On the RAN: The State of Next

Generation RAN Transformations

Survey Report, Fall 2021
 Table of Contents

Introduction and Key Findings .............................................................................................................................................................. 3

Automation and AI .................................................................................................................................................................................. 6

State of and Timeline for Technology Implementations ............................................................................................................................ 7
Automation Level (New Cell Site Rollouts, Configuration and Optimization) ............................................................................................ 8
Top Barriers to Reach High Levels of Automation/AI ................................................................................................................................. 9

Open RAN ............................................................................................................................................................................................... 10

Top Business Justifications for Implementing Open RAN......................................................................................................................... 11
Plans for the Traditional RAN Networks (e.g., 4G) and Network Components ........................................................................................ 12
Strategy for Orchestrating & Automating Multi-Architecture Networks (12-24 Months)....................................................................... 13
O-RAN SMO Component Most Valued Characteristics ............................................................................................................................ 14

Telco Cloud .............................................................................................................................................................................................. 15

State of Telco Cloud Transformation Plans & Implementation by Company Size ................................................................................... 16
Top Complexities Encountered So Far During Telco Cloud Plan Implementation ................................................................................... 17
Top Business Drivers for Cloud Transformation Plans.............................................................................................................................. 18

Network Slicing .......................................................................................................................................................................................19

Demographics ......................................................................................................................................................................................... 21

About Cellwize ....................................................................................................................................................................................... 22

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On the RAN: The state of next generation RAN transformations
Introduction and
Key Findings
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On the RAN: The state of next generation RAN transformations
 Introduction & Methodology

RAN is currently going through major transformation. IDC expects the total 5G and 5G-related network infrastructure market (5G
RAN, 5G NG core, NFVI, routing and optical backhaul) to grow from approximately $528 million in 2018 to $26 billion in 2022 at a
compound annual growth rate (CAGR) of 118%. This is largely enabled by RAN cloudification and intelligent automation. Are these
estimations a strong reflection of the market? In short - what is the current state of the next-generation of RAN implementation?
This was the question we were looking to answer when we launched this survey of global 75 Telecommunications executives and
senior managers in engineering and operations. We spoke to respondents from North America, Europe and Asia-Pacific, all of whom
work in companies with more than 10,000 employees. The survey was commissioned to independent survey company, Global
Surveyz, and the responses took place during September 2021.
The results paint a fascinating picture of the state of global RAN transformation, and the upcoming trends for 2022 and beyond.
Automation is a top item on the roadmap, but 97% of companies are facing roadblocks in implementation. With the rollout of 5G,
drivers for Open RAN are changing, and projects are no longer focused on cost-savings alone. While telco cloud and network slicing
initiatives are in their early stages, as operators tend towards evolving their networks into a more hybrid and complex reality, we can
already see that 40% have already started to build a strategy around that blend of both traditional and NextGen networks.

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On the RAN: The state of next generation RAN transformations
 Key Finding

1 AI and automation are a top priority to enable the next generation of RAN
Automation and AI are mandatory technologies that are already well established in the market, with all respondents either already
utilizing or planning for automation. However, in all areas, automation maturity was self-evaluated to be between 48% (parameters
rule enforcement) and 53% (RAN CCO). Customers recognize that they have made a lot of progress – but there is significant work to
be done.

2 97% of companies are facing challenges in implementing automation

The top three challenges for today’s organizations are the usual suspects of culture (organizational resistance to change was the top
challenge at 63%), technology, (insufficient AI platform came in joint second at 55%), and skills (a lack of workforce skills was also
called out by 55% of respondents).

3 With the growth of implementation of open RAN, drivers are changing

Traditionally, we would expect to see reduced CAPEX and OPEX as the main justifications for Open RAN. However, as the market
matures, the top drivers for today’s operators are now, quickening time-to-market for new revenue opportunities (63%), increased
5G coverage (53%), and enhanced QoS (52%).

4 40% of operators have a clear strategy for both traditional and Open RAN networks
95% of operators have plans to change their network mix over the next few years, decommissioning some traditional networks and
implementing some 5G. However, many operators haven’t thought ahead to how they will manage their new mix of networks. In
fact, only 40% have a plan for a holistic SMO that will cover 2G-5G and Open RAN. If you’re part of the 60% - it’s time to pay
attention.

5 Telco cloud implementation is more advanced in larger organizations of 50k+

Telco cloud implementation is on everyone’s roadmap, with 100% of respondents saying they have plans for implementation in
place, and 66% already 3-4 years into their roadmap. However, 75% of companies who have already started the deployment of their
telco cloud are large organizations with more than 50k employees.

