BUILDING AN OPEN RAN ECOSYSTEM FOR EUROPE

BUILDING AN OPEN RAN
ECOSYSTEM FOR EUROPE
for Europe to lead in this essential innovation
Deutsche Telekom, Orange, Telecom Italia (TIM), Telefónica, Vodafone
November 2021

of 29
Table of Contents
Executive Summary....................................................................................................................... 3
Chapter 1: Open RAN and the Role of Europe in Future Networks.............................................. 5
Open RAN will foster innovation across industries................................................................... 6
Open RAN will increase resilience & stabilise the supply chain................................................ 7
Open RAN is crucial to maintain EU competitiveness & technology leadership ...................... 7
Chapter 2: The Open RAN Value Chain and Vendor Landscape ................................................... 9
Semiconductor (Chips and Components)................................................................................ 11
RAN Hardware......................................................................................................................... 12
RAN Software.......................................................................................................................... 13
Cloud ....................................................................................................................................... 14
Services.................................................................................................................................... 15
Development........................................................................................................................... 16
Summary ................................................................................................................................. 16
Chapter 3 – Europe at a Crossroads............................................................................................ 19
Chapter 4 – Policy Recommendations ........................................................................................ 22
Chapter 5 – Conclusion ............................................................................................................... 25
Annex-A- Building an Open RAN Ecosystem for Europe............................................................. 26
Glossary....................................................................................................................................... 29

of 29
Executive Summary
This paper highlights the urgent need for Europe to make Open Radio Access Networks (RAN) a
strategic priority. Europe's best opportunity to defend and grow its place in the global 5G and 6G
industry lies with building a broad and deep Open RAN ecosystem.
At a time when connectivity enables all parts of society and the economy to benefit from digital
services it is vital to have powerful and secure networks underpinned by strong supply chains. The
European Commission’s 5G Supply Market Trends report (August 2021) sets two overarching goals:
1. Develop an open and secure 5G ecosystem,
2. Promote European digital autonomy and technological sovereignty by supporting
collaboration between new and traditional vendors and a strong approach towards open
specifications in the 5G ecosystem.
Open RAN creates opportunities for new and traditional providers to support these goals by helping
to foster innovation across industries. This rapidly increases the choice of components, and therefore
the potential to innovate and meet the demands for a fast-growing variety of different use cases and
applications.
Network operators will need to deploy flexible networks with advanced features and services more
quickly, more widely and more cost-efficiently, which is crucial to maintain EU competitiveness and
technology leadership. This can only be achieved with interoperable, modular and open network
architectures that allow many suppliers to compete and innovate. Open RAN significantly accelerates
this development, driving innovation across the mobile network value chain and provides the basis
for establishing a dynamic and vibrant ecosystem of European players that can deliver innovative
and tailored solutions that are secure, resilient and environmentally sustainable; increasing the
resilience and stability of the supply chain.
Critics claim that Open RAN will allow non-EU players into European markets and therefore put
Europe’s digital sovereignty at risk. This is misleading as it ignores the fact that Open RAN is coming
regardless of what Europe decides - a matter of when, not if. The real question is whether Europe
wants to lead this new approach or become a follower. If Europe does not act now, it risks another
technology gap that would harm Europe’s future competitiveness in innovative and efficient next
generation networks, and ultimately its leadership and sovereignty in its own region.
Open RAN deployment will happen gradually as the technology matures and reaches mass-industrial
scale, meaning Traditional RAN will remain the dominant solution in 5G roll-out for the short term.
However, Open RAN is quickly becoming the next industry standard and innovation in this space is
rapidly accelerating towards a point of maturity. This means Open RAN will become the technology
of choice in the deployment and modernisation of networks. If the EU acts now, investment can help
mature Open RAN for large scale deployment, especially in dense urban areas. There is still time for
Europe to ensure its current global leadership position in the RAN value chain is translated into a
future global leadership in Open RAN, but this will only happen if the EU acts now.
This paper describes the role that Europe and Open RAN will play in future networks and highlights
the urgent need for Europe to make Open RAN a strategic priority, using an analysis of the Open RAN
value-chain and current players. The paper reveals important strengths and gaps that EU
policymakers will need to consider and presents a set of policy recommendations for Europe to
maintain a lead in the development and deployment of next generation mobile networks. This
requires policymakers and Administrations to:

of 29
Ensure high-level political support for Open RAN
• European policymakers should actively promote the development of an innovative, open and
interoperable telecommunications ecosystem.
• A dialogue between the EU Commission, Member States and industry stakeholders leading to a
joint public statement supportive of Open RAN. Europe needs to talk with “a common voice”
related to Open RAN.
Create a European roadmap for network innovation
• The European Commission should create a European Alliance on Next Generation
Communication Infrastructures as it has done for Cloud and Semiconductors, which are all vital
enablers for a whole range of industries.
• It should lead to a strategic roadmap and action plan to embrace emerging technologies starting
with Open RAN. The roadmap and action plan should drive and be reflected in European
associations and initiatives such as the IPCEI on Microelectronics & Communication
Technologies, the 5G Industry Association, the Joint Undertaking on Smart Networks & Services
and multi-country projects.
Incentivise and support EU Open RAN development
• Policymakers should reduce investment risk for EU vendors and start-ups, and support EU
partnerships, testbeds and trials with local and EU funding and tax incentives, in technology
areas which are strategically significant for the future of the EU.
• This includes funding from the European Commission and National Governments for consortium
projects that allow European companies to create strong partnerships and become viable
players in the Open RAN value chain.
Promote European leadership in O-RAN standardisation
• Formal cooperation between 3GPP, ETSI1
and the O-RAN Alliance by supporting adoption of O-
RAN specifications as voluntary standards by ETSI, possibly through a fast track procedure, in
complement to existing 3GPP specifications.
• A globally harmonised set of standards for Open RAN which ensures the openness and
interoperability of network equipment, including pan-European certification for Open RAN
interoperability and quality to build deployer and ecosystem confidence.
Engage in international partnerships
• Work with international partners to promote a secure, diverse, and sustainable digital and ICT
supply chain. The EU should make use of formats such as the G7, the EU-US Trade and
Technology Council and the Japan-EU ICT Dialogue to advance the development and
deployment of open and interoperable network architectures.

