One of the key advantages of ORAN and a major reason behind accelerating adoption is shared infrastructure.
Networks built on ORAN, the components, applications, physical infrastructure and even spectrum, are decoupled. ORAN radio units support multiple bands and open interfaces to any other vendor’s centralised and distributed equipment.
This is good news for African networks because it means we can build out existing networks by reusing equipment, increase coverage, increase revenue opportunities, and establish a migration path that leverages additional revenues that we can generate today to drive future deployments.
What we typically see deployed today are combinations of 2G, 3G and 4G. 2G predominates in the ultra-rural areas, 3G in denser but still semi-rural areas, and 4G in semi-rural, semi-urban and urban areas.
Ultra-rural: Typically use 2G handsets − people in this market need a lot of coverage, the cheapest possible communications, but not many advanced services and low bandwidth, so 2G meets their requirements.
Semi-rural: Typically use combinations of 3G and 4G handsets − people in this market need coverage but also higher bandwidth speeds, and slightly more advanced services, they are prepared to pay more, and they need a combination of 3G and 4G.
Semi-urban: Typically use 4G handsets and devices − people in this market tend to live in more densely populated areas, so they need coverage, they are willing to pay for faster speeds and more advanced services.
Bear in mind that as you progress up the chain from 2G to 5G you get less coverage per transmitter, but much higher throughput, and much faster speeds.
Front haul solutions that are based on Ethernet provide a way to integrate 5G with legacy technologies and converge the network from one end to the other.
Bridging the digital divide in Africa is less about building out networks in rural areas capable of supporting use cases like autonomous vehicles, which require high speeds and super low latencies. Rather, it’s about expanding coverage and thereafter adding speed and services as population density increases and people become accustomed to the services.
One in four Africans still has no network coverage, according to GSMA’s State of the Mobile Internet Connectivity 2020 report. Considering that 2G was released in 1991, it’s interesting to note there were more 3G and 4G connections than 2G connections only in 2019. That means 2G reigned supreme for 28 years. And there is still a lot of it out there.
It’s also interesting to note that the coverage gap halved from 2014, when it was 50%, to 25% in 2019. It means there is still a lot of opportunity, particularly when you consider reusing equipment that’s already paid for.
Front haul solutions that are based on Ethernet provide a way to integrate 5G with legacy technologies and converge the network from one end to the other. It creates a common backplane across the generational spectrum that extends the usefulness of existing network investments throughout the network, provides an upgrade path and creates customer growth opportunities.
This isn’t the case with proprietary technologies. In the UK, for example, there’s a stir about sunsetting 2G networks. Older people there still use them for their phones. They’re also used in telematics and some smart meters. They are even considering switching off some 3G networks.
5G ORAN’s integration capabilities save network operators money because it enables the reuse of equipment to broach new markets and extend services in existing markets. But each generational spectrum needs its own radio equipment as in the past.
A big win is that, as you upgrade high density areas of the network to a higher generational spectrum, so you use the old kit to fill out the black spots or dead zones that previously existed in the network. That improves coverage, which gives you access to more customers. It also provides a relatively higher level of services than was previously possible for that geographical area, which is another opportunity to improve revenues.
This is essentially what we’re doing with Telkom Kenya Limited (TKL).
As Mugo Kibati, CEO of TKL, said in November last year when the deal was announced: “We continue with our long-term terrestrial network expansion plan that is informed by our overall company strategy, which will see us scale up to 80% of our network to 4G, increase our network footprint across the country, and get more Kenyans online.”
We are helping TKL to roll out a robust 4G network with a future-proof foundation to enable its strategic vision to compete as one of the major East African service providers. The rollout augments Telkom’s existing network infrastructure by delivering world-class quality of experience to more customers across a much wider coverage area.
The network expansion will also see Telkom connect more than 200 learning institutions, as well as over 30 medical facilities to the internet, thereby boosting the use of remote learning and e-health solutions.
This approach minimises new investment, while maximising revenue opportunities to fund further expansion and upgrades. It also minimises exposure to risks associated with ‘green fields’ network deployments on new technologies.
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