How Will AT&T’s Latest Announcement Influence The Telecom Market?

A major concern for technology companies today is focused on cost-saving and improving efficiencies.

This is why they’re on the lookout to incorporate technologies such as ORAN.

Open Radio Access Network (ORAN or Open RAN) enables telecom players to ditch expensive proprietary technologies sourced from single vendors for non-proprietary subcomponents sourced from various vendors.

It offers numerous benefits like flexibility, cost-effectiveness, scalability, interoperability, simplified network management, enhanced innovation, advanced security, energy efficiency and more.

Recently, we reported on Vodafone making moves in this direction. (read more)

Now, we have AT&T making some important announcements regarding its ORAN plan. What did they say? Let’s explore!
 

What Was AT&T’s Announcement?

 

• AT&T announced they would be tying up with Ericsson to push ORAN technology in the US.

• The plan is for 70% of the company’s wireless network traffic to use ORAN infrastructure by late 2026.

• “We plan to lead the U.S. in commercial scale open radio access network (Open RAN) deployment to further telecom industry efforts and drive innovation,” read a line from their news release.

• Furthermore, beginning from 2024, the company aims to have fully integrated ORAN sites operating in coordination with Ericsson and Fujitsu.

• The estimated spend of the project with Ericsson could reach around $14 billion over a 5-year period.

• Reportedly, the company has been testing and analyzing ORAN technology for over 6 months.

• “All of the new equipment that we are going to be putting out will be Open RAN capable,” said Chris Sambar, President of AT&T Network, adding, “You've got to give them something that they really want and in return, we are going to get something that not only AT&T wants but the entire industry wants.”

• The deal could see less presence for Nokia in the North American market. Apropos, Nokia’s shares fell 8% and Ericsson’s rose 9% following the announcement.

 

What Did The Stakeholders Say?

 

• Chris Sambar, Executive Vice President, AT&T Network, said, “AT&T is taking the lead in open platform sourcing in our wireless network. 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.”

• Börje Ekholm, President and CEO, Ericsson, said, “High-performance and differentiated networks will be the foundation for the next step in digitalization. I am excited about this future and happy to see our long-term partner, AT&T, choosing Ericsson for this strategic industry shift – moving to open, cloud-based and programmable networks.”

• [Contd.] “Through this shift, and with open interfaces and open APIs, the industry will see new performance-based business models, creating new ways for operators to monetize the network. We are truly proud to be partnering with AT&T in the industrialization of Open RAN and help accelerate digital transformation in the U.S.”

Do you think AT&T’s move will inspire other telecom and networking companies to follow suit? Do you think embracing ORAN technology will help solve current problems in the telecom industry?

Let us know in the comments below!