1
ETSI and O-RAN cooperation agreement should expand to include a fast-track procedure to accept O-
RAN Alliance specifications as ETSI standards

of 29
Chapter 1: Open RAN and the Role of Europe in Future Networks
Advanced communications infrastructure is fundamental for digitalisation and thus the
functioning and growth of modern economies and societies. New technologies such as network
slicing, edge computing and open architectures, supported by artificial intelligence / machine
learning (AI/ML), will transform networks from pure communications systems into platforms for
innovation. With 5G, networks will become part of the application space, involve new players
and pave the ground for new services. This will lead to a plethora of new and innovative
applications such as telemedicine, smart factories, smart homes and autonomous driving.
To cater for a fast-growing variety of different use cases and applications, network operators
will need to deploy flexible networks with advanced features and services more quickly, more
widely and more cost-efficiently. This essential need to enable faster innovation can only be
achieved with an interoperable, modular and open network architecture that allows many
suppliers to compete and innovate. By introducing such openness and interoperability in the
Radio Access Network, Open RAN significantly accelerates this development, driving innovation
across the mobile network value chain.
Roughly speaking, the mobile access network consists of a radio base station with an antenna,
a Radio Unit and a Baseband Unit. Current RAN implementations offered by traditional vendors
are vertically integrated solutions composed of proprietary hardware and software. This means
that all the components need to come from the same vendor as there is no interoperability
between vendors’ components. Thus, availability of any specific software functionality and
hardware is tied to a single vendor. As a result, Mobile Network Operators (MNOs) rely on
vendors’ individual technology roadmaps for hard- and software updates, limiting the overall
availability and pace of technology adoption with each innovation cycle.
In an Open RAN scenario, the RAN is deconstructed and reassembled into a set of fully open and
interoperable sub-systems. Interfaces between elements are fully standardised as per O-RAN
Alliance architecture and specifications and therefore the hardware and software components
no longer need to be sourced from a single supplier and can instead be provided by multiple
suppliers.
This so-called disaggregation of the RAN from traditional proprietary systems opens new
opportunities for new and traditional providers (Open RAN will foster innovation across
industries). This rapidly increases the choice of components, and therefore the potential to
innovate and meet the demands for a growing variety of use cases & applications (Open RAN is
crucial to maintain EU competitiveness & technology leadership). At the same time, it provides
the basis for establishing a dynamic and vibrant ecosystem of players that can deliver innovative
and tailored solutions that are secure, resilient and environmentally sustainable (Open RAN will
increase resilience & stabilise the supply chain).

of 29
Figure 1. Disaggregation and open interfaces in Open RAN vs Traditional RAN
In addition, virtualisation and cloudification of the different components of the Baseband Unit
will allow operators to run various software functions on generic hardware. This will be the next
logical step in the technological development of communications networks, enabling sharing of
infrastructure for RAN and edge computing. Open RAN will benefit from strong synergies with
edge data centres that will provide processing, networking and storage resources. Thanks to
these synergies, most of the advanced regions for Open RAN will also become the most
advanced places for edge cloud technologies, creating additional competitive benefits for low
latency services, Industry 4.0 and e-Health for instance.
Open RAN will foster innovation across industries
▪ Mobile networks have become part of critical infrastructure as they increasingly become
the primary enabler of communication, work, entertainment and industrial
transformation. As more and more services build on 5G and, in time, 6G networks,
network operators and industry will have an increasing number of different connectivity
and functionality needs. Moving from a closed and proprietary system to an open and
interoperable system allows multiple players to differentiate by providing different
components and functionality. This rapidly increases the choice of components,
stimulates innovation to meet demands for new use cases and creates synergies and
benefits across industries, and ultimately benefits consumers. For example, network
components used in Open RAN networks could also support specific connectivity needs
for Industry 4.0, optimising automation and machine learning processes. Where further
differentiation is needed additional software modules can be used.
▪ Faster innovation pace and increased competition will also lead to better products with
higher efficiency and lower power consumption (green networks). With improvements
such as the Open RAN Intelligent Controller (RIC), operators will be able to enable
intelligent traffic prediction and radio resource management using Machine Learning
models that adapt to measured network behaviour and performance and unlock
significant energy savings.
▪ Last, but not least, the use of standard hardware and network automation as well as an
increased level of competition will drive down overall Total Cost of Ownership with

of 29
lower OPEX and CAPEX in the medium to long run. Overall, efficiency gains will help to
keep roll-out costs for 5G at a sustainable level, thus helping achieve coverage targets.
Open RAN will increase resilience & stabilise the supply chain
▪ The wider instability of the telco supply chain is a significant challenge for operators and
for governments. Today, the number of global equipment suppliers (even with two in
Europe) is not sufficient from a resilience perspective. The key question confronting
governments and industry is whether in the future they can successfully source
technology that is secure, optimised for their needs and at a competitive price. To meet
future demands for innovative and tailored solutions in the digital economy, a resilient,
stable, innovative and competitive selection of vendors is vital for essential parts of
critical national infrastructure (CNI). Open RAN can play a key part by increasing the
number of potential suppliers, reducing dependencies and stabilising supply chains.
Open interfaces and interchangeable and separate components also allow for more
transparency and better assessment of security vulnerabilities, greater flexibility and
agility where changes need to be swift and efficient.
Figure 2. Proprietary versus Open RAN ecosystems: number of active vendors in the RAN supply
chain at the start of 2021
Open RAN is crucial to maintain EU competitiveness & technology leadership
▪ Today, Europe’s MNOs and industries are reliant on a limited and closed supply chain.
Europe is still home to two important global RAN vendors, and holds leading know-how,
technical skills and intellectual property rights (IPRs) in the telecom infrastructure space.
European vendors and operators are both active in the standardisation and specification
bodies that shape the standards defining networks from 2G to 5G and going towards
6G. Nevertheless, Europe’s leadership is increasingly being challenged by Asia and the
US, where governments have already identified Open RAN as a strategic lever to pull
network competence and technological leadership back into their respective regions
and to position themselves favourably for next generation network architecture. It can
be expected that the growing demand for Open RAN components from these regions as
well as from operators within the EU will make Open RAN the technology of choice and

of 29
disrupt the business model for European technology leaders in RAN2
. It is therefore vital
that, also in Europe, Open RAN is identified as a strategic priority early on. Failure to
support Open RAN today exposes Europe to the risk of new dependencies as gaps in
emerging technology developments will be very hard to close. In fact, we know from
experience that a technology leadership gap of 1-2 years may be difficult or impossible
to close. Hence a lost opportunity today would have a detrimental effect on Europe’s
future technological and industrial competitiveness in this space, but equally on the
related European ecosystem. Europe is well-placed to build on its existing capabilities
and know-how. It can play a unique role in driving Open RAN based on its strong
industrial and academic base of expertise, its global leadership in the current vendor
landscape and its telecommunications industry, including both vendors and operators,
many of which operate globally. They have the know-how and opportunity to encourage
the development of new standards and innovative technology enabling Europe to lead
the development of next generation network technology.
2
More cost-effective RANs, built on the basis of operators’ requirements rather than vendors’
roadmaps, could lead to over USD285 billion in additional GDP globally over the next ten years, and over
USD90 billion annually from 2030. (https://telecominfraproject.com/openran-bring-285-billion-global-
gdp-gains-stimulated-by-tip-initiatives-develop-open-disaggregated/)

