The telecommunications industry is at a pivotal moment, with significant changes unfolding across major players. Two major developments stand out: KDDI’s bold move towards Open RAN in collaboration with Samsung, and KT Corp’s restructuring aimed at embracing AI and converged technology. These initiatives highlight the industry’s commitment to future-proofing their infrastructure while navigating current technological landscapes.
KDDI and Samsung’s Strategic Partnership for Open RAN
KDDI, a prominent Japanese telecommunications company, has announced a significant advancement in its Open RAN deployments, leveraging its longstanding relationship with Samsung. Over the years, KDDI has conducted several pilot projects to fine-tune its Open RAN strategy. Now, the company plans a substantial rollout in 2025, with Samsung as the primary technology partner, signaling a new era in Open RAN implementation.
Samsung’s contribution to KDDI’s initiative is multi-faceted. It includes providing 4G and 5G Open RAN-compliant virtualized RAN (vRAN) solutions and its vRAN 3.0 technology stack. This comprehensive suite incorporates Open RAN-compliant radios, featuring advanced massive MIMO products suitable for both low- and mid-band spectrum. Alongside Samsung, other tech giants like Hewlett Packard Enterprise (HPE), Intel, and Red Hat will also play crucial roles in this deployment.
An integral component of Samsung’s offering is the Samsung CognitiV Networks Operations Suite (NOS). This suite is designed to automate the lifecycle management of large-scale vRAN deployments, streamlining the processes of onboarding, deployment, and operations. By enhancing the efficiency of network management, KDDI aims to better handle its expansive network, promoting operational efficiency and scalability.
Kazuyuki Yoshimura, KDDI’s CTO, expressed the company’s commitment to innovation, highlighting that the announcement underscores their dedication to introducing cutting-edge and reliable radio access technologies to Japan. Besides facilitating significant advancements in 4G and 5G, KDDI’s partnership with industry-leading companies like Samsung aligns with their strategy to prepare for next-generation networks.
KT Corp’s Restructuring: Focusing on AI and Converged Technology
KT Corp, one of South Korea’s leading telecommunications companies, is undergoing a significant organizational restructuring. This process includes creating two new subsidiaries and implementing a substantial voluntary redundancy program. The restructuring is part of KT’s broader AICT (Artificial Intelligence and Converged Technology) strategy, reflecting a commitment to future-proofing its operations through technological innovation.
The restructuring plan is nearing finalization, with critical decisions expected during board meetings scheduled for mid-October. The voluntary redundancy program could impact up to 5,700 employees, potentially reducing KT’s core operational staff to around 12,000. This move is aimed at refocusing the company’s workforce on AI-related developments and strategic initiatives.
KT’s collaboration with Microsoft, announced earlier this year, exemplifies its AI-driven strategic direction. By partnering with a tech giant like Microsoft, KT aims to harness advanced AI technologies to enhance its service offerings and operational capabilities. The overarching goal is to position KT as a leader in AI and converged technologies, facilitating a smarter, more efficient network that can adapt to evolving market demands.
The Future of the RAN Market: Trends and Predictions
The Radio Access Network (RAN) market is poised for significant changes, with a mixed outlook for the coming years. Research firm Dell’Oro Group projects the RAN market will continue to decline until 2029, after which it is expected to see a resurgence driven by investments in 6G technology. Despite a period of substantial revenue growth between 2017 and 2021, the RAN market is now experiencing consecutive years of decline.
This downturn is projected to result in a 2% compound annual growth rate (CAGR) downturn over the next five years. By rough estimates, the RAN market’s value for the current year is around $35 billion. The anticipated revival in the RAN market is linked to substantial 6G investments, which promise to introduce new opportunities and challenges for the industry.
However, there is notable skepticism within the operator community regarding heavy investments in 6G RAN equipment. The ambivalence primarily stems from the inability of 5G technologies to significantly shift revenue trends despite massive investments exceeding $2 trillion over the past decade. The expectation for future growth is based on the deceleration in mobile data traffic, leading operators to potentially reduce capital intensity ratios while planning for additional capacity necessitated by future demand.
NTT Docomo’s Ambitious 6G Initiative
NTT Docomo, another major player in the Japanese telecom space, is actively exploring the next-generation cellular communications technology with its “6G Harmonized Intelligence” project. This initiative aims to delve into the potential of 6G, envisioning it as a ‘network for AI’. Docomo’s efforts reflect a proactive approach to 6G research and development, setting the stage for future technological advancements.
The 6G Harmonized Intelligence project is poised to be showcased at the YRP Open Innovation Day at Yokosuka Research Park. This event will highlight NTT Docomo’s commitment to early-stage 6G R&D, drawing industry attention to the company’s innovative endeavors. The focus on AI-friendly networks underscores a trend towards intelligent, self-optimizing networks that anticipate and adapt to user needs, promising a more seamless and efficient communication experience.
Conclusion
The telecommunications industry is currently experiencing a pivotal transformation, marked by major strides among its leading players. Two particularly noteworthy developments are making waves: KDDI’s daring shift towards Open RAN technology, forged in partnership with Samsung, and KT Corp’s strategic restructuring designed to integrate artificial intelligence and converged technologies. KDDI’s adoption of Open RAN demonstrates a commitment to flexible, efficient, and scalable network architecture, aiming to enhance their service offerings and maintain a competitive edge. By collaborating with Samsung, they leverage cutting-edge expertise and technology to innovate and set new industry standards.
Meanwhile, KT Corp’s restructuring reflects a vision of the future where AI and converged technologies play a central role in telecom operations. This move is poised to revolutionize the way services are delivered, making them more intelligent, responsive, and adaptable to consumer needs. The shift towards AI could streamline operations, reduce costs, and open up new revenue streams by offering advanced services that were previously unattainable.
Both initiatives underscore a broader commitment within the telecommunications industry to future-proof their infrastructures while adapting to the ever-evolving technological landscape. These developments illustrate how major telecom companies are not merely reacting to current changes but actively shaping the future of global communication networks.
