Viettel Bets on Open RAN to Drive 5G Rollout

By Matthias Foo | 4Q 2024 | IN-7621

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In November 2024, Vietnamese Communication Service Provider (CSP), Viettel, announced that it had deployed over 300 Open Radio Access Network (RAN) sites as part of its 5G network rollout plans. Being both a CSP and a Network Equipment Vendor (NEV), Viettel's Open RAN network is powered by its own designed and produced 5G Radio Units (RUs) and Distributed Units (DUs) that were co-developed with Qualcomm, a collaboration that has been in place since May 2022. In addition, the CSP has integrated its Element Management System (EMS) with Qualcomm's Edgewise™ Suite, which is able to support multi-vendor, cellular technologies, and network architectures via a unified platform.

According to the operator, the initial Open RAN deployments in the Hanoi and Ha Nam provinces supported 32T32R Massive Multiple Input, Multiple Output (mMIMO) capabilities, and these were successful in delivering robust network performance that was on par with traditional RAN deployments. Expectations are that Viettel will continue to deploy more Open RAN sites across the country to support its 5G deployment strategy, with the operator also hinting that more such deployments are on its roadmap.

As mentioned in an earlier ABI Insight "Ericsson and MasOrange's Open RAN Initiative Signals Ongoing Shift Away from Chinese Vendors in Europe, with European Providers Poised to Capitalize", while there have been several announcements of Open RAN trials happening globally, there is still a general hesitance among operators to fully embrace large-scale and rapid deployment of Open RAN technology. This hesitation is closely tied to the economic challenges and global headwinds that many operators are currently facing, as well as an inclination to first achieve Return on Investment (ROI) from their existing 5G infrastructure before committing to further network expansion. This can be observed from the significant reduction in Capital Expenditure (CAPEX)-around 50% in some regions-experienced by a large number of operators globally.

In light of the above, this latest announcement by Viettel will definitely be welcome news to the Open RAN industry-particularly to Open RAN equipment vendors like Qualcomm-as it represents new opportunities in a growth market. Additionally, Viettel also has strong presence in other potential growth markets, such as Cambodia, Laos, Haiti, Mozambique, Timor, etc., that have yet to launch or achieve strong 5G nationwide coverage. Thus, there is also an opportunity to leverage economies of scale and encourage greater adoption of 5G Open RAN solutions with lower equipment and deployments costs in these other regions as well. Successful Open RAN deployments by Viettel can also serve as benchmark case examples for other global CSPs or NEVs to follow suit.

Despite the positives, it should be noted that like many of its predecessors, Viettel's Open RAN approach is currently still very much a "single vendor" one, which differs from Open RAN's true goal of multi-vendor interoperability. Common cited benefits of multi-operator interoperability include increased flexibility and customer choice, lower equipment costs, and increased network performance. However, on the other hand, interoperability concerns and network performance accountability tend to be major stumbling blocks for CSPs. Thus, among the many global examples of Open RAN deployments so far, these have been mainly based on the safer "single vendor" approach.

Despite the above, ABI Research is of the view that Viettel's unique position as both as an operator and an NEV places the company in the novel position of being able to trial and showcase the optimum potential for Open RAN technology. Below are some possible strategies that Viettel could use to help drive the Open RAN market forward:

• Strong Commitment to the "Open" Principle: While slightly counter-intuitive, the success of Open RAN involves the close collaboration of different NEVs to ensure seamless interoperability. Being both a CSP and an NEV, Viettel is in a unique position to embrace this concept, as it also seeks opportunities to maximize the profitability of its operator businesses, while also demonstrating how a multi-vendor Open RAN approach could be deployed in a real-world setting.
• Using Viettel's Own Network for Interoperability Proofs: Being both a CSP and an NEV, Viettel also has a considerable advantage in being able to utilize its own network to trial and optimize multi-vendor Open RAN solutions. While most other operators will have reservations about deploying a multi-vendor solution in a live environment, this barrier is considerably reduced as Viettel can still maintain overall control of the RAN infrastructure in the initial stages of Open RAN deployment. If this model proves to be successful, more disaggregated approaches could then be considered for future implementations.
• Continued Investments in Technology and Ecosystem: To ensure that Open RAN technology continues to gain momentum, Viettel will also need to continue improving existing technologies and work closely with relevant ecosystem partners, such as Qualcomm, to ensure that Open RAN can deliver that additional value over traditional RAN solutions. This can include enhancing the various value adds of Open RAN, such as cost reductions, deployment simplicity and flexibility, increased automation and intelligence, etc.

All in all, ABI Research believes that Viettel's commitment to Open RAN is a significant boost for the industry. With many operators reluctant to make the first move to fully embrace multi-vendor Open RAN, the unique position of Viettel being both a CSP and an NEV enables the organization to overcome many of the traditional challenges that other CSPs face. ABI Research believes that if Viettel can use its strategic position to showcase successful multi-vendor Open RAN deployments, this will be a key step in accelerating Open RAN into its next stage of development.