of 29
Chapter 2: The Open RAN Value Chain and Vendor Landscape
The change from closed propriety solutions to Open RAN marks a shift in paradigm in network
architecture. It will drive innovation for a large and varied number of future use cases and help
create an ecosystem that can cater for this demand. This chapter looks at the state of play of
the current European ecosystem and also includes European SMEs3
. The findings are
underpinned by results of a supporting European ecosystem research study, conducted by
Analysys Mason during the first half of 2021, where 98 companies were analysed. The first step
defines the Open RAN value chain and key product and service categories. This helps to identify
companies who are either active or have the potential to become active in Open RAN, map them
to the categories and provide an overview of Europe’s vendor landscape in each of the
categories. This overview is meant to serve as a useful tool for developing policy
recommendations to build a European ecosystem that is globally competitive and future-proof4
.
The Open RAN value chain is divided into six major technology and service categories:
1. Semiconductors (chips and related components): This category includes design and
manufacturing of chipsets and related radio components required to build Open RAN
elements such us radio units, active antennas and distributed & centralised server units.
2. RAN hardware: This category includes design and manufacturing of hardware elements
for radio units, antennas, distributed server units and small cell products.
3. RAN software: This consists of RAN functions that used to be embedded in hardware
but can now run independently on cloud hardware (these pieces of software are called
virtualised (vNFs) or containerized (cNFs) network functions This category includes new
platforms for automation, management, and orchestration of the RAN elements.
4. Cloud: This category is focused on infrastructure both at edge and core data centres
running Open RAN software managed by cloud orchestrators.
5. Services: This category includes System Integration and testing to ensure that software
and hardware from many suppliers can work optimally together.
6. Development: This includes activities to contribute and build Open RAN ecosystems,
from corporate R&D labs, to incubators, standards organisations, open-source
collaborations and labs that share and validate technology.
3
This study does not explore the state of play for non-European SMEs.
4
This aims to be representative rather than exhaustive. There may be additional companies active in
Open RAN, or the listed companies may be operating in additional segments from those identified here.

of 29
Based on current market trends, the next figure shows the expected size of each value chain
category in 2026.
Figure 3: Open RAN value chain estimation 2025. Companies per category & Assessment per
category
The value chain breakdown in terms of global vendor revenues (Figure-4), shows that services
activities would be the biggest block in expected revenue in the Open RAN value chain, with 38%
of total revenue, followed by RAN hardware (24%), Cloud (18%), Semiconductors (11%) and RAN
software (9%). A global market worth EUR36.1 billion5
in supplier revenues from Open RAN is
opening up by 2026 and is likely to expand at greater pace beyond 2026. The market value can
be split between Open RAN hardware and software (EUR13.2 billion) and the broader RAN
platform (Chips and components, Services, Development and Cloud). The biggest growth is
expected in Services due to new business models and additional efforts to test and integrate
RAN elements from different vendors compared to traditional integrated RAN.
Figure 4. Vendor revenues for Open RAN from 2020 to 2026 by category.
5
Source: Analysys Mason forecast of Open RAN operator spending and vendor revenue, April 2021

of 29
The following analysis shows for each Open RAN technology and service category companies
who are either active or have the potential to become active in Open RAN.
Semiconductor (Chips and Components)
This category contains chipsets of different types to cater for a range of RAN hardware elements.
They include General Purpose Processors (GPP) to support higher layer RAN functions,
Specialised Silicon chipsets for high demand processing workloads, Radio Frequency (RF) Front
End (digital signal processing element inside the Radio Units) and Foundry (integrated circuit
production of chips and semiconductor elements).
In traditional RAN, most of the semiconductors were designed specifically for one vendor only.
In Open RAN, there is a far greater opportunity for chip providers to support equipment from
many vendors, providing opportunities for a wider supplier base. Distributed and centralised
units can be based on General Purpose Processors (GPP) supporting an ARM or Intel x86
architecture but, to meet the high-performance demands of 5G, these will need to be
complemented by accelerators that offload specific tasks. Chipsets may feature components
from several suppliers. Radio Units and active antennas need very high-performance specialised
processors and RF components. With an Open RAN approach, it will be easier for specialist chip
providers to address a broader market of RAN equipment manufacturers demanding those high-
performance chips.
Table 1. Europe’s rating in Chips and Components (Companies profiled in AM Study 2021)
Strong, Moderate, Weak
General
purpose
processors
Specialised
Silicon
chipsets
Radio
Frequency
Front end
Foundry
European
Status
Major vendor
active in Open
RAN
NXP, ARM NXP NXP NXP
SME active in
Open RAN
Accelercomm,
Lime Micro,
Picocom, Sivers
IMA, SRS
Capable of
addressing key
Open RAN
challenges
Infineon, Kalray,
ST Micro
ST Micro
Infineon,
ST Micro
Infineon,
ST Micro, Bosch
Major Non-
European
player
AMD, Intel
Broadcom,
Intel, Marvell,
Nvidia
Qualcomm,
Xilinx
Qualcomm,
Xilinx
Intel, Samsung,
TSMC

of 29
Findings:
▪ Europe has some providers and promising start-ups, but their impact will be small and
fragmented without broad ecosystem support.
▪ Additionally, Europe has a group of specialist semiconductor vendors that are working
on Open RAN in areas such as RF chips and processors optimization to support advanced
functionality and very low latency.
▪ Europe does have a few major semiconductor vendors that could drive scale into Open
RAN and help define future platforms, as well as improving digital sovereignty by
reducing dependency upon non-European providers and security of supply with their
foundries. However, while NXP is developing Open RAN components, ST Micro and
Infineon are currently not.
▪ Moreover, among the global semiconductor players, those from the USA, such as Intel,
Marvell and Qualcomm have a strong global market position, and have been more active
in Open RAN than those from Europe, such as Infineon and ST Micro.
RAN Hardware
This category contains all the hardware elements that are specific to the RAN but are being
developed or modified to support open interfaces to allow them to interoperate with multiple
vendors’ RAN hardware elements, which include radio units, distributed units and centralised
units that are based on specialist semiconductors or general-purpose processors with RAN-
optimised accelerators.
In the past, all antennas were passive elements that send and receive signals to and from
devices. For higher frequency bands, adoption of active antennas increases, resulting from the
introduction of massive MIMO and beamforming techniques. Those need to be integrated with
the radio electronics for performance reasons.
In Open RAN, the radio units will increasingly be built to common specifications that include
common and open interfaces to other RAN elements. Different initiatives will enable many new
companies to compete in the radio unit, which has traditionally been the realm of a small
number of players. In this new competition landscape, some will focus on low cost,
commoditised units and others on maximum performance Massive MIMO products – the result
should be a range of products to suit the needs of any operator or environment.
Small cells have been available for more than a decade but have not become a significant part
of the RAN landscape in Europe. However, many Open RAN hardware providers are targeting
small cells as a first step, as these units are less challenging to bring to market than top-end
macro base station units. Small cells for enterprise deployments are expected to be an important
proving ground for Open RAN and an entry point for new suppliers.
Findings:
▪ The Radio Unit (including active antennas) is the Open RAN value chain category in
which Europe has the largest and most diverse base of vendors. There is a significant
base of expertise and many of the smaller vendors have been part of the supply chains
surrounding Nokia and Ericsson, but are now targeting a broader market, and greater
autonomy.
▪ This provides the potential to make Europe a centre of excellence for this technology,
which could support global platforms and markets, gaining scale as a result of open
interfaces to any vendor’s base stations. US-based RAN software companies cite Europe,

