Vodafone and Samsung, Dell and NEC reached the first “open RAN” deal

After British Telecom awarded Europe’s first major “open RAN” contract to numerous alternative suppliers, Vodafone has turned to Japanese and American suppliers to fill the gaps Huawei left in its 5G supply chain.

The operator has handed over contracts to Samsung Electronics, NEC, Dell and Wind River to build Europe’s first commercial “open RAN” network. French consulting group Capgemini and American Keysight will focus on network integration.

As telecommunications companies seek smaller suppliers to build 5G networks, the contract provides a huge boost for Samsung and NEC. These two Asian equipment suppliers have been struggling to compete with Huawei, Ericsson and Nokia in the 4G era.

The concept of “Open RAN” may break the shackles of the largest telecommunications equipment supplier in the wireless market, which tightly bundles proprietary hardware and software. The open system allows small and potentially innovative suppliers to enter the 5G market, and after banning the largest package supplier Huawei from participating in 5G networks, the US and UK governments have been supporting it as a way to increase competition.

The British government last year decided to ban the use of Huawei’s new equipment in 5G networks from 2021 and phase out existing equipment by 2027, which prompted operators including Vodafone and Telefónica to accelerate the use of radio equipment to replace suppliers plan of.

The British government and the European Commission have promoted the concept of “open RAN” by opening up a large amount of telecommunications spending to smaller local hardware and software providers as a way to promote the development of their technology industry. Both the British and German governments have provided public funds for the development of open RAN technology, but have not subsidized companies such as Vodafone to replace Huawei equipment.

In view of the fact that Ericsson and Nokia, the two largest technology companies in Europe, have provided alternatives to Huawei, this has caused tensions in the industry.

However, Vodafone’s initial contracts were awarded after months of testing with different open RAN vendors, but have been awarded to vendors in Asia and the United States. The company said it may consider using European suppliers in the future. “With the support of the European Commission and the political and industrial policies of EU governments, Open RAN is likely to bring more European companies into this emerging market,” it said.

The initial work will be carried out in the UK, where 2,500 masts covering most of Wales in the southwest of the country will be upgraded to use open RAN equipment. Over time, it will expand the promotion of open RAN to Europe and Africa.

Johan Wibergh, chief technology officer of Vodafone, said that the overhaul of the network will increase the flexibility of operators. “Open RAN is also revitalizing our industry. It will promote the digital economy by stimulating a wider range of suppliers to provide greater technological innovation, bringing much-needed diversity to the supply chain,” he said.