U.S. small telecom network operator Cellcom is shutting down its Open RAN network in Wisconsin due to pricing disagreements with vendor Parallel Wireless, Light Reading reported.
"We're going to have to shut down some of the Parallel Wireless networks. We do have several sites still in operation, but we believe we will face challenges in the coming years as we seek to expand and add additional frequency bands. Cellcom said in response to a question from Light Reading. If the quantity requirements are not lowered, we will face similar challenges as in 2021. ”
The small U.S. wireless network operator announced in 2018 that it would deploy Parallel Wireless's virtualized Open RAN network appliances in parts of Wisconsin's coverage area. The news came out almost at the same time that major network operators in the United States and South Korea opened the world's first 5G networks. However, this also happened before Open RAN technology was used as a lever in the Sino-US trade war to gain international geopolitical significance.
Earlier this year, Cellcom partnered with Ericsson and Cisco to launch its first 5G services. The company explained that its partnership with Parallel Wireless involves exploring Open RAN technology in the untapped (greenfield) market.
"It was a costly learning experience, but it also provides solid evidence to support our concerns about the maturity of O-RAN technology." The company wrote.
Specifically, Cellcom said it wants to expand the scope of the trial, but "faces challenges in procuring the necessary equipment."
Cellcom said: "For the partnership with Parallel Wireless, we have not been able to successfully increase the spectrum since the first deployment of its equipment. Despite working with Parallel Wireless and a value-added distributor, we were unable to get additional wireless devices in the frequency bands we needed without a significant minimum purchase order. We were forced to return to traditional RAN deployments to support the increase in spectrum in this market. ”
The company concluded, "Without economies of scale, O-RAN is not a cost-effective approach for regional operators." We firmly believe that when O-RAN matures, an open environment will be a viable option for us. ”
Parallel Wireless, however, blamed the wireless device availability problem on insufficient demand.
Steve Libbey, vice president of sales at Parallel Wireless, wrote in response to a question from Light Reading: "We have had a great time working with Cellcom and they have an impressive network. We understand concerns about increasing the diversity and availability of Open RAN wireless devices. Any type of ubiquitous and cost-effective wireless device, including Open RAN-compatible wireless devices, will need to meet demand over time. The Open RAN ecosystem, which includes Parallel Wireless, vendors, carriers, and the O-RAN Alliance, can play a role in accelerating the increase in wireless device variety through collaboration, which is a significant opportunity for the development of the global Open RAN market in 2022. ”
Other small wireless network operators in the United States have taken a similar stance toward Open RAN. In the U.S., Open RAN is touted as a cheap option for the FCC's ongoing "phase-out and replacement" program, but most carriers still stick with traditional RAN vendors. For example, Viaero Wireless uses Ericsson devices, while Union Wireless uses Nokia devices.
The FCC's "Phase Out and Replace" program is designed to compensate U.S. network operators for the cost of removing "insecure" devices from their networks.
However, many operators continue to express support for Open RAN. For example, Inland Cellular has been using Parallel Wireless's Open RAN device for about two years. The company recently reported that switching to the Open RAN system helped it reduce total capex by 40 percent.
In addition, Dish Network is also trumpeting the cost savings it has brought through OpenRAN while striving to launch a nationwide 5G network.
Research and consulting firm Dell'Oro Group recently reported that globally, sales of Open RAN devices are growing faster than expected. Still, the company predicts that by 2026, this emerging technology will only account for about 15% of the entire 2G-5G RAN market. (C114 Ace)