Benefits of Cloud RAN Virtualization Delayed, but Centralized RAN Saved Millions in 2014 OPEX

CAMPBELL, Calif., Jan. 27, 2015 /PRNewswire/ -- Mobile Experts released a report today titled Cloud RAN: Enabling NFV in Mobile Networks that examines the capacity and cost reduction benefits of Centralized RAN and Network Function Virtualization in mobile networks.  The 100-page study includes 77 charts/figures, with deep technical insight and a five-year forecast of the migration for Centralized RAN (co-located baseband units) and Cloud RAN (Virtualized baseband pools). Both high power radio and low-power indoor radio scenarios are covered in this analysis. The study clarifies how mobile operators with access to dark fiber can implement LTE-Advanced features over the next two years, including CoMP and eICIC, and realize the benefits of LTE-Advanced.  Virtualization of the network will take place later in many cases...and this study provides details on the challenges to be solved for virtualization.

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Frank Rayal, CRN Systems Analyst at Mobile Experts and the primary author of this report commented, "Operator interest in Cloud RAN is increasing for different reasons. In Asia, operational cost reduction drove operators to centralize baseband processing to realize between 30 – 50% savings, while in the rest of the world Cloud RAN is a vehicle for capital cost reduction by applying NFV to the radio access network.

"Fronthaul requirements are the main barrier to centralization. Fronthaul capacity grows linearly with size of the network, and this makes centralization uneconomical for operators without fiber assets.   Outside of Asia, we expect Cloud RAN technology to manifest itself in different ways, including interesting 'micro-CRAN' systems for in-building applications."

The report delineates how Cloud RAN and Centralized RAN improve operational performance in dense mobile networks through Coordinated Multipoint (CoMP) and interference reduction techniques. These will become especially attractive in high-density venues where our analysts expect micro-CRAN systems to thrive.

About Mobile Experts LLC:
Mobile Experts provides insightful market analysis for the mobile infrastructure and mobile handset markets. Our analysts are true experts, who remain focused on topics where each Expert has 20 years of experience or more. The company's research dives deep into cost/benefit analysis for new technology, to cut through the hype of the mobile industry. Recent publications focus on Small Cells,  Macro Base Station Transceivers, LTE-Advanced, Semiconductors for RRH, Active Antenna Systems, Backhaul for Small Cells, Semiconductors for Small Cells, RF Front Ends for Mobile Devices, and DAS.

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SOURCE Mobile Experts, LLC

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