The vRAN (Virtualized Radio Access Network) Ecosystem: 2017 – 2030 – Opportunities, Challenges, Strategies & Forecasts

The vRAN (Virtualized Radio Access Network) Ecosystem: 2017 – 2030 – Opportunities, Challenges, Strategies & Forecasts

Table of Contents

1 Chapter 1: Introduction 12
1.1 Executive Summary 12
1.2 Topics Covered 14
1.3 Forecast Segmentation 15
1.4 Key Questions Answered 16
1.5 Key Findings 17
1.6 Methodology 18
1.7 Target Audience 19
1.8 Companies & Organizations Mentioned 20

2 Chapter 2: An Overview of vRAN 22
2.1 C-RAN (Centralized Radio Access Network): Opening the Door to RAN Virtualization 22
2.1.1 Decoupling the Base Station 22
2.1.2 Brief History 23
2.1.3 Outlook on Future Investments 23
2.2 What is vRAN? 24
2.2.1 Leveraging Commodity Technologies 25
2.2.2 Moving RAN to the Cloud 25
2.3 Key Functional Elements of vRAN 27
2.3.1 Remote Radio Unit 27
2.3.2 vBBU (Virtualized Baseband Unit) 27
2.3.2.1 Baseband VNFs (Virtualized Network Functions) 28
2.3.2.2 RTOS (Real-Time Operating System) & Virtualization Environment 29
2.3.2.3 GPP (General Purpose Processor) Platform 30
2.3.2.4 Dedicated Programmable Hardware 30
2.3.2.5 External Interactions 31
2.3.3 Fronthaul 32
2.3.3.1 Technologies 32
2.3.3.2 Interface Options 34
2.4 Baseband Functional Split Approaches 36
2.4.1 Fully Virtualized Baseband Processing: PHY-RF Split 37
2.4.2 Partially Virtualized Functional Splits 38
2.4.2.1 Intra-PHY Split 39
2.4.2.2 MAC-PHY Split 40
2.4.2.3 Intra-MAC Split 40
2.4.2.4 RLC-MAC Split 41
2.4.2.5 Intra-RLC Split 41
2.4.2.6 PDCP-RLC Split 41
2.4.2.7 RRC-PDCP Split 42
2.5 Market Growth Drivers 42
2.5.1 Capacity & Coverage Improvement: Addressing the Mobile Data Traffic Tsunami 42
2.5.2 Bringing Intelligence to the Edge: MEC (Mobile Edge Computing) 44
2.5.3 OpEx Reduction: Reducing Energy & Maintenance Costs 44
2.5.4 CapEx Reduction: BBU Resource Pooling & Commodity IT Hardware 45
2.5.5 Agile & Flexible Network Architecture 45
2.5.6 Enhanced Support for Advanced RAN Coordination Features 46
2.5.7 Multi-Tenancy & RAN Sharing 46
2.5.8 Enabling Painless Migration Towards Future RAN Technologies 47
2.5.9 Impact of 5G Rollouts 47
2.6 Market Barriers 47
2.6.1 Fronthaul Investments 48
2.6.2 Virtualization Challenges 48
2.6.3 Vendor Proprietary Functional Splits 48
2.6.4 Migration from Legacy Architectures 49