of 29
in particular, as an important source of radio expertise, among vendors and also
universities and operators’ labs.
Table 2. Europe’s rating in RAN Hardware (Companies profiled in AM Study 2021)
Radio unit incl.
active antenna
Distributed
unit
Small
cells
Full RAN (all
elements)
European
Status
Major vendor
active in Open
RAN
Nokia
SME active in
Open RAN
ATL Pharrowtech,
AW2S, Bellantenna,
Benetel, Celestia,
Comlab, Filtronic, RFS,
SRS , Siae
Microelettronica
Benetel
Major Non-
European
player
AceAxis, Airrays
(Xilinx), Airspan,
Baicells, Comba,
Commscope, MTI, STL,
Fujitsu, Gigatera, NTS
Dell, HP,
Kontron,
Supermicro,
CommAgility
Airspan,
ip.ccess
(Mavenir)
RAN Software
In Open RAN, software is disaggregated from hardware, allowing software to run on hardware
from any supplier. Different RAN software modules can be supported by different developers
working together in an integrated way.
An Open RAN network will have a large number of hardware and software elements that will
need to be controlled and managed to deliver the best performance. Baseband components
(distributed and centralized units) manage RAN signalling and control. The RAN Intelligent
Controller (RIC) optimises the radio to suit local conditions and changes in the environment.
Service Management and Orchestration (SMO) automates many RAN processes, simplifying and
automating network provisioning and service assurance.
Findings:
▪ Early trials and deployments have mainly been undertaken by US companies such as
Altiostar (just recently acquired by the Japanese Rakuten Group), Mavenir and Parallel
Wireless. An exception is Belgium’s Accelleran. Nokia has developed Open RAN software
functions, but these currently only run on Nokia proprietary hardware.
▪ The development of the RAN Intelligent Controller has been driven by US and Japanese
companies so far – e.g. NEC and Amdocs – but there is limited activity in Europe with
Nokia, Ericsson and Capgemini developing some of the first implementations.

of 29
Table 3. Europe’s rating in RAN Software (Companies profiled in AM Study 2021)
RAN Software
(O-DU/O-CU)
Radio Intelligent
Controller (RIC)
Management &
Orchestration
European
Status
Major vendor
active in Open
RAN
CapGemini, Nokia
CapGemini, Ericsson,
Nokia,
Ericsson
SME active in
Open RAN
Amarisoft, Celfinet,
IS-Wireless,
Node-H, SRS
Acceleran,
IS-Wireless
Highstreet, Inmanta,
IS-Wireless, Zeetta
Major Non-
European
player
Altiostar, JMA,
Mavenir, Parallel
Wireless, Radisys,
Samsung
Cellwize, HCL,
Juniper, Keysight
Mavenir, NEC,
VMWare
Amdocs, Atrinet,
Ciena, DZS, Juniper,
HCL, Samsung
NEC/Netcracker,
Cloud
This category includes the servers and open software frameworks that have been optimised for
the RAN, such us Open RAN edge platforms, RAN-optimised containers, cloud software and
public cloud to support Open RAN.
In Open RAN, network software for the Distributed Unit (DU) and Centralised Unit (CU) can run
on Commercial-Of-The-Shelf servers from any supplier. However, Cloud platforms are generic
by their nature and some vendors are optimising their hardware or software to target the Open
RAN opportunity.
In some cases, the Open RAN CU and/or DU may run in a public or third-party cloud rather than
the telco’s own cloud. This may be unusual among large operators, but some enterprise Open
RANs will run in the public cloud. Increasing interest by international Cloud providers to host
RAN functionality in the public Cloud may introduce data sovereignty concerns.
Findings:
▪ US companies have a strong market position in relation to generic cloud platforms -
including servers, RAN-optimised container software and public clouds – (though China
has its own ecosystem). Some of the US vendors are adapting their platforms to address
Open RAN functions of the RAN which will require enhanced functionality.
▪ There may be opportunities for European vendors to add further RAN-specific
enhancements to improve their position relative to the global cloud platforms. For
example, Canonical, whose RAN containers framework and Linux implementation are
included in some cutting-edge Open RAN developments including a partnership with
Lime Micro and UK operator BT/EE. Additionally, due to the synergies between Open
RAN and edge data centres, as highlighted already in previous chapter, Europe may have
an opportunity to reduce the gap in cloud space with US providers by advancing both
Open RAN and Edge cloud deployments.

of 29
Table 4. Europe’s rating in Cloud (Companies profiled in AM Study 2021)
Cloud Hardware Cloud Software
Public or third-
party cloud
European
Status
Major vendor
active in Open
RAN
Canonical, SuSE OVHcloud
SME active in
Open RAN
BISDN, Ori,
Rapid.space,
Major Non-
European
player
Dell, HPE, Kontron,
Samsung, Lenovo,
Vapor.io
VMware, Red Hat,
Google, Microsoft
AWS, Microsoft
Azure, Google,
IBM, Oracle
Services
Services will play a significant role in the Open RAN value chain to test and integrate multiple
vendors’ solutions. Many operators will be deploying Open RAN with elements from many
suppliers, but they may lack the resources to integrate all these elements themselves. In
traditional RAN, integration is usually done by the RAN vendor but in Open RAN, the role of the
neutral systems integrator will be greatly enhanced.
An important factor in ensuring that software and hardware from many suppliers can work
optimally together is testing for performance and interoperability before deployment.
Certification of interoperability helps boost operator confidence.
Findings:
▪ NEC is currently one of the most successful System Integrators (SI) in Open RAN.
▪ CapGemini is an active SI and software developer in Open RAN but most of the leading
Open RAN vendor-neutral integrators come from India (e.g. Tech Mahindra, Tata,
Infosys). Large US players are expected to become more active as larger contracts
become available.
▪ In the European ecosystem, there are many smaller SIs and testing companies, often
working on a fairly local basis, that see Open RAN as a strong opportunity to expand
their market and make their services more capable of duplication to drive scale. Some
large industrial companies such as Siemens, JLR and Bosch are also encouraging
integration and testing that is tailored to the enterprise area, and a common framework
would help make Open RAN deployable and useful to many industries.
▪ By 2026, it is expected that Open RAN will account for a substantial portion of the total
5G SI market globally – EUR 13.3 billion in a total segment worth EUR 27.7 billion. It is
worth noting that more than half of this spending will be made to support deployment
of 5G for non-telecom industries.

of 29
Table 5. Europe’s rating in Services (Companies profiled in AM Study 2021)
Systems
integration
Testing
Enterprise
Services
European
Status
Major vendor
active in Open
RAN
CapGemini, Atos,
Reply
Rohde&Schwarz,
Spirent
Nokia, Cellnex
SME active in
Open RAN
Siticom EANTC, SRS
EDZcom, DenseAIR,
Ontix, Freshwave,
Aspire
Major Non-
European
player
Accenture, NEC, IBM,
HPE, Tech Mahindra,
TCS
Keysight, Viavi
Google, Microsoft,
Cisco
Development
This category of the value chain consists of activities that contribute to fostering an Open RAN
ecosystem in Europe, from incubators such as the Telecom Infra Project ecosystem (TIP),
universities with projects focused on 5G and Open RAN, labs set up by operators or sponsored
by governments, to standards organizations such as ETSI or the O-RAN Alliance.
These range from pure research projects in universities or corporate R&D labs, to incubators
that help commercialise some of those findings through start-ups, to the standards
organisations, open-source collaborations and labs that share and validate the technology.
Maximising the impact of all these activities through funding and by creating collaborative
frameworks across the region, and between industry and academia, are important ways through
which policymakers can stimulate the Open RAN ecosystem.
Summary
This study has identified 13 major Open RAN players in Europe compared to 57 major Non-
European players. However, many European players are at an early stage of development and
have not yet secured commercial Open RAN contracts, whilst vendors from other regions are
moving ahead in actual sales, building an advantage that may risk Europe’s future
competitiveness in network technology (see Figure 5).
European vendors are not even present in all Open RAN sub-categories (e.g. Cloud Hardware),
and are outnumbered in almost all categories by Non-European players (e.g. 2 major European
vs 9 major Non-European players in the semiconductor category). This demonstrates important
gaps and weaknesses in the end-to-end European Open RAN ecosystem. This study also shows
that Europe has over 30 SMEs and some larger companies potentially capable of addressing
Open RAN challenges, but their presence is fragmented, and their impact will be further
diminished without broad ecosystem support.