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On the RAN: The state of next generation RAN transformations
Automation and AI
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On the RAN: The state of next generation RAN transformations
 State of and Timeline for Technology Implementations

RAN lifecycle automation is the top

Already Plan to implement
technology already implemented by 32% of implementing within 1-2 years
survey respondents. 29% of respondents are RAN lifecycle automation 32% 29%
planning to implement it within 1-2 years.
Operators are investing in AI and automation
Open RAN 24%
as an essential component as they engage 19%
with 5G rollouts.
Network Slicing (first use case) 15% 43%
This is followed by Open RAN, already
implemented by 19% and planned to be
implemented by the rest within 24 months. RAN cloudification 13% 43%

Additional advanced technology

5G NSA network rollout 8% 41%
implementations, such as Network Slicing,
RAN cloudification and 5G network rollouts
are expected to be more heavily enhanced 5G SA network rollout 7% 33%
within 1-2 years.
Figure 1. State of and Timeline for Technology Implementations

*Each row in the chart was asked as a separate

question. Percentages will not add to a 100%

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On the RAN: The state of next generation RAN transformations
 Automation Level (New Cell Site Rollouts, Configuration and Optimization)

Survey respondents self-evaluated their

51% Average
company’s automation level in three areas:
53%
52%
• New cell site rollout (e.g., from pre- 51%
activation configuration to activation and 50% 50%
49%
post-activation testing) 48%
• MNO best practice parameters rule
enforcement (executing parameter
datafill configuration)
• RAN optimization in multiple categories
In all three areas, the level of automation
was evaluated to be between 48% for
parameters rule enforcement to 53% in RAN New cell Parameters PCI ANR RSI CCO Traffic
CCO (Figure 2). Respondents feel that they site rollouts Rule Steering
Enforcement
have a significant way to go, and recognize RAN Optimization
that automation is a journey.
Figure 2. Automation Level Self-Evaluation (New Cell Site Rollouts, Configuration and
When comparing weighted averages by Optimization)
region, it’s interesting to see how different
regions reflect on their own automation
Parameters RAN Optimization
maturity. For example, North American New cell
Rule Traffic
rollouts PCI ANR RSI CCO
respondents seem to evaluate themselves as Enforcement Steering
less automation-ready, which reflects their NA 48% 45% 46% 47% 43% 50% 44%
ambition to be in a better place and possibly
APAC 61% 63% 66% 63% 72% 68% 61%
invest in these areas more heavily over the
next 1-2 years, as new technology and EU 60% 51% 60% 72% 62% 59% 68%
architecture investments are being made in
Figure 3. Automation Level Self-Evaluation by Region
areas such as 5G and Open RAN. (Figure 3).

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On the RAN: The state of next generation RAN transformations
 Top Barriers to Reach High Levels of Automation/AI

97% of survey respondents said there are

facing barriers to reach high levels of
automation and AI. Organizational culture resistance 63%

These barriers point to the "usual mix" of

challenges that we see many organizations
facing – culture, skillset and technology. Insufficient automation/AI platform 55%

The top barriers are organizational cultural

resistance (63%), followed by insufficient Workforce skills (e.g., process analysis,
55%
automation/AI platform (55%) and lack of automation implementation)
workforce skills such as process analysis and
automation implementation (55%).
Lack of defined strategy and plan 51%

Unexpected operational costs 48%

Managed services vendors resistance (who

24%
manage current processes)

Nothing is hindering us from reaching a high 3%

level of automation/AI

Figure 4. Top Barriers to Reach High Levels of Automation/AI

*This question allowed more than one answer and as
result, percentages will add up to more than 100%

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On the RAN: The state of next generation RAN transformations
Open RAN
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On the RAN: The state of next generation RAN transformations
 Top Business Justifications for Implementing Open RAN

99% of survey respondents have business

justifications for implementing Open RAN. Faster time-to-market for new, innovative
63%
services/monetization opportunities
The top justifications are faster time-to-
market for new, innovative services and
monetization opportunities (63%), followed Increase 5G coverage and enter new
53%
geographies or rural areas
by increased 5G coverage and the ability to
enter new geos or rural areas (53%) and
enhancing quality of service (52%). Enhance Quality of Service 52%

Traditionally, the top drivers were CAPEX and

OPEX savings, but it appears that the market Streamline operations - enhance AI/ML
43%
has matured past cost savings alone. techniques to automate operations

