HOME Research Insight Cloud RAN drives both growth and profitability for operators



Cloud RAN drives both growth and profitability for operators


With the increasingly growing mobile traffic and easy availability of low priced products such as smart phones and tablets, consumer demands for high quality mobile data services have increased significantly. In order to stay profitable, mobile operators have introduced the Cloud RAN architecture, which helps in reducing the Capital Expenditure (CAPEX) and Operational Expenditure (OPEX), while increasing the efficiency and performance of the system. The Cloud RAN architecture comprises three main components: Baseband Units (BBU), Remote Radio Heads (RRH) and Optical Transport Networks (OTN) to connect the BBUs with RRHs.

There has been a significant rise in the growth of unstructured data from multiple sources across the globe. Big data has the vast potential to derive insights that provides competitive advantage in business. Big data also provides opportunity to enable innovative business models, as traditional models fail to meet underlying requirements of enterprises. Emergence of companies providing dedicated big data solutions such as NoSQL databases, Hadoop distribution products, data visualization tools and system software, is expected to make the big data market ecosystem complex.

With the increasingly growing mobile traffic and easy availability of low priced products such as smart phones and tablets, consumer demands for high quality mobile data services have increased significantly. In order to stay profitable, mobile operators have introduced the Cloud RAN architecture, which helps in reducing the Capital Expenditure (CAPEX) and Operational Expenditure (OPEX), while increasing the efficiency and performance of the system. The Cloud RAN architecture comprises three main components: Baseband Units (BBU), Remote Radio Heads (RRH) and Optical Transport Networks (OTN) to connect the BBUs with RRHs.

Cloud RAN is a centralized architecture, wherein all the BBUs are placed together in a centralized baseband pool, resulting in utilization of less infrastructural resources. This reduces the CAPEX and OPEX of the system, while increasing the systemís performance as well as the coverage area. Cloud RAN facilitates mobile communication, by helping mobile operators in delivering high quality mobile communication services, while maintaining steady growth and profitability. The Cloud RAN architecture helps in reducing CAPEX and OPEX and increases network efficiency and performance.

In the present scenario, mobile data traffic is surging due to increased broadband availability, rise in virtualization and rapid adoption of concepts such as enterprise mobility, mobile acceleration and BYOD. The adoption of Cloud RAN market is highly dependent on fiber availability across different regions. Fiber is a critical element in the Cloud RAN architecture and is very expensive to deploy. MarketsandMarkets expects the Asia Pacific region to hold the largest market share in the Cloud RAN space, as it has enormous fiber availability which is a catalyst for Cloud RAN adoption. MarketsandMarkets expects the Cloud RAN market to grow from $1.71 billion in 2013 to $11.31 billion by 2018 at a CAGR of 45.9% from 2013 to 2018.

Related Report:

Cloud RAN Market (Radio Access Network) - by Components (Remote Radio Units, Optical Transport Network, BBU, Processors, Servers, Test & Measurement), by Services (Integration, Network) - Worldwide Market Forecasts and Analysis (2013 - 2018)

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