of 29
Figure 5: Open RAN vendor distribution showing companies who had commercial contracts to supply
Open RAN networks in March 2021. There may have been developments since then. Source Analysys
Mason and Bloomberg, March 2021.
The European ecosystem has significantly greater strengths and investment in some value chain
elements than others. In many cases, these arise from existing excellence in technologies such
as active antennas, RAN hardware and systems integration, in the traditional RAN market. The
challenge is to adapt technologies and business models in order to apply them successfully to
Open RAN, and especially to networks that are based on open cloud platforms.
Europe has high degrees of excellence and innovation in certain foundational areas, supported
by large operators, universities, and the community of organisations around Nokia and Ericsson,
but this is not currently translating into a strong commercially deployable ecosystem or
significant commercial contracts in the emerging Open RAN space.
Overall, there is a large gap between US and European providers in different areas of Open RAN
technology. Higher levels of funding are needed to enable promising start-ups to reach scale
more quickly and to fill gaps in the ecosystem, which will otherwise be filled by non-European
companies. This funding should come from multiple sources – direct grants and matched
awards, tax incentives for larger companies to support start-ups, contracts for government
networks and policies to encourage investment in Open RAN.
Large European companies such as chipmakers, systems integrators and industrial organisations
can add weight to the ecosystem and would benefit from incentives to become active in Open
RAN.
Europe’s large non-telecoms industries may drive investment in Open RAN and can identify their
own requirements, which can influence the vertical sector globally, e.g. industrial players such
as Bosch or Siemens.

of 29
Some opportunities that Europe should analyse are:
▪ Create an open network technology roadmap clearly defining targets to fill supply
chain blind spots and linking relevant major players, SMEs/start-ups and RTOs needed
to reach those targets.
▪ Attract major chip suppliers from adjacent sectors on the basis of RAN synergies and
provide high value chips to enhance global platforms.
▪ Encourage development of antennas optimised for expanding Open RAN sectors e.g. in
manufacturing.
▪ Provide funds and open labs to boost rate of innovation by start-ups.
▪ Testing and SI are more critical in Open RAN, so Europe should strive to be a global
center of excellence in these areas.
▪ Develop stronger collaboration frameworks for projects across Europe.
▪ Contribute to the next wave of Open RAN specifications and support standardisation.

of 29
Chapter 3 – Europe at a Crossroads
To date Europe appears to be lagging behind other international markets, despite billions spent
by public network operators in 5G auctions and investments of €56bn in 2020 for radio network
and transmission links6
. The European Commission (EC) estimated in 2016 that a total of €500bn
would be needed to meet the EC’s 2025 connectivity targets, including 5G coverage in all urban
areas7
. Europe’s Recovery & Resilience Facility (RRF) identifies 5G as a flagship area for a
significant share of its targeted €150 billion digital budget to finance 5G network
infrastructures8
, and Europe’s Digital Compass target aims to deliver 5G for all by 2030.
These ambitions demand that networks are deployed quickly and extensively, with a high level
of resilience and flexibility to respond to user needs, with support for the most advanced
capabilities. However, if operators use the same supply chains and platforms as used for 4G,
there will be significant barriers in terms of cost, supply chain robustness, delays and choice
hampering the achievement of EC connectivity targets and thus of Europeans getting the
advanced networks they need to secure social and economic prosperity. Therefore, European
operators are taking a leading role in setting deployment goals for Open RAN. However, while
they have embarked on trials and major commitments, and contributed to standards and
specifications, early projects with the most significant impact are being led by non-European
companies, especially those from the USA, Japan and South Korea. In fact, to date European
operators have no choice but to select non-European partners for their initial trials and
deployments.
As stressed throughout this paper Europe is well-placed to build on its existing capabilities and
know-how and therefore can play a leading role in driving innovative network architecture, but
the key difference is that Europe has not yet identified Open RAN as a strategic priority, whilst
other countries, most notably the US and Japan, are strongly pushing for the new paradigm of
open network architectures focusing on the development of Open RAN. This is likely to increase
the gap in areas where these players already have an advantage and reduce the gap where
Europe has an existing advantage today.
• In the US, in December 2020, Congress passed the USA Telecommunications Act, as part
of its annual National Defence Authorization Act (NDAA), establishing the Public
Wireless Supply Chain Innovation Fund. Through this program, grants may be used to
offset the cost of procuring Open RAN equipment, multi-vendor integration, deploying
security features on open networks, or deploying network function virtualization to
manage an open network. In addition, the legislation created the Multilateral
Telecommunications Security Fund, which establishes a common funding mechanism
with foreign partners to promote the international adoption of secure and trusted
telecoms equipment. Congress is presently considering the levels of funding for these
two programs. The Senate has passed the US Innovation and Competition Act (USICA),
which would fund the Public Wireless Innovation Fund at $1.5 billion and the
Multilateral Telecommunications Security Fund at $500m. The legislation is now
6
https://digital-strategy.ec.europa.eu/en/library/5g-deployment-could-bring-millions-jobs-and-billions-
euros-benefits-study-finds
7
https://www.europarl.europa.eu/RegData/etudes/IDAN/2019/631060/IPOL_IDA(2019)631060_EN.pdf
/ https://ec.europa.eu/commission/presscorner/detail/en/IP_16_3008
8
https://digital-strategy.ec.europa.eu/en/library/5g-europes-digital-and-green-recovery

