Rakuten Mobile, Inc., and Telefónica, S.A. announced today the signing of a Memorandum of Understanding (MoU) to cooperate on a shared vision to advance OpenRAN, 5G Core and OSS (operations support systems).
“We’re excited to collaborate with Telefónica on this shared vision of advancing OpenRAN,” said Tareq Amin, Representative Director, Executive Vice President and CTO of Rakuten Mobile. “I envision our partnership to also co-explore further development around the Rakuten Communications Platform that will enable operators around the world to take advantage of cost-effective cloud-native mobile network architecture that is secure and reliable.” (Emphasis added)
Amin emphasised the partnership is not just about opening the interfaces: “It’s about the future possibilities when these networks become fully autonomous. What makes a difference is automation, as it enables much needed operational savings. We’re going to spend a lot of energy around joint development of automation, especially what we call OSS transformation to move away from legacy systems.”
Enrique Blanco, Chief Technology & Information Officer (CTIO) at Telefónica, said: “Telefónica strongly believes that networks are evolving towards end-to-end virtualization through an open architecture, and OpenRAN is a key piece of the whole picture. Beyond the flexibility and simplicity that OpenRAN will provide, it will change the supplier ecosystem and revolutionise the current 5G industry in the medium and long term. At the same time, open and virtualized networks will lead to a new telco operating model. Telefonica and Rakuten Mobile have signed this MoU to work towards evaluating and demonstrating the capability and feasibility of OpenRAN architectures and make them a reality.”
“This is a massive opportunity for all of us. This is an inclusive approach and how we can guarantee we are building the network for the future,” Blanco added. In addition to defining the interfaces, the companies are exploring procurement of hardware and software, Blanco said.
Under the terms of the MoU, Rakuten Mobile and Telefónica plan to collaborate on the following:
- To research and conduct lab tests and trials to support OpenRAN architectures, including the role of the AI (Artificial Intelligence) in the RAN Networks.
- To jointly develop proposals for optimal 5G RAN architecture and OpenRAN models as part of industry efforts to achieve quicker time to market, new price-points, and the benefits of software-centric RAN.
- To collaborate in building an open and cost-effective 5G ecosystem, based on open interfaces, that will help accelerate the maturity of 5G with global roaming.
- To develop a joint procurement scheme of OpenRAN Hardware and Software that will help increase volumes and reach economies of scale, including CUs, DUs, RRUs, and other necessary network equipment and/or software components.
In addition, the companies will also jointly work on 4G/5G Core and OSS technology utilized by Rakuten Mobile in Japan and its Rakuten Communications Platform.
“Vendor selection typically takes a long time in the telecoms industry compared with the web-scale companies. Maybe together with Telefonica the discussions with vendors might change a bit and require us to create new business models.”
Telefonica plans to introduce open RAN in three phases, with pilots starting this year, initial rollouts in 2021 and mass deployments in 2022. “I’m extremely convinced we’ll hit these targets, but we are trying to be conservative,” Blanco said. From 2022 to 2025, up to half of Telefonica’s 5G deployments will use open RAN, he added.
Why this MOU is IMPORTANT:
- As there are no ITU recommendations or 3GPP specs detailing how to implement a 5G Core/5G SA network, the Rakuten-NEC 5G core could become a defacto standard. As we’ve stated many times, the 3GPP specs on 5G Core are network architecture specs that leave the various implementation choices to the implementor. And 3GPP is not even sending their 5G non-radio specs to ITU-T for consideration as future recommendations. Meanwhile, Rakuten and NEC have created a 5G “cloud native” core spec (proprietary of course) built on containers, which NEC (and likely other vendors) will implement in Rakuten’s 5G network. Rakuten and NEC plan to offer there 5G Core as a product to other 5G network operators. Telefónica could be the first customer for this 5G core product. Hence, this 5G Core product could
- The Rakuten Communications Platform for Open RAN could similarly be sold to other carriers that want to deploy an Open RAN 4G/5G network. The catch here is that any legacy wireless carrier wanting to do so would have to support two incompatible sets of cellular infrastructure to serve its customers: 1] The traditional “closed box base stations” (from Huawei, Ericsson, Nokia, Samsung, ZTE, etc) in cell towers AND 2] The new Open RAN, multi-vendor base stations using totally different hardware/software platforms which requires a significant amount of systems integration and tech support/trouble resolution. Rakuten’s platform could, at the very least, simplify systems integration and avoid “finger pointing” when troubleshooting a failure or degraded service.
- Both the Rakuten-NEC 5G Core and Rakuten Communications Platform for Open RAN could be terrific products to sell to greenfield carriers (with no existing wireless infrastructure). Apparently, that’s too late for Dish Network and Reliance Jio, which claim they’re building their own “open 5G” network. Meanwhile, India based Tech Mahindra claims it can build a complete 5G network now, which they would surely sell to would be 5G network providers, utilities, and government agencies around the world.
- The OSS co-operation amongst these two carriers is significant, because (once again) there are no standards for 5G SA OSS’s such that the deliverable output of cooperation here could become a defacto standard.
- Co-operative work on automation of network functions and operations will also be vitally important. Otherwise, that too will be proprietary to the wireless network provider which would require different software for the SAME functions for different carriers. The work will probably start with these 2800 series 3GPP specs: TS 28.554 Management and orchestration; 5G end to end Key Performance Indicators (KPI); TS 28.555 Management and orchestration; Network policy management for 5G mobile networks; Stage 1 TS 28.556 Management and orchestration; Network policy management for 5G mobile networks; Stage 2 and stage 3. There are similar ITU-T SG 13 high level Recommendations on these subjects.
Image Credit: STL Partners
About Rakuten Mobile
Rakuten Mobile, Inc. is a Rakuten Group company responsible for mobile communications, including mobile network operator (MNO) and mobile virtual network operator (MVNO) businesses, as well as ICT and energy. Through continuous innovation and the deployment of advanced technology, Rakuten Mobile aims to redefine expectations in the mobile communications industry in order to provide appealing and convenient services that respond to diverse customer needs.
Telefónica is one of the largest telecommunications service providers in the world. The company offers fixed and mobile connectivity as well as a wide range of digital services for residential and business customers. With 342 million customers, Telefónica operates in Europe and Latin America. Telefónica is a 100% listed company and its shares are traded on the Spanish Stock Market and on those in New York and Lima.
For more information about Telefónica: www.telefonica.com