Global RAN Build Spending Forecast, 2020-2025: LTE, 5G and Open RAN in the U.S., Europe and Asia Pacific

5G has been launched by many mobile operators in the U.S., Europe and the Asia Pacific region. The first step of the evolution to 5G involves the RAN (Radio Access Network) with the deployment of the first part of the 3GPP Release 15 standard, 5G NR (New Radio). The next step will be to deploy the new packet core and subsequent 3GPP releases.

Historically, the majority of build spending on the mobile network has been for the RAN and this is not expected to change as 5G is deployed. Therefore, if the wireless industry wishes to cut the cost of building and operating mobile networks, savings must be made in the RAN if significant benefit is to be realized. Many in the industry believe that Open RAN can provide this RAN cost savings.

This market study presents a five-year forecast of RAN build spending in the U.S., Europe and Asia Pacific, which is further split by 4G / 5G RAN spending and traditional / Open RAN spending. The study also includes a status update on auctioned 5G spectrum and 5G network deployments in the three regions and a discussion of Open RAN, virtualization, edge computing and new RAN technologies such as massive MIMO and beamforming.

---

Key Questions Answered

• How big is the RAN opportunity in the U.S., Europe and Asia Pacific in the next five years?
• What portion of RAN spending will be for Open RAN?
• What is the share of RAN spending for LTE and 5G?
• What are the key capabilities for 5G networks and what are some of the goals and use cases for 5G?
• What is the status of the major mobile operators’ 5G networks?
• What are some of the technologies being used to support the deployment of 5G RAN, such as dynamic spectrum sharing, MIMO and beamforming?
• What are the new architectures that are being used to evolve the mobile network and support 5G, such as Open RAN, virtualization and mobile edge computing?
• Who are some of the vendors in the Open RAN ecosystem?

---

Who Should Read

• Mobile operators
• Infrastructure OEMs
• Small cell product and solution vendors
• Financial analysts and investors.

---

Table of Contents

• Abstract
• Executive Summary
• 5G and Supporting Technologies
• RAN Spending Forecasts
• What This Means
• Methodology
• Network Model and Components
• Model Assumptions - General
• Model Assumptions - Moving to 5G
• iGR Cost Model and Mobile Operator Financial Disclosures
• 5G Defined
• eMBB
• URLLC
• mMTC
• 5G Services and Use Cases
• 5G Network Spectrum and Technologies
• Spectrum
• Dynamic Spectrum Sharing (DSS)
• Challenges Along the Road to 5G
• MIMO & Beamforming
• Open RAN and Virtualization
• What does “open” mean?
• What is Open RAN?
• The Open RAN ecosystem
• Virtualization
• Edge Computing
• ETSI Multi-access Edge Computing (MEC)
• Criteria around what goes at the edge
• Where can edge compute be placed?
• U.S. Mobile Operators’ 5G Networks
• Spectrum
• AT&T
• Verizon Wireless
• T-Mobile
• US Cellular
• Dish
• Rural Operators
• European Mobile Operators’ 5G Networks
• BT (EE)
• Deutsche Telekom
• Orange (France, Spain)
• Telefonica (Spain, Germany, UK)
• Telia (Sweden, Finland, Norway, Denmark, Estonia)
• Three UK
• TIM
• Vodafone (Germany, Spain, UK)
• Asia Pacific Spectrum and 5G Networks
• Australia
• Spectrum
• Optus
• Telstra
• China
• Spectrum
• China Mobile
• China Telecom
• China Unicom
• Hong Kong
• Spectrum
• China Mobile Hong Kong
• Hutchison (3 Hong Kong)
• HKT
• SmarTone
• India
• Spectrum
• Bharti Airtel
• Reliance Jio
• Vodafone Idea (VI)
• Indonesia
• Spectrum
• Japan
• Spectrum
• KDDI
• NTT DoCoMo
• Softbank
• Rakuten
• New Zealand
• Spectrum
• Spark
• Vodafone New Zealand
• 2degrees
• Philippines
• Globe
• PLDT
• Singapore
• Spectrum
• Singtel
• M1
• StarHub
• South Korea
• Spectrum
• 5G Deployment
• KT
• LG Uplus
• SK Telecom
• Taiwan
• Spectrum
• APT
• Chunghwa Telecom
• Far EasTone Telecommunications (FET)
• Taiwan Mobile
• Taiwan Star
• Thailand
• Spectrum
• AIS
• True
• RAN Infrastructure Build Cost Forecast
• Methodology and Assumptions
• U.S. RAN Infrastructure Build Spending
• U.S. RAN Infrastructure Build Spending by Generation
• U.S. RAN Infrastructure Build Spending by Open and Traditional RAN
• Europe RAN Infrastructure Build Spending
• Europe RAN Infrastructure Build Spending by Generation
• Europe RAN Infrastructure Build Spending by Open and Traditional RAN
• Asia Pacific RAN Infrastructure Build Spending
• Asia Pacific RAN Infrastructure Build Spending by Generation
• Asia Pacific RAN Infrastructure Build Spending by Open and Traditional RAN
• Open RAN Ecosystem Providers
• Definitions
• About iGR
• Disclaimer

