Vodafone UK announced in June it will deploy new radio technology from Samsung, including virtualized radio access network (vRAN) solutions as well as open RAN (O-RAN) compliant radios. For both technological and competitive reasons, the new deal – while relatively small in size – could be large in its impact.

From a technological perspective, vRAN and O-RAN bring the potential to make network operations much more efficient and dramatically reduce the capital investment required by operators (radios typically represent the largest portion of network spending for mobile operators). And – as is the case with the Vodafone UK deal – vRAN and especially O-RAN represent an opportunity for operators to expand their list of suppliers.

Enter Samsung, which – according to GlobalData – has managed to carve out a differentiated position in its work to virtualize and disaggregate base station architectures. This contrasts with competitors such as Huawei and Ericsson that have been less enthusiastic about the move to a completely open environment. That’s in part because of the immaturity of vRAN and O-RAN, but also due to the threat that a more open environment could create to their market leadership positions.

Samsung benefits from Huawei exclusion

Meanwhile, on the regulatory side, many operators have been forced to exclude Huawei from their deployment plans either due to outright bans or in response to political pressure. This in turn has forced these operators – who have no interest in a duopoly dominated by Ericsson and Nokia – to seek other options.

As a result, the win potentially marks a new chapter for Samsung, and at just the right time. Samsung has established strong network positions in its domestic South Korean market and in the US, including a $6.6 billion deal with Verizon announced last October, but the company has until now been largely absent from the European market.

However, if is early O-RAN activity is successful, that could change dramatically. The initial Vodafone UK deal is quite small (the operator plans to deploy just 2,500 rural sites in England and Wales), but other operators are likely to be watching closely.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

In particular, many other major European operator groups — including T-Mobile, Orange, Telefónica, and Vodafone – are on the record as enthusiastic O-RAN supporters and are at various phases of trials and early deployments. As a result, Samsung hopes the UK could be the first of many European deals coming over the next few years.