As we are no longer in the initial research

Reduce RAN vendors lock-in and enjoy “mix-and-
stages, but moving onto the actual match” radio elements
37%
implementation stage, and as 5G networks
are being rolled out in parallel, operators
may be realizing that networks could soon be CAPEX savings 27%
decommissioned, 5G is rolling out fast and
that customer demands will dictate the need
for increased QoS and coverage. OPEX savings 24%

We don’t have a good business justification for

1%
Open RAN

Figure 5. Top Business Justifications for Implementing Open RAN

*This question allowed more than one answer and as
result, percentages will add up to more than 100%

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On the RAN: The state of next generation RAN transformations
 Plans for the Traditional RAN Networks (e.g., 4G) and Network Components

95% of operators have plans to

No current plan to
decommission some or all of their traditional decommission; they will
RAN networks, for example 2G and 3G stay with us at least for
networks. 58% plan to decommission the next 5 years
5%
networks during 2022 and 40% say that will
do so by 2024-2025, as 5G is rolled out.
The vast majority of operators clearly see
that their network mix is changing, for
example that they will need to be
Plan to decommission
decommissioning some of their 2G/3G or some or all of them by
even 4G networks and implementing 5G non- 2024-2025, as 5G will be Plan to
rolled out decommission
standalone or standalone ones, and are some or all of
40%
planning for these significant shifts over the them during 2022
next few years. 55%

Figure 6. Plans for the Traditional RAN Networks (e.g., 4G) and Network Components

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On the RAN: The state of next generation RAN transformations
 Strategy for Orchestrating & Automating Multi-Architecture Networks (12-24 Months)

We asked survey respondents what their

No developed strategy yet, focusing
strategy is for orchestrating and automating on researching O-RAN SMO
multi-architecture networks (2G/3G/4G 1%
alongside 5G and Open RAN) over the next
12-24 months.
40% have already put a plan in place to
implement a holistic Service Management
Orchestration solution that works with both Plan in place to
implement a holistic
traditional and Open RAN, effectively SMO solution for
managing the complex mix of networks. both traditional &
Plan in place to Open RAN
The rest (53%) either have a plan to implement an SMO 40%
implement an SMO solution for O-RAN only, solution for O-RAN only
or they don’t have a developed strategy yet 52%
(1%). These companies need to adopt a
hybrid strategy or they will be left
unprepared for the upcoming changes.
SMO solution already
implemented and in
production
7%

Figure 7. Strategy for Orchestrating & Automating Multi-Architecture Networks (12-24

Months)

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On the RAN: The state of next generation RAN transformations
 O-RAN SMO Component Most Valued Characteristics

The most valued characteristic of an O-RAN

SMO Component is a state-of-the-art non RT-
RIC, including a built-in rApps marketplace State of the art Non RT-RIC, including a built-in
67%
rApps marketplace
(67%). Operators want an environment
within their platform that allows them to
code, provision and monetize their own RAN lifecycle automation, powered by AI/ML
automation applications. capabilities (e.g., design, configuration, 60%
optimization )
This was followed by RAN lifecycle
automation, powered by AI/ML capabilities
such as design, configuration and NSSMF (Network Slice Subnet Management
55%
optimization (60%), and NSSMF (Network Function) capabilities
Slice Subnet Management Function)
capabilities (55%). To achieve these goals,
operators need a holistic SMO with advanced Multi-architecture orchestration (e.g. traditional
53%
orchestration and automation capabilities RAN, vRAN, Open RAN)
such as the ones described above.

Multi-vendor orchestration enabling effective

44%
interoperability

Infrastructure visibility (across PNF/VNF/CNF)

and the ability to scale compute resources up 16%
and down

Figure 8. O-RAN SMO Component Most Valued Characteristics

*These questions allowed more than one answer and
as result, percentages will add up to more than 100%

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On the RAN: The state of next generation RAN transformations
Telco Cloud
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On the RAN: The state of next generation RAN transformations
 State of Telco Cloud Transformation Plans & Implementation by Company Size

We asked survey respondents when they 10-20K employees 66%

started to define their telco cloud 20-50K employees 51%
transformation plans (defined as a long-term 50K+ employees
plan to move network and RAN workloads to 11%
the cloud). 32%
21%
100% of companies have plans in place and 10%
66% started their plans at least 3-4 years ago. 15%
11%
When looking at those that started their 19% 10%
0% 3% 11% 2%
plans 5 years or more ago, we see these are 3%
mostly the large companies (50K+ Did not yet start to Less than 1 year 1-2 years ago 3-4 years ago 5 years or more
employees), counting for 66%. (Figure 9). define a plan ago ago