3 Chapter 3: Standardization,  Regulatory & Collaborative Initiatives 50
3.1 3GPP (3rd Generation Partnership Project) 50
3.1.1 Functional Splits for vRAN Implementation in 5G Networks 50
3.1.2 Management of Virtualized Mobile Networks 51
3.2 Broadband Forum 52
3.2.1 TR-069 for PNF Management 52
3.3 CPRI Initiative 53
3.3.1 eCPRI for 5G Fronthaul Networks 53
3.4 ETSI (European Telecommunications Standards Institute) 54
3.4.1 ORI for Fronthaul 54
3.4.2 NFV (Network Functions Virtualization) for vRAN 54
3.4.3 MEC (Mobile Edge Computing) 56
3.5 IEEE (Institute of Electrical and Electronics Engineers) 57
3.5.1 IEEE 802.1CM: TSN (Time-Sensitive Networking) for Fronthaul 57
3.5.2 IEEE P1904.3: Standard for RoE (Radio over Ethernet) Encapsulations and Mappings 57
3.5.3 IEEE 1914: NGFI (Next Generation Fronthaul Interface) Working Group 58
3.5.4 Other Standards & Work Groups 59
3.6 ITU (International Telecommunications Union) 60
3.6.1 Focus Group on IMT-2020 60
3.7 MEF (Metro Ethernet Forum) 61
3.7.1 Ethernet Transport 61
3.8 NGMN (Next Generation Mobile Networks) Alliance 62
3.8.1 P-CRAN (Project Centralized RAN) 62
3.9 ONF (Open Networking Foundation) & ON.Lab (Open Networking Lab) 63
3.9.1 M-CORD (Mobile Central Office Re-architected as a Datacenter) 63
3.10 OSA (OpenAirInterface Software Alliance) 65
3.10.1 LTE vRAN Implementation 65
3.11 SCF (Small Cell Forum) 66
3.11.1 Release 8: Small Cell Virtualization with nFAPI 66
3.12 TIP (Telecom Infra Project) 68
3.12.1 OpenCellular Access Platform 68
3.13 xRAN Consortium 69
3.13.1 xRAN Architecture 69

4 Chapter 4: vRAN Deployment Models & Case Studies 70
4.1 Deployment Models 70
4.1.1 Distributed vRAN 70
4.1.2 Centralized vRAN: Cloud RAN 71
4.1.3 Virtualized Small Cells 73
4.2 Mobile Operator Case Studies 74
4.2.1 BT Group 74
4.2.2 China Mobile 75
4.2.3 China Unicom 77
4.2.4 KT Corporation 78
4.2.5 NTT DoCoMo 79
4.2.6 Orange 81
4.2.7 SK Telecom 82
4.2.8 SoftBank Group 84
4.2.9 Telefónica Group 86
4.2.10 TIM (Telecom Italia Mobile) 87
4.2.11 Vodafone Group 88

5 Chapter 5: vRAN Industry Roadmap & Value Chain 90
5.1 Industry Roadmap 90
5.1.1 2017 – 2020: Growing Adoption of Virtualized Small Cells 90
5.1.2 2020 – 2025: The Cloud RAN Era - Moving vRAN to the Data Center 91
5.1.3 2025 – 2030: Continued Investments with 5G Network Rollouts 91
5.2 Value Chain 92
5.2.1 Enabling Technology Providers 92
5.2.2 Radio Equipment Suppliers 93
5.2.3 vBBU Vendors 93
5.2.4 Fronthaul Networking Vendors 93
5.2.5 Mobile Operators 94
5.2.6 Test, Measurement & Performance Specialists 94

6 Chapter 6: Key Market Players 95
6.1 6WIND 95
6.2 ADLINK Technology 96
6.3 Advantech 97
6.4 Airspan Networks 98
6.5 Altiostar Networks 99
6.6 Amarisoft 100
6.7 Argela 101
6.8 Aricent 102
6.9 ARM Holdings 103
6.10 Artemis Networks 104
6.11 Artesyn Embedded Technologies 105
6.12 ASOCS 106
6.13 ASTRI (Hong Kong Applied Science and Technology Research Institute) 107
6.14 Broadcom 108
6.15 Casa Systems 109
6.16 Cavium 110
6.17 Cisco Systems 112
6.18 Clavister 113
6.19 Cobham Wireless 114
6.20 Comcores 115
6.21 CommAgility 116
6.22 CommScope 117
6.23 Contela 118
6.24 Dali Wireless 119
6.25 Dell Technologies 120
6.26 eASIC Corporation 121
6.27 Ericsson 122
6.28 Facebook 123
6.29 Fujitsu 124
6.30 Hitachi 125
6.31 HPE (Hewlett Packard Enterprise) 126
6.32 Huawei 127
6.33 IBM Corporation 128
6.34 IDT (Integrated Device Technology) 129
6.35 Intel Corporation 130
6.36 ip.access 131
6.37 IS-Wireless 132
6.38 JMA Wireless 133
6.39 Kathrein-Werke KG 134
6.40 Mellanox Technologies 135
6.41 Microsemi Corporation 136
6.42 Mobiveil 137
6.43 MTI Mobile 138
6.44 NEC Corporation 139
6.45 Nokia 140
6.46 NXP Semiconductors 141
6.47 Octasic 142
6.48 Parallel Wireless 143
6.49 Phluido 144
6.50 Qualcomm 145
6.51 Quortus 146
6.52 Radisys Corporation 147
6.53 Red Hat 148
6.54 Samsung Electronics 149
6.55 SOLiD (SOLiD Technologies) 150
6.56 SpiderCloud Wireless 151
6.57 Sumitomo Electric Industries 152
6.58 Sunnada (Fujian Sunnada Communication Company) 153
6.59 Sunwave Communications 154
6.60 TI (Texas Instruments) 155
6.61 Xilinx 156
6.62 Xura 157
6.63 ZTE 158

