Open Interfaces and Innovation in Telecommunications

A new approach in the 5G network architecture has been gaining widespread support in the mobile networks market. Open RAN (“Open Radio Access Network”) introduces open interfaces in the radio access network that will have a significant impact on both operators and suppliers. It aims to increase competition, resilience and innovation, as well as to reduce network costs for mobile operators.

However, European policymakers have to ensure that the rollout of the new technology will avoid unintended consequences for competition and will not be disrupted by unpredictable interventions, allowing the development of a competitive and diverse Open RAN supply chain.

The new CERRE Tech, Media, Telecom report, authored by Marc Bourreau and Wolter Lemstra, first provides a history of the development of mobile networks that led to the advent of Open RAN and then delves into a detailed economic assessment of the opportunities and risks that could potentially arise with the expansion of this new technology. Lastly, the paper concludes with policy recommendations for policymakers to ensure the success of Open RAN, including:

• Limit any interventions which might introduce significant uncertainty for suppliers or operators;
• Avoid interventions which may restrict the diversity of sources of supply;
• Allow the industry to collaborate in testing and the development of new Open RAN technologies and standards;
• Ensure that any public testing and R&D activities complement industry efforts rather than crowding them out;
• Intervene effectively and quickly should disputes arise between stakeholders;
• Support collaboration amongst small MNOs for joint procurement of Open RAN;
• Ensure that the market does not inhibit the emergence of fundamentally new business models.