of 29
pending in the House of Representatives and is expected to pass at similar levels of
funding at some point this year.9
• In Japan, the Government’s the Act on Promotion of Development, Supply and
Deployment of Specified Advanced Information and Communication Technology
Utilization System offers financial incentives and tax benefits to companies that develop,
supply or deploy 5G equipment that meets certification criteria in terms of security,
supply and openness. The Government cites the need for equipment to be interoperable
based on open architecture and utilise international standards to be certified10
. It has
also provided a testing environment through its development of testing techniques as
verification tools for multi-vendor interoperability, which helps save time and reduce
costs. Japanese companies are also becoming active in relation to Open RAN in Europe.
In November 2020, for example, NEC opened an Open RAN Centre of Excellence in the
UK, which will provide engineering support for its global business11
. NEC is also building
a multi-vendor interoperability testing facility as part of the centre to contribute to
enriching the Open RAN ecosystem.
• In April 2021, the US and Japan pledged USD 4.5 billion for a ‘Competitiveness and
Resilience (CoRe) Partnership’ to be invested in the research, development and
deployment of next-generation mobile networks (‘6G’ or ‘Beyond 5G’), including
advancing access to 5G networks via Open Radio Access Networks (Open-RAN)12
.
• In July 2021, the UK launched a GBP30 million Future RAN Competition to fast-track
Open RAN development, and discover and fund talented Open RAN specialists. The
competition is organized by the Department for Digital, Culture, Media and Sports as
part of the UK Government’s 5G diversification strategy13
.
With such strong commitments, the US, UK, Japan and India are bound to drive global demand
for Open RAN, and these countries are supporting their industries in building new ecosystems
ready to compete in future network technology. Critics claim that Open RAN will allow non-EU
players into European markets and therefore put Europe’s digital sovereignty at risk. This is
misleading as it ignores the fact that Open RAN is coming regardless of what Europe decides; it
is a matter of when, not if. The real question is whether Europe wants to lead this new approach
or become a follower. If Europe does not act now, it risks yet another technology gap that would
harm Europe’s future competitiveness in innovative and efficient next generation networks, and
ultimately also risk its leadership and sovereignty in its own region. In fact, Analysys Mason’s
June 2021 forecast shows that if Europe’s operators and industries had to look elsewhere for
Open RAN, this could put EUR 15.6bn of industry revenues, and global influence, at risk.
9
https://www.govtrack.us/congress/bills/116/hr6395/text; https://www.ntia.gov/report/2021/ntia-
report-congress-competitiveness-and-sustainability-trusted-suppliers-wireless
10
ORPC, Case Study in 5G Technology World; https://www.5gtechnologyworld.com/roadmap-helps-
governments-promote-fund-and-implement-5g-open-ran/
11
Chatham House: “UK-Japan digital cooperation on the 5G agenda and
beyond”;https://www.chathamhouse.org/2021/03/uk-japan-digital-cooperation-5g-agenda-and-beyond
12
https://www.whitehouse.gov/briefing-room/statements-releases/2021/04/16/fact-sheet-u-s-japan-
competitiveness-and-resilience-core-partnership/
13
https://www.gov.uk/guidance/future-ran-diversifying-the-5g-supply-chain

of 29
Figure 6. European Open RAN ecosystem revenues 2020-2026, with and without policy
interventions14
To meet future demands for innovative and tailored solutions in a digital economy, Europe
needs a resilient, stable, innovative and competitive selection of vendors for central elements
of Critical National Infrastructure (CNI). The EU’s strategic autonomy interests are therefore best
served by pre-empting another innovation gap. Speed of innovation will be crucial for Europe’s
future competitiveness.
14
Source: Analysys Mason forecasts June 2021

of 29
Chapter 4 – Policy Recommendations
Europe should have the political and industrial ambition to lead in the development and
deployment of next generation mobile networks, encompassing Open RAN initiatives to build
resilient, scalable, interoperable and virtualised Radio Access Networks (RANs) that leverage
cloud technologies, a diverse vendor landscape and flexibility that comes from the open
architecture paradigm.
Supporting the transition towards open and interoperable equipment and networks across the
telecommunications value chain holds the potential to generate significant positive spill-over
effects for the EU’s technology and industrial capacity, most notably in the areas of
telecommunications, cloud, software and microelectronics.
We strongly support the EU’s efforts to reduce current dependencies in these technology areas,
as manifested in the EU’s recent industrial and digital strategy updates, its Digital Compass
Targets and the creation of two new Alliances on industrial data, edge and cloud as well as on
processors and semiconductors. However, digital sovereignty cannot be limited to catching up.
Most importantly, the EU needs to be ready to proactively consider technology areas where
Europe might still be in a strong position today but risks being increasingly challenged or even
disrupted in the future. In this context, building EU capability in Open RAN is essential to
guarantee that Europe can maintain control over vital areas of its critical infrastructure.
When it comes to mobile network technology, the EU can build on the legacy and the strength
of its equipment vendors and mobile operators. If it can focus efforts on a common objective,
Europe will continue to have a leading role in the global race for next generation communication
infrastructure. However, for Europe to become a leader in Open RAN, targeted investments, a
strategic outlook and the right policy framework are needed. Political support is necessary in
the form of an ambitious industrial policy that stimulates and helps create market scale for both
industry operators and vendors. An umbrella initiative at EU level with a clear roadmap could
kick-start a European ecosystem around Open RAN technology.
Open platforms that are supported consistently by all vendors and industry operators are the
only way to achieve an ecosystem that can support diverse operator and industry requirements
while retaining common foundations, which are necessary for achieving economies of scale,
competition and attractive pricing. Closed platforms that favour a smaller set of vendors will
eventually lead to reduced availability of innovative functions and capabilities and throttle the
full potential that a wider ecosystem would bring regarding innovation. An open platform on the
contrary enables many vendors and solutions, each tailored to different requirements and use
cases.
Targeted investments and coalitions are needed in relevant areas, where strategic value is
generated and where Europe is well-positioned to take a leading role. With the following
recommendations, we aim to provide an inclusive and ambitious roadmap with concrete
measures to establish EU leadership in the Open RAN space while also supporting the EU’s
industrial strategy and Digital Decade objectives.

of 29
Recommendations for a strong European Open RAN Ecosystem
We call on policymakers and Administrations to:
1. Ensure high-level political support for Open RAN: European policymakers should
recognise the importance of supply diversification and actively promote the
development of an innovative, open and interoperable telecommunications ecosystem.
This should also be reflected in future updates of the EU Digital Compass, by including
the development of Open RAN as a strategic priority for the EU’s Digital Decade. The
European Commission together with EU Member States can take an active role in
bringing together relevant stakeholders, including MNOs, traditional vendors, start-ups
and wider industry to safeguard and promote Europe’s competitiveness and technical
leadership as a basis for future European digital sovereignty. It is recommended that a
dialogue between the EU Commission, Member States and industry stakeholders leads
to a joint public statement supportive of Open RAN. Europe needs to talk with “a
common voice” related to Open RAN, and the consolidated view has to be made public
and promoted.
2. Create a European roadmap for network innovation: We encourage the European
Commission to create a European Alliance on Next Generation Communication
Infrastructures as it has done for Cloud and Semiconductors, which are all vital enablers
for a whole range of industries and therefore critical for fostering European innovation
and building a greener, inclusive and more competitive future.
The European Alliance on Next Generation Communication Infrastructures would assess
network technologies that are of utmost importance to Europe’s future, and create a
strategic roadmap and action plan to embrace emerging technologies starting with
Open RAN. The roadmap and action plan should implicitly drive and be reflected in
European associations and initiatives such as the IPCEI on Microelectronics &
Communication Technologies, the 5G Industry Association, Joint Undertaking on Smart
Networks & Services and multi-country projects. This would identify and guide strategic
policy and funding activities at national and EU level to:
o Ensure a coherent strategy for the development of a strong EU ecosystem
around innovative network technologies such as Open RAN, supporting R&D
projects and collaboration between large and small companies in the EU (as
recommended by the EC 5G Supply Market Trends report August 2021).
o Define IPCEIs and other funding opportunities in a way to allow the
implementation of projects related to modern communication technologies
such as Open RAN.
o Provide a European development and system integration platform to support
supplier options for smaller operators (as recommended by the EC 5G Supply
Market Trends report August 2021).
3. Incentivise and support EU Open RAN development: This paper identifies a number of
specific technology areas which are strategically significant for the future of the EU
communications industry and which promise to generate significant economic benefits
and positive spill-over effects. Policymakers should reduce investment risk for EU
vendors and start-ups, and support EU partnerships, testbeds and trials with local and
EU funding (for example through Horizon Europe) and tax incentives (helping to address