7 Chapter 7: Market Analysis & Forecasts 159
7.1 Global Outlook on vRAN Investments 159
7.2 Segmentation by Deployment Model 160
7.2.1 Virtualized Small Cells 160
7.2.2 Virtualized Macrocells 161
7.3 Segmentation by Air Interface Technology 161
7.3.1 LTE & 3G 162
7.3.2 5G NR (New Radio) 162
7.4 Segmentation by Submarket 163
7.4.1 vRAN Radio Units 163
7.4.1.1 Virtualized Small Cell Radio Units 165
7.4.1.2 Virtualized Macrocell Radio Units 166
7.4.2 vBBUs (Virtualized Baseband Units) 167
7.4.2.1 Virtualized Small Cell BBUs 169
7.4.2.2 Virtualized Macrocell BBUs 170
7.5 Segmentation by Region 172
7.5.1 vRAN Radio Units 172
7.5.2 vBBUs 173
7.6 Asia Pacific 175
7.6.1 vRAN Radio Units 175
7.6.2 vBBUs 176
7.7 Eastern Europe 178
7.7.1 vRAN Radio Units 178
7.7.2 vBBUs 179
7.8 Middle East & Africa 181
7.8.1 vRAN Radio Units 181
7.8.2 vBBUs 182
7.9 Latin & Central America 184
7.9.1 vRAN Radio Units 184
7.9.2 vBBUs 185
7.10 North America 187
7.10.1 vRAN Radio Units 187
7.10.2 vBBUs 188
7.11 Western Europe 190
7.11.1 vRAN Radio Units 190
7.11.2 vBBUs 191

8 Chapter 8: Expert Opinion – Interview Transcripts 193
8.1 Ericsson 193
8.2 Nokia Networks 196
8.3 ASOCS 201
8.4 SpiderCloud Wireless 204
8.5 Parallel Wireless 206

9 Chapter 9: Conclusion & Strategic Recommendations 210
9.1 Why is the Market Poised to Grow? 210
9.2 Competitive Industry Landscape: Acquisitions, Alliances & Consolidation 210
9.3 Is Centralization a Pre-Requisite for vRAN Implementation? 211
9.4 Setting the Foundation for 5G NR (New Radio) Upgrades 211
9.5 What is the Cost Saving Potential of vRAN? 212
9.6 Integration with MEC (Mobile Edge Computing) 213
9.7 Moving Towards a Cloud Operating Model 213
9.8 Prospects of Neutral Hosting with vRAN 214
9.9 Enabling RAN Slicing 215
9.10 Unlicensed Spectrum: Impact on Virtualized Small Cell Design 217
9.11 Geographic Outlook: Which Countries Offer the Highest Growth Potential? 218
9.12 Strategic Recommendations 219
9.12.1 vRAN Solution Providers 219
9.12.2 Mobile Operators 220

