Why we invested in Accelleran
In recent years, consumers have been inundated with relentless 5G-related marketing and hype from mobile network operators. We are being told that 5G will bring endless improvements to our daily lives, although concrete and immediate examples are hard to come by. We hear about autonomous vehicles, immersive augmented reality or numerous use cases in enterprise or healthcare sectors. However, the most promising applications of 5G depend on widespread network coverage and availability across many frequencies of the wireless spectrum, which simply hasn’t been built yet. The expectation is, however, that these deployments will accelerate and according to Acumen Research, the global 5G service market will exceed US$250Bn by 2027. Accelleran is well-positioned today to not only benefit from this growth but also contribute to its acceleration.
The current deployments of 5G
The current 5G deployments by mobile operators that cover large population primarily use so called low-band frequencies which meet the technical definitions of 5G but provide little discernible advantage to users over their current 4G experience. Seeing the 5G logo on your phone is nice but in and of itself doesn’t provide much value. Full-fledged 5G uses a combination of higher and lower frequencies to deliver faster upload and download speeds (up to 1Gbps), lower latency (10ms), longer battery life, and more. But these features are only available where networks have been upgraded to include previously unused higher frequencies on a widespread basis. Because those higher frequency radio waves don’t travel as far from their antenna as lower frequencies do, the 5G network fabric must be woven much denser than previous generation deployments. That means operators need to build a significant number of “small cells” in close proximity to one another, at great expense, to blanket a neighborhood and deliver the full benefits that 5G promises.
5G-based private networks
For certain commercial or business applications that require particularly low latency and high data speeds, the cloud computing infrastructure needs to also be placed closer to the user and the network’s antennas. Called edge computing, the approach saves data the round trip between the edge of the network and the core, boosting network performance. Some governments (e.g., US, Germany and the U.K.) have already started releasing small chunks of spectrum for wireless local and private networks, which can be utilized by a wide range of enterprises. Other countries such as Poland or Australia are finalizing plans on similar spectrum licensing for local private use.
For an airport or train hub, a manufacturing facility, or a sports or arts venue, a 5G-based private network provides greater security and traffic control (ability to dynamically slice the networks and reallocate resources as needed), faster data throughput, and lower latency than a public wireless network. It’s also an upgrade over a local wired network, which is limited in its mobile-dependent applications and more challenging and expensive to install and maintain. Best of all, these private wireless networks can be locally configured and managed independently of a mobile operator. That presents a significant opportunity for edge computing providers who, with the support of system and network integrators, can extend their services, particularly as related to broadly understood Internet of Things, or IoT solutions.
OpenRAN standard
In a traditional telecom network, radio access equipment like antennas and base stations are sold in a bundle with the software that controls the flow of traffic on that network and cannot be separated. But in recent years, the same disaggregation of hardware and software which has already taken place in core networks has also gained momentum in radio access networks. The OpenRAN system of standards allows network operators to use hardware and software from multiple telecom equipment vendors on the same network, which can mean significant capital investment and operational cost savings and alleviates the fear of dependency on a small handful of suppliers. The OpenRAN model allows a service provider to select underlying hardware separately from software components, and to mix and match from multiple vendors. Without OpenRAN, equipment manufacturers like Nokia or Ericsson would have much less incentive for price competition and innovation, which is a major concern for any network operator. It is also an opportunity for new entrants such as Accelleran to gain share in this high-growth potential market.
Accelleran as the new key entrant into 5G landscape
One of these new key entrants is Belgium-based Accelleran whose flagship, cloud-native product dRAX is built to accelerate the roll-out of OpenRAN-based private networks. Next to some other key network functions, dRAX’s cornerstone is a management platform that gives a local small-cell operator full control of their network’s traffic and allows them to tailor security and performance to suit individual applications and network conditions. Accelleran’s dRAX enables plugging in so-called xApps, which are standards-based applications that can be created by anyone to serve a specific local need, such as interference mitigation, AI-based traffic management, and more. This capability will further drive innovation and flexibility for a wider range of enterprises and users than ever before