of 29
the lack of venture capital in the European small business ecosystem as recommended
by the EC 5G Supply Market Trends report August 2021). This can guide EU vendors and
start-ups in prioritising capabilities that are important to Europe, mobilise vendors by
investing in foundational technologies and developing ecosystems around them (at the
same time investing in local skills and jobs). Annex-A describes areas that can serve as
priorities for investment, public funding, incentives and policy support. Across all areas
it will be important to examine strategic take-overs of European companies, including
start-ups, by large non-European companies (as recommended by the EC 5G Supply
Market Trends report August 2021). Finally, in order to translate the more detailed
recommendations for Open RAN development set out in Annex-A into concrete actions,
it is recommended that the European Commission and National Governments allocate
funds for consortium projects that allow European companies to create strong
partnerships and become viable players in the Open RAN value chain.
4. Promote European leadership in O-RAN standardisation: Promote and support formal
cooperation between 3GPP, ETSI15
and the O-RAN Alliance (as recommended by the EC
5G Supply Market Trends report August 2021) by supporting adoption of O-RAN
specifications as voluntary standards by ETSI, in complement to existing 3GPP
specifications. Support the introduction of a globally harmonised set of standards for
Open RAN (as recommended by the EC 5G Supply Market Trends report August 2021),
which ensures the openness and interoperability of network equipment. The upcoming
EU strategy on standardisation should also provide new impetus for a stronger and more
structured strategic dialogue between government and industry on standardisation, for
example, by providing funding to support European contributions to O-RAN standards.
Establish pan-European certification for Open RAN interoperability and quality to build
deployer and ecosystem confidence. This will support risk assessment schemes for
vendors in the 5G supply chain based on clearly operationalized and transparent
security measures.
5. Engage in international partnerships: Work with international partners to promote a
secure, diverse, and sustainable digital and ICT supply chain. The EU should make use of
formats such as the G7, the EU-US Trade and Technology Council and the Japan-EU ICT
Dialogue to advance the development and deployment of open and interoperable
network architectures, alongside key allies and partners. To this end, the EU should
consider supporting the creation of a multilateral fund for the adoption of secure, open
and interoperable network equipment in third countries. Develop a vision for next
generation mobile networks (e.g. 6G) and use cases, not just for short term
deployments, and channel R&D funding and resources towards projects and start-ups
that will support that vision e.g. EU funding for RISE-6G and Terapod projects, among
others.
15
ETSI and O-RAN cooperation agreement should expand to include a fast-track procedure to accept O-
RAN Alliance specifications as ETSI standards

of 29
Chapter 5 – Conclusion
COVID-19 has accelerated the digitalisation of almost every single aspect of our lives and jobs.
It is now undeniable that communications networks are fundamental infrastructures that can
be considered the backbone and heart of our economies as every process in the digital age relies
on them. There is a wide consensus that future networks will represent a revolution instead of
a mere evolution. An open architecture philosophy is needed to support this.
In a digitised world, companies from all sectors will thrive where they have access to next
generation networks enabled by a dynamic and innovative ecosystem. It is of utmost importance
for Europe’s digital sovereignty, technological leadership and economic and competitive
progress to foster the development of an Open RAN ecosystem.
This requires a forward-looking strategy that allows for the development of modern network
architecture such as Open RAN, which increases resilience, stabilises the supply chain and allows
innovation to cater for the diverse connectivity needs that 5G and 6G will introduce. An open
platform enables many vendors and solutions, each tailored to different requirements and use
cases. Moving from a closed to an open architecture is essential if Europe wants to continue
leading in the telecoms industry and avoid a technology gap that will be hard to close. Its best
opportunity to defend and grow its place in the global 5G and 6G industry lies with building a
broad and deep European Open RAN ecosystem.
The Open RAN ecosystem is in its early stages. Some standards have yet to be developed and
the first phase of deployments and trials are largely small-scale. Therefore, Europe has an
opportunity to shape Open RAN and defend or increase its traditional position of strength in the
mobile networks market. It has a significant base of large and small companies that are active in
Open RAN or have the skills to enter the market quickly. To build a strong European ecosystem,
however, requires urgent action: Europe needs to make Open RAN a strategic priority, include
it as a pillar in its Industrial Policy and Digital Decade and underpin it with the right policy
framework.
If we make sure the right conditions are met, it is possible to nurture a European Open RAN
ecosystem that safeguards Europe’s competitiveness and leadership in network technology and
contributes to Europe’s digital sovereignty. This is a unique and time sensitive opportunity for
European industry and policymakers. Engaging early will ensure that Europe maintains a crucial
global role in the next generation of mobile network technology, which is why the MNOs who
signed a MoU on Open RAN encourage European policymakers and Administrations, industry
and vendors(both new and existing) to participate and, together, help build a vibrant ecosystem.
In addition, strengthening competences in the Open RAN value chain in Europe will have
favourable spill over effects for fixed line disaggregated network infrastructure and other vital
technology areas such as cloud, software and chipsets. This will significantly contribute to the
wider technology ambitions of a digital Europe.

of 29
Annex-A- Building an Open RAN Ecosystem for Europe
November 2021
Priorities for investment, public funding, incentives and policy support based on the structure
& taxonomy in Chapter 2.
Semiconductor (Chips and Components)
▪ There are increased opportunities for specialist chip providers to achieve growth by
contributing to a multi-vendor chip platform for RAN elements, or to license specialist IP.
This can be facilitated by supporting common platforms at the semiconductor level.
▪ Synergies between 5G and the automotive industry may help to attract suppliers with a large
presence in the automotive sector, such as Infineon, into the RAN market, and this would
help safeguard Europe’s access to semiconductor suppliers across sectors. These should be
actively explored and encouraged via cross-industry initiatives and funding, and potential
tax incentives for tier one developers and foundries.
▪ To support Europe’s fabless semiconductor suppliers, the EU could invest in local foundry
capacity and foster strong alliances with multiple global foundries in multiple locations, in
order to secure multiple supplies of RAN chips. In March 2021, the European Union set a
target of producing 20% of the world’s semiconductors by 2030, including the most
advanced technologies (most European manufacturers focus on mature technologies).
▪ The IPCEI on Microelectronics (ME) and Communication Technologies is a potential vehicle
to support Open RAN within the broader ME industry and to facilitate synergies between
the telecommunication industry and chip providers already addressing other industries such
as automotive.
RAN Hardware
▪ There are increased opportunities for specialist radio or antenna providers to achieve
growth by contributing to a multivendor platform, or to license specialist IP. These can be
facilitated by supporting common platforms and facilitating alliances with global partners
via testbeds and labs.
▪ As non-telco industries increasingly use 4G/5G networks, there will be opportunities to drive
new revenues for European technology through enterprise channels and ecosystems. For
instance, the German and Dutch manufacturing industries are actively planning 5G networks
and creating their own supply chains to support that. They could be encouraged to buy local
technology with tax credits or other incentives.
▪ Some countries, such as India, are adopting rules to try to force operators and other
industries to buy local technology. Mandates would be unwelcomed in Europe, but in some
areas where the region does have leading edge technology, there may be financial or other
incentives to be considered, to encourage large buyers to choose local partners.
▪ As in the semiconductor sector, it is important for a strong hardware ecosystem to have
manufacturing and assembly capacity that is secure and local. This reduces cost and
improves technical self-sufficiency for the region. Policymakers should consider ways to
fund local contract manufacturers such as Philtronics to be able to support large-scale
requirements and to focus on Open RAN.
▪ Some European companies such as Picocom and Accelleran are leading development of
Open RAN small cells that support O-RAN and Small Cell Forum interfaces. Policymakers
should support such efforts in order to secure differentiation in the small cell and private
network platforms, especially to address the demand for a choice of interfaces between
radio unit and baseband.