List of Figures

Figure 1: C-RAN Architecture 23
Figure 2: vRAN Architecture 25
Figure 3: Key Remote Radio Unit & vBBU Functions 29
Figure 4: VM vs. Container Virtualization 31
Figure 5: CPRI Protocol Layers 34
Figure 6: Baseband Functional Split Options for vRAN 37
Figure 7: Examples of Maximum Required Bitrate on a Fronthaul Link for Possible PHY-RF Split 38
Figure 8: Performance Comparison of Baseband Functional Split Options for vRAN 40
Figure 9: Annual Global Throughput of Mobile Network Data Traffic by Region: 2017 – 2030 (Exabytes) 44
Figure 10: ETSI NFV Architecture 56
Figure 11: M-CORD Focus Areas 65
Figure 12: nFAPI Interfaces 67
Figure 13: Distributed vRAN Deployment Model 72
Figure 14: Cloud RAN Deployment Model 73
Figure 15: Virtualized Small Cell Deployment Model 74
Figure 16: China Mobile’s Cloud RAN Vision 77
Figure 17: NTT DoCoMo’s Advanced C-RAN Architecture 80
Figure 18: SK Telecom's SDRAN (Software Defined RAN) Architecture 84
Figure 19: SoftBank's Virtualized Small Cell Trial 86
Figure 20: vRAN Industry Roadmap 91
Figure 21: vRAN Value Chain 93
Figure 22: Global vRAN Revenue: 2017 – 2030 ($ Million) 160
Figure 23: Global vRAN Revenue by Deployment Model: 2017 – 2030 ($ Million) 161
Figure 24: Global Virtualized Small Cell RAN Revenue: 2017 – 2030 ($ Million) 161
Figure 25: Global Virtualized Macrocell RAN Revenue: 2017 – 2030 ($ Million) 162
Figure 26: Global vRAN Revenue by Air Interface Technology: 2017 – 2030 ($ Million) 162
Figure 27: Global Virtualized LTE & 3G RAN Revenue: 2017 – 2030 ($ Million) 163
Figure 28: Global Virtualized 5G NR RAN Revenue: 2017 – 2030 ($ Million) 163
Figure 29: Global vRAN Revenue by Submarket: 2016 - 2030 ($ Million) 164
Figure 30: Global vRAN Radio Unit Shipments: 2017 – 2030 (Thousands of Units) 164
Figure 31: Global vRAN Radio Unit Shipment Revenue: 2017 – 2030 ($ Million) 165
Figure 32: Global vRAN Radio Unit Shipments by Deployment Model: 2017 – 2030 (Units) 165
Figure 33: Global vRAN Radio Unit Shipment Revenue by Deployment Model: 2017 – 2030 ($ Million) 166
Figure 34: Global Virtualized Small Cell Radio Unit Shipments: 2017 – 2030 (Units) 166
Figure 35: Global Virtualized Small Cell Radio Unit Shipment Revenue: 2017 – 2030 ($ Million) 167
Figure 36: Global Virtualized Macrocell Radio Unit Shipments: 2017 – 2030 (Units) 167
Figure 37: Global Virtualized Macrocell Radio Unit Shipment Revenue: 2017 – 2030 ($ Million) 168
Figure 38: Global vBBU Shipments: 2017 – 2030 (Units) 168
Figure 39: Global vBBU Shipment Revenue: 2017 – 2030 ($ Million) 169
Figure 40: Global vBBU Shipments by Deployment Model: 2017 – 2030 (Units) 169
Figure 41: Global vBBU Shipment Revenue by Deployment Model: 2017 – 2030 ($ Million) 170
Figure 42: Global Virtualized Small Cell BBU Shipments: 2017 – 2030 (Units) 170
Figure 43: Global Virtualized Small Cell BBU Shipment Revenue: 2017 – 2030 ($ Million) 171
Figure 44: Global Virtualized Macrocell BBU Shipments: 2017 – 2030 (Units) 171
Figure 45: Global Virtualized Macrocell BBU Shipment Revenue: 2017 – 2030 ($ Million) 172
Figure 46: vRAN Revenue by Region: 2017 – 2030 ($ Million) 173
Figure 47: vRAN Radio Unit Shipments by Region: 2017 – 2030 (Thousands of Units) 173
Figure 48: vRAN Radio Unit Shipment Revenue by Region: 2017 – 2030 ($ Million) 174
Figure 49: vBBU Shipments by Region: 2017 – 2030 (Units) 174
Figure 50: vBBU Shipment Revenue by Region: 2017 – 2030 ($ Million) 175
Figure 51: Asia Pacific vRAN Revenue: 2017 – 2030 ($ Million) 176
Figure 52: Asia Pacific vRAN Radio Unit Shipments: 2017 – 2030 (Thousands of Units) 176
Figure 53: Asia Pacific vRAN Radio Unit Shipment Revenue: 2017 – 2030 ($ Million) 177
Figure 54: Asia Pacific vBBU Shipments: 2017 – 2030 (Units) 177
Figure 55: Asia Pacific vBBU Shipment Revenue: 2017 – 2030 ($ Million) 178
Figure 56: Eastern Europe vRAN Revenue: 2017 – 2030 ($ Million) 179
Figure 57: Eastern Europe vRAN Radio Unit Shipments: 2017 – 2030 (Thousands of Units) 179
Figure 58: Eastern Europe vRAN Radio Unit Shipment Revenue: 2017 – 2030 ($ Million) 180
Figure 59: Eastern Europe vBBU Shipments: 2017 – 2030 (Units) 180
Figure 60: Eastern Europe vBBU Shipment Revenue: 2017 – 2030 ($ Million) 181
Figure 61: Middle East & Africa vRAN Revenue: 2017 – 2030 ($ Million) 182
Figure 62: Middle East & Africa vRAN Radio Unit Shipments: 2017 – 2030 (Thousands of Units) 182
Figure 63: Middle East & Africa vRAN Radio Unit Shipment Revenue: 2017 – 2030 ($ Million) 183
Figure 64: Middle East & Africa vBBU Shipments: 2017 – 2030 (Units) 183
Figure 65: Middle East & Africa vBBU Shipment Revenue: 2017 – 2030 ($ Million) 184
Figure 66: Latin & Central America vRAN Revenue: 2017 – 2030 ($ Million) 185
Figure 67: Latin & Central America vRAN Radio Unit Shipments: 2017 – 2030 (Thousands of Units) 185
Figure 68: Latin & Central America vRAN Radio Unit Shipment Revenue: 2017 – 2030 ($ Million) 186
Figure 69: Latin & Central America vBBU Shipments: 2017 – 2030 (Units) 186
Figure 70: Latin & Central America vBBU Shipment Revenue: 2017 – 2030 ($ Million) 187
Figure 71: North America vRAN Revenue: 2017 – 2030 ($ Million) 188
Figure 72: North America vRAN Radio Unit Shipments: 2017 – 2030 (Thousands of Units) 188
Figure 73: North America vRAN Radio Unit Shipment Revenue: 2017 – 2030 ($ Million) 189
Figure 74: North America vBBU Shipments: 2017 – 2030 (Units) 189
Figure 75: North America vBBU Shipment Revenue: 2017 – 2030 ($ Million) 190
Figure 76: Western Europe vRAN Revenue: 2017 – 2030 ($ Million) 191
Figure 77: Western Europe vRAN Radio Unit Shipments: 2017 – 2030 (Thousands of Units) 191
Figure 78: Western Europe vRAN Radio Unit Shipment Revenue: 2017 – 2030 ($ Million) 192
Figure 79: Western Europe vBBU Shipments: 2017 – 2030 (Units) 192
Figure 80: Western Europe vBBU Shipment Revenue: 2017 – 2030 ($ Million) 193
Figure 81: Centralization & Virtualization of RAN Functions 197
Figure 82: Centralized vs. Distributed Cloud RAN Architecture 200
Figure 83: Nokia's Cloud Based Radio Architecture 201
Figure 84: TCO Comparison Between vRAN and Conventional RAN Architecture ($ per GB) 213
Figure 85: Conceptual Architecture for Network Slicing in Mobile Networks 216
Figure 86: nFAPI support for LAA’s LBT Functionality 218

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