As for their current implementation, 72% are Figure 9. State of Telco Cloud Transformation Plans by Company Size
at the stage where they have approved the
business case and are getting ready to
implement.
Definition stage 1%
From the 8% that are already in the
deployment phases, most are large Approved business case 19% 27% 8% 27%
companies (50K+ employees), counting for Conducting trials 6% 7% 9% 21%
75%. (Figure 10).
Defined approach 8% 10% 5% 24%

Started implementation 6% 7% 5% 17%

Deployed cloud infrastructure 2% 6% 8%

Fully deployed in production 1%

10-20K 20-50K 50K+
*Percentages on these do not add up to 100% due to
rounding up of numbers Figure 10. State in Implementing Telco Cloud Transformation Plan by Company Size

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On the RAN: The state of next generation RAN transformations
 Top Complexities Encountered So Far During Telco Cloud Plan Implementation

100% of survey respondents are running into

complexities during implementation.
Security (in public/private/hybrid cloud) 49%
The top challenges are cloud security (49%),
migrating legacy NFs to the cloud (47%) and
Migrating legacy NFs to the cloud 47%
workforce cloud-related skillset (44%). These
mirror the earlier challenges in implementing
automation – technology, culture, and skills. Workforce cloud-related skillset 44%

VNFs/CNFs maturity 41%

Integration complexities (e.g., multiple clouds,

40%
cloud to on-premise)

RAN orchestration & automation platform 33%

VNF/CNF components interoperability 33%

Organizational resistance 11%

We don’t have any complexities 0%

Figure 11. Top Complexities Encountered So Far During Implementation

*This question allowed more than one answer and as
result, percentages will add up to more than 100%

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On the RAN: The state of next generation RAN transformations
 Top Business Drivers for Cloud Transformation Plans

The top business drivers for cloud

transformation plans are business agility - Business agility 63%
the ability of an organization to renew itself,
adapt and change quickly (63%), service Service agility 53%
agility - the ability to quickly develop more
and more innovative products/services (53%) Reduced vendor lock-in 44%
and reduced vendor lock-in (44%).
Generate new revenue streams 36%

CAPEX reduction 35%

Improved operational efficiencies 35%

OPEX reduction 32%

Figure 12. Top Business Drivers for Cloud Transformation Plan

*This question allowed more than one answer and as

result, percentages will add up to more than 100%

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On the RAN: The state of next generation RAN transformations
Network Slicing
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On the RAN: The state of next generation RAN transformations
 Network Slicing

Over half of respondents (54%) are planning to offer 5G network slicing within 2 years (Figure 13).
The top challenge in implementation and operation of network slicing is end-to-end slice orchestration, from instantiation through
to ongoing management and assurance (52%). This was followed by maintaining slices’ unique SLA and Quality of Service (52%) and
maturity/clarity of industry standardization (52%).

54% End-to-end slice orchestration 52%

45% 45% Maintaining slices’ unique SLA and

52%
Quality of Service

Maturity/clarity of industry
52%
standardization
Optimal spectrum management as an
enabler for the maximal number of 48%
slices
Business interoperability (the ability of
multiple business units and their 44%
systems to work together)
9%
Lack of edge computing resources 29%

Security 17%
In the next 12 months In 1-2 years In 2-4 years

Figure 13. ETA for Offering 5G Network Slices Figure 14. Top Challenges in Network Slicing Implementation and
Operation
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On the RAN: The state of next generation RAN transformations
 Demographics

63%

28%

9%

10,001-20,000 employees 20,001-50,000 employees 50,000+ employees

Figure 15. Company Size by Number of Employees

Operations
1%

C-suite Manager
20% 13%

Director
VP
Engineering 38%
29%
99%

Figure 16. Role Figure 17. Seniority

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On the RAN: The state of next generation RAN transformations
 About Cellwize

Cellwize is all about enabling the networks of the future today. With CHIME, our cloudified and AI-driven RAN automation and
orchestration platform, we enable mobile network operators (MNOs) to accelerate 5G network deployment and go-to-market, as
well as the ROI on their network investments. Even in the most complex and dynamic of network environments, CHIME enables
operators to connect to any application and any vendor, as well as co-create on top of the platform, delivering unprecedented ease,
speed, and agility. With the future of 5G already here, CHIME is helping leading MNOs all over the world to launch and leverage their
next generation networks and face the future with confidence.

Contact Cellwize

For more information, please visit us:

Phone: +1 (613) 878-6796 | Email: info@cellwize.com

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On the RAN: The state of next generation RAN transformations