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RANcos are attracting increased interest as new technologies facilitate their implementation

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Guillermo Fernández Castellanos: guillermo.fernandez@fidepartners.com
Hadrien Carparelli:hadrien.carparelli@fidepartners.com

The business case for RANcos is maturing for both MNOs and TowerCos

A RANco is a specialised entity that owns and operates the active Radio Access Network (RAN) equipment deployed on cell towers for mobile operators. This equipment includes antennas, base stations, radio units, and oftentimes fiber fronthaul/backhaul infrastructure, which are essential components for providing wireless communication services. RANcos lease access to their RAN equipment to Mobile Network Operators (MNOs), enabling MNOs to reduce costs and focus on service delivery to clients rather than on operating infrastructure.

The number of RANcos remains currently limited
Nowadays, a limited number of RANcos have been deployed. Some examples include Cellnex in Poland (2021), CETIN mainly in the Czech Republic (2015), and Mílá in Iceland (2022). They point to a model where the operator and the RANco are intimately associated: the RANco has a single anchor tenant who itself depends on a single RANco, the one it sold its RAN network to. This model is the result of several factors:
 
▪ It was technically far easier to carve out the operator’s RAN as a single network
▪ The financial and business structure of the deal fomented a full RAN carve-out rather than regional or smaller carve-outs
▪ There was an absence of competing RANcos that could provide flexibility in accessing the RAN
 
RANcos have struggled to convince other operators to migrate towards their RAN, partly resulting from the current all-or-nothing approach.
Indeed, operators perceive their network as a differentiating factor, with different levels of investment, pace of technology deployments, and levels of coverage per mobile technology. As a result, they are reluctant to move to a RANco with multiple MNOs
 
New technologies will be a RANco enabler
New technological developments could help transform the one-to-one RANco model and serve as powerful enablers of RANcos as they alter mobile network structure, operations and deployments. These advancements are encompassed under Software-Defined Networking (SDN) and Network Functions Virtualisation (NFV) implementations. These technologies facilitate the virtualisation of network functions and management, paving the way for more agile and efficient operations.
 
 

Mobile network deployments and operations could follow in the footsteps of fixed models with a multi-InfraCo approach

C-RAN and Open RAN will make mobile networks more efficient and cheaper to operate
By decoupling network functions from underlying hardware, SDN and NFV empower operators to dynamically allocate resources, optimise performance, and respond swiftly to changing demands. Moreover, virtualisation reduces operational costs by eliminating the need for dedicated hardware appliances and streamlining maintenance and upgrades.
 
C-RAN, which is gaining adoption among networks, is taking SDN/NFV further by virtualising equipment, notably Baseband Units (BBUs) that are traditionally deployed on macro sites. As a result, the signal processing and operation of the base stations are done in data centres away from the sites. This allows deployments of mobile sites to be less costly, while the operation of networks becomes more efficient.
 
Moreover, Open RAN promotes the use of open and standardised interfaces between network elements, enabling multi-vendor interoperability for RAN equipment. Thus, RAN infrastructure operators will no longer be restricted to one supplier, and will be able to use several vendors while ensuring interoperability. This will allow the entry of new vendors and greater competition, which will drive efficiencies.
The RANco market needs to evolve towards a many-to-many model, similar to the fixed access model
RANcos, with their one-fits-all solution, are not currently able to serve operators on the same market with varying and sometimes conflicting strategies and incentives.
 
SDN/NFV, Open-RAN and C-RAN could herald a different approach, similar to the model followed in the fixed space.
 
Broadband operators routinely contract bitstream access to FTTx from several neutral providers. In turn, these providers work with multiple broadband operators. This results in many-to-many relationships that provide operators a flexible and granular approach towards coverage and services. RANcos will have to adopt a similar model – also used by TowerCos – to attract additional tenants and extract the full value from integrating their RAN networks and operations.
 
Deploying flexible technology by operators and open and standardised interfaces between network elements will enable multi-vendor interoperability for RAN equipment.
 
This will facilitate RAN carve-outs and ensure interoperability in a diverse and regionalised (even site-to-site) network.
 

RANcos will have to remain agile to overcome the challenges that will no doubt arise before reaching a stable and mature market

The mobile infrastructure market stands at the doors of a transformative revolution, maybe greater than the era of TowerCos’ introduction.

However, the road to maturity is ahead; time will pass before RANcos can optimise service delivery to customers and enable operators to fully reap all the benefits from RAN operation externalisation.

RANcos and operators alike will have to adapt and innovate as they prepare their networks to meet the forthcoming challenges head-on. Success will depend on embracing the new technologies outlined in this article, leveraging artificial intelligence to drive network efficiency, and focusing on areas that amplify the value extracted from their networks.

In the interim, the market is bound to reward those who swiftly adapt, recognising and capitalising on these emerging changes with a clear strategic view.

At Fide Partners, our extensive experience in collaborating with infrastructure and mobile operators has given us a unique insight into the strategic and operational challenges—and opportunities—that define these industries.

If you are ready to tackle these challenges and seize new opportunities, we’re eager to hear your perspective. Connect with us, and let’s explore how we can achieve your goals together.

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