AT&T has revealed its collaboration with Ericsson to spearhead the deployment of a commercial-scale open radio access network (Open RAN) in the United States.
The telecommunications giant aims to revolutionize the industry, fostering a more robust ecosystem of network infrastructure providers and suppliers.
This ambitious venture, spanning a five-year term with a potential expenditure of approximately $14 billion, signifies a significant leap toward the future of wireless networks.
A visitor walks past US multinational telecommunications AT&T logo at the Mobile World Congress (MWC), the telecom industry's biggest annual gathering, in Barcelona on February 27, 2023.
Open RAN Initiative of AT&T
AT&T's Open RAN initiative outlines a plan for 70% of its wireless network traffic to operate across open-capable platforms by late 2026. The company anticipates the integration of fully operational open RAN sites, in collaboration with Ericsson and Fujitsu, commencing in 2024.
This shift, departing from closed proprietary interfaces, will facilitate the swift scaling and management of mixed supplier hardware at individual cell sites.
Starting in 2025, AT&T plans to extend the Open RAN environment across its wireless network, collaborating with multiple suppliers, including Corning Incorporated, Dell Technologies, Ericsson, Fujitsu, and Intel.
The joint commitment between AT&T and Ericsson holds strategic significance in the ongoing 5G innovation cycle. Adopting an open, agile, and programmable wireless network positions AT&T to capitalize rapidly on the advancements in wireless technology and spectrum as they unfold.
These innovations promise lower-power, sustainable networks with heightened performance, enhancing user experiences. Ericsson's open architecture serves as a foundation for developers to drive innovation via open and programmable networks, fostering modernization and competition in the U.S. wireless equipment market.
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US RAN Market
AT&T envisions increased competition in the US RAN market, which results in enhanced innovation and operational efficiencies.
The commitment to Open RAN with its suppliers deploying open hardware, transitioning to cloud RAN, and introducing third-party radios offers greater flexibility in choosing equipment, lower network costs, and enhanced operational efficiencies.
In a statement, Chris Sambar, Executive Vice President of AT&T Network, highlighted the company's leadership in open platform sourcing for its wireless network.
He expressed optimism about driving innovation, fostering competition, and connecting more Americans with 5G and fiber through this collaboration with Ericsson.
"With this collaboration, we will open up radio access networks, drive innovation, spur competition, and connect more Americans with 5G and fiber. We are pleased that Ericsson shares our support for Open RAN and the possibilities this creates for American digital infrastructure," Sambar noted.
Börje Ekholm, President and CEO of Ericsson, echoed the same sentiment, emphasizing the significance of moving towards open, cloud-based, and programmable networks.
He lauded the partnership with AT&T in industrializing Open RAN, which he believes will accelerate digital transformation in the U.S. Ericsson will utilize its USA 5G Smart Factory in Lewisville, Texas, to manufacture 5G equipment under this contract.
As part of its commitment to compliance with infrastructure laws, Ericsson's facility adheres to the Build America, Buy America provisions. The collaboration with Ericsson is expected to enhance AT&T's wireless network in North America and contribute to the expansion of its 5G network.
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