of 29
RAN Software
▪ Fund operator-led creation of a European Open RAN software framework and offer
incentives for start-ups to develop xNFs (software components for RAN agnostic to
hardware). The same approach could be taken specifically for the RIC, with development of
a standards-based RIC platform optimised for European needs and with active
encouragement of start-ups to develop xApps.
▪ If traditional vendors fully embrace Open RAN interfaces and develop AI based optimisation,
it will unlock a significant global opportunity.
▪ Facilitate building of Open RAN software ecosystems that extend beyond telecoms e.g. forge
ties between industrial Open RAN supporters like Bosch and software developers; provide
grants to accelerate some companies’ migration of specialised protocol stacks that have
strengths in vertical markets, for Open RAN (e.g. SRS in public safety and satellite).
Cloud
▪ In this early stage of the market, it is possible that a Europe-centric Open RAN cloud platform
could be created with active support from operators and governments in the form of
testbeds, R&D credits and funding. For instance, key enablers such as Canonical Linux could
form the framework for a telco-optimised cloud, and this would encourage far greater levels
of development of RAN software by local suppliers.
▪ Provide incentives for enterprises and industries to use this cloud to support their Open RAN
deployments, where they want to use a third-party cloud, rather than the public cloud. It
would provide the cross-border capabilities that individual national telco clouds or other
providers may not.
▪ Provide funding for innovators with leading technology in the traditional RAN market to
accelerate their migration to cloud platforms.
▪ Identify gaps in the current cloud platform and ecosystem, when it comes to the specialist
performance requirements of RAN, and support start-ups or academic projects that could
address those gaps.
▪ Start considering the likely requirements and use cases of 6G and identify areas in which
Europe could establish leadership, then actively fund initiatives, projects and vendors to
compete on equal footing with US cloud companies.
Services
▪ Consider establishing a European certification scheme for Open RAN interoperability and
quality, which could build confidence among European ecosystem players and deployers,
but also become a globally recognised scheme.
▪ Facilitate strong links between the telecoms industry and Systems Integrators in vertical
markets that are focused on 5G, to build expertise and excellence that can be exported to
these verticals elsewhere. International players such as CapGemini, Bosch and Siemens
could leverage their global ecosystems to support European Open RAN developments,
provided these are optimised for their industry’s purposes (compare GE’s similar activity
with IoT platforms in the 2010s, which received US government funding and heavily
favoured local partners).
▪ Use the global influence of the EU to position Europe as global testing hub for Open RAN
and multivendor 5G, which would build new links with government and industry initiatives
elsewhere. Use these links to support R&D investments in areas such as security standards
and certification, across the whole supply chain (as recommended by the EC 5G Supply
Market Trends report August 2021).
▪ Plan major government and public sector Open RAN projects and prioritise local integrators
provided they, in turn, prioritise European suppliers, in order to build confidence and real-
world experience.

of 29
Development
▪ Take best practice from funding and technology transfer mechanisms in markets where
Open RAN development is progressing quickly such as the USA’s National Science
Foundation (e.g. Open RAN projects at the Universities of Utah and Michigan funded by the
PAWR programme), and DARPA. Note that several European start-ups said their largest
funding was coming from the USA, especially DARPA.
▪ Continue the Enhanced EIC programme (including the EIC Accelerator) and explicitly open it
to applications from young, high-risk, R&D-intensive entrepreneurs that focus on 5G-related
technologies and business models (as recommended by the EC 5G Supply Market Trends
report August 2021)
▪ Establish more government-funded or public/private testbeds, trials and incubators to
accelerate the rate of innovation and enable larger numbers of innovations, such as
enhanced R&D on the use of renewable energy sources for supplying network elements and
reduction of the environmental footprint of mobile networks (as recommended by the EC
5G Supply Market Trends report August 2021).
▪ Identify gaps in the current Open RAN platform and ecosystem, and specifically fund and
support start-ups or academic projects that could address those gaps such as funding audits
for critical open-source technologies and might require specific security-related
improvements through public resources (as recommended by the EC 5G Supply Market
Trends report August 2021)
▪ Start considering the likely requirements and use cases of 6G and identify areas in which
Europe could establish leadership, then actively fund projects and start-ups in these areas.
▪ Ultimately, increase opportunities for specialist providers to achieve growth by contributing
to common platforms, foster alliances with global partners to increase capacity across
multiple locations, encourage EU manufacturing industries that use 4G/5G networks to use
the same ecosystem for added scale and facilitate strong links between the telecoms
industry and systems integrators in vertical markets that use 4G/5G.
End

of 29
Glossary
3GPP 3rd Generation Partnership Project
5G 5th
Generation
6G 6th
Generation
AI/ML Artificial Intelligence/Machine Learning
CNF Cloud native Network Function
cNF containerized Network Function
CoRe Competitiveness and Resilience
CP Control Plane
CPRI Common Public Radio Interface
CU Central Unit
DARPA Defence Advanced Research Projects Agency
DU Distributed Unit
EIC European Innovation Council
ETSI European Telecommunications Standards Institute
EC European Commission (EC)
GDP Gross Domestic Product
GPP General Purpose Processors
GSMA Global System for Mobile Communications Association
ICT Information Communication Technology
IPR Intellectual Property Rights
Massive MIMO Massive multiple-input multiple-output
MEC Multi-access Edge Computing
MNO Mobile Network Operators
NF Network Function
NIST National Institute of Standards and Technology
NR New Radio
NR-RIC Near Real Time RIC
O-RAN Open Radio Access Network
ORPC Open RAN Policy Coalition
PAWR Platforms for Advanced Wireless Research
PNF Physical Network Function
RF Radio Frequency
RAN Radio Access Network
RIC RAN Intelligent Controller
RRH Remote Radio Head
RRU Remote Radio Unit
RT-RIC Real-Time Radio Intelligent Controller
SMO Service Management and Orchestration
TCO Total Cost of Ownership
UE User Equipment
VNF Virtualized Network Function
xAPP AI/ML based applications for Near Real time RAN Intelligent Controller
xNF Containerized and virtual network functions

BUILDING AN OPEN RAN ECOSYSTEM FOR EUROPE

More Related Content

What's hot (20)

Similar to BUILDING AN OPEN RAN ECOSYSTEM FOR EUROPE (20)

More from DESMOND YUEN (20)

Recently uploaded (20)

BUILDING AN OPEN RAN ECOSYSTEM FOR EUROPE