Strategic opportunities for the telecommunications industry

Open RAN

  • Article
  • 3 minute read
  • 02 Sep 2025

Open RAN (ORAN) is considered a key technology for the future of mobile networks. Open interfaces and the decoupling of hardware and software are intended to strengthen innovation, competition, and flexibility. The topic is becoming increasingly important for companies, as Open RAN opens up new opportunities for designing flexible and competitive network structures. The focus is on issues of integration into existing operating models, economic viability, and security. Current regulatory initiatives and international pilot projects show that the market environment is changing dynamically and that companies are required to set the technological and organizational course at an early stage.

How can the introduction of Open RAN succeed?

Open RAN represents a fundamental change in the network architecture. Unlike proprietary solutions, Open RAN enables the decoupling of hardware and software and the integration of different providers in an open, standardized environment. This development is supported worldwide by regulatory authorities and industry initiatives to promote innovation, competition, and technological sovereignty.

For companies, Open RAN opens up the possibility of responding more flexibly to market requirements and tapping into new business models. However, its introduction also brings challenges: the complexity of integration, the need for new operating models, and coordination between different partners require strategic planning and technical expertise. Particularly relevant is the ability to integrate Open RAN solutions into existing network structures while designing operational processes efficiently.

Current developments show that pilot projects and initial large-scale implementations are gaining momentum worldwide. Regulatory impetus, for example through targeted support programs and international standards, is accelerating market penetration. Companies are observing the experiences gained from international projects in order to develop their own strategies and minimize risks.

“The successful introduction of Open RAN requires a new level of cooperation between network operators, technology partners, and system integrators. Only by working together can the complex challenges of this change be overcome.”

Peter Weichsel,Managing Director at Strategy& Germany

The success of Open RAN depends largely on the ability to manage a diverse partner ecosystem. Network operators, system integrators, technology providers, and open-source communities must work closely together. An agile operating model and clear responsibilities are necessary to promote innovation and manage complexity.

The cost-effectiveness of Open RAN is a key decision criterion. Companies must critically evaluate the total costs and realistically assess potential savings. Scalability, standardization, and the reduction of integration efforts are crucial for Open RAN to offer long-term economic value compared to traditional RAN solutions.

Open RAN must demonstrate stability, performance, and interoperability in operational use. Only if the solutions function reliably and harmonize with existing systems can the trust of the industry be gained. Extensive testing and benchmarks are necessary to make performance transparent and create acceptance.

Security aspects and resilience are the focus of every Open RAN implementation. Companies must meet the highest requirements for data protection, cybersecurity, and reliability. Certified standards and continuous review of the security architecture are essential to minimize risks and comply with regulatory requirements.

Clear regulatory guidelines and international standards create investment security and promote innovation. Government support programs, initiatives by industry associations, and cooperation with regulatory authorities support the introduction of Open RAN. Governance structures ensure compliance and transparency.

PwC supports you in making the most of the potential of Open RAN and future-proofing your organization. Contact us for your individual Open RAN strategy.

Authors

Jens Niebuhr
Jens Niebuhr

Head of Technology, Media, and Telecommunications (TMT), PwC Germany

Peter Weichsel
Peter Weichsel

Managing Director, Strategy& Germany

Merlin Wierowski
Merlin Wierowski

Director, Strategy& Germany

Follow us