What's Happening?
Airspan Networks has secured a significant deal with Rakuten Mobile, a Japanese telecommunications company, to supply radio units (RUs) for Rakuten's mobile network. This agreement involves deploying Airspan radios
at approximately 5,000 outdoor macro sites, enhancing Rakuten's network coverage. The deal follows Airspan's previous licensing agreement with Rakuten Symphony, allowing the use of Altiostar software, now branded as SymRAN, in conjunction with Airspan radios. This collaboration is part of Rakuten's broader strategy to implement open RAN technology, which aims to diversify the supply chain by using standardized interfaces to integrate products from different vendors. Airspan, which faced financial difficulties and filed for bankruptcy in 2024, has since restructured and returned as a privately owned company, backed by Fortress Investment Group.
Why It's Important?
The partnership between Airspan and Rakuten Mobile is a notable development in the open RAN sector, which seeks to challenge the dominance of established telecom equipment suppliers like Ericsson, Huawei, and Nokia. By promoting interoperability and vendor diversity, open RAN can potentially reduce costs and foster innovation in the telecommunications industry. For Airspan, this deal represents a significant opportunity to demonstrate the viability of its technology on a large scale, potentially opening doors to further contracts with other operators. The success of this deployment could encourage more telecom companies to adopt open RAN solutions, thereby increasing competition and reducing reliance on a few major suppliers. Additionally, the deal highlights the role of U.S. companies in advancing open RAN technology, which has strategic implications for national security and technological leadership.
What's Next?
Following the successful deployment of Airspan radios in Rakuten's network, the focus will likely shift to evaluating the performance and reliability of the open RAN setup. If successful, this could lead to further expansion of open RAN deployments both in Japan and internationally. Airspan may also seek to leverage this success to secure additional contracts with other telecom operators, particularly those looking to diversify their supply chains. The broader telecommunications industry will be watching closely to see if open RAN can deliver on its promises of cost savings and increased flexibility. Additionally, regulatory bodies and industry stakeholders may continue to assess the implications of open RAN on market dynamics and competition.
Beyond the Headlines
The Airspan-Rakuten deal underscores the ongoing shift towards open RAN as a means to disrupt traditional telecom supply chains. This movement is not without its challenges, as it requires significant coordination among various vendors and adherence to open standards. Moreover, the involvement of U.S. companies like Airspan in open RAN development is strategically important, as it aligns with broader geopolitical efforts to reduce dependency on Chinese technology. The success of open RAN could also influence regulatory policies and industry standards, potentially leading to a more open and competitive telecommunications market globally.