---

List of Tables

• Table A: RAN Infrastructure Build Spending by Region, 2020-2025 ($M)
• Table B: RAN Infrastructure Build Spending by Generation, 2020-2025 ($M)
• Table C: RAN Infrastructure Build Spending by Type of RAN, 2020-2025 ($M)
• Table 1: U.S. RAN Infrastructure Build Spending, 2020-2025 ($M)
• Table 3: U.S. RAN Infrastructure Build Spending by Generation, 2020-2025 (percent)
• Table 4: U.S. Mobile Network Traditional RAN and Open RAN Build Spending, 2020-2025 ($M)
• Table 5: U.S. Mobile Network Traditional RAN and Open RAN Build Spending, 2020-2025 (percent)
• Table 6: Europe RAN Infrastructure Build Spending, 2020-2025 ($M)
• Table 7: Europe RAN Infrastructure Build Spending by Generation, 2020-2025 ($M)
• Table 8: Europe RAN Infrastructure Build Spending by Generation, 2020-2025 (percent)
• Table 9: Europe Mobile Network Traditional RAN and Open RAN Build Spending, 2020-2025 ($M)
• Table 10: Europe Mobile Network Traditional RAN and Open RAN Build Spending, 2020-2025 (percent)
• Table 11: Asia Pacific RAN Infrastructure Build Spending, 2020-2025 ($M)
• Table 12: Asia Pacific RAN Infrastructure Build Spending by Generation, 2020-2025 ($M)
• Table 13: Asia Pacific RAN Infrastructure Build Spending by Generation, 2020-2025 (percent)
• Table 14: Asia Pacific Mobile Network Traditional RAN and Open RAN Build Spending, 2020-2025 ($M)
• Table 15: Asia Pacific Mobile Network Traditional RAN and Open RAN Build Spending, 2020-2025 (percent)
• Definitions Table

---

List of Charts and Figures

• Figure A: RAN Infrastructure Build Spending by Region, 2020-2025 ($M)
• Figure B: RAN Infrastructure Build Spending by Generation, 2020-2025 ($M)
• Figure C: RAN Infrastructure Build Spending by Type of RAN, 2020-2025 ($M)
• Figure 1: No DSS versus With DSS
• Figure 2: DSS and Sharing at the Resource Block Level
• Figure 3: O-RAN Alliance Architecture Figure 4: U.S. RAN Infrastructure Build Spending, 2020-2025 ($M)
• Figure 5: U.S. RAN Infrastructure Build Spending by Generation, 2020-2025 ($M)
• Figure 6: U.S. RAN Infrastructure Build Spending by Generation, 2020-2025 (percent)
• Figure 7: U.S. Mobile Network Traditional RAN and Open RAN Build Spending, 2020-2025 ($M)
• Figure 8: U.S. Mobile Network Traditional RAN and Open RAN Build Spending, 2020-2025 (percent)
• Figure 9: Europe RAN Infrastructure Build Spending, 2020-2025 ($M)
• Figure 10: Europe RAN Infrastructure Build Spending by Generation, 2020-2025 ($M)
• Figure 11: Europe RAN Infrastructure Build Spending by Generation, 2020-2025 (percent)
• Figure 12: Europe Mobile Network Traditional RAN and Open RAN Build Spending, 2020-2025 ($M)
• Figure 13: Europe Mobile Network Traditional RAN and Open RAN Build Spending, 2020-2025 (percent)
• Figure 14: Asia Pacific RAN Infrastructure Build Spending, 2020-2025 ($M)
• Figure 15: Asia Pacific RAN Infrastructure Build Spending by Generation, 2020-2025 ($M)
• Figure 16: Asia Pacific RAN Infrastructure Build Spending by Generation, 2020-2025 (percent)
• Figure 17: Asia Pacific Mobile Network Traditional RAN and Open RAN Build Spending, 2020-2025 ($M)
• Figure 18: Asia Pacific Mobile Network Traditional RAN and Open RAN Build Spending, 2020-2025 (percent)

For additional information on the Global RAN Infrastructure Spending Forecast, 2020-2025: LTE, 5G and Open RAN in the U.S., Europe and Asia Pacific market study, please contact Iain Gillott, at (512) 263-5682 or by email.