is inherently distributed, making centralized processing difficult. Despite higher initial costs, RAN virtualization can unlock new savings and innovation opportunities. It involves deploying generic servers at thousands of points, including base stations and RF antennas, to support traditional and new functions.
Operators can run mobility management, baseband software, and even core network functions locally, improving efficiency and security. This also opens up possibilities for IoT, virtual reality, and other advanced services.
While RAN virtualization brings many benefits, it is a slow process. With millions of cellular base stations worldwide, each site's transition will take time—similar to past technology rollouts. Existing RAN infrastructure has already required significant investment, making full replacement challenging.
With 5G deployment on the horizon, the timing for vRAN might not be ideal just yet. A more practical approach is to deploy vRAN hardware alongside 5G. Although the rollout is gradual, these challenges are prompting new thinking about how to evolve RAN effectively.
Looking ahead, the industry will see strategic deployments of vRAN, including proof-of-concept trials, small-scale implementations, and targeted experiments in specific regions. These efforts aim to expand coverage, especially in remote or rural areas, and enhance networks using micro base stations, DAS, or cRAN solutions.
Each deployment will be evaluated based on its potential benefits and commercial viability. If utilization grows slowly, the business case may not be strong enough. Alongside these trials, operators will collaborate with standards bodies to develop vRAN infrastructure, ensuring compatibility with virtualization and supporting tools like OpenStack.
Economic factors will influence vRAN development, with tactical deployments expected in the near future. As 5G evolves, vRAN is likely to become part of the standard. Operators have time to implement and refine vRAN, but they must address the operational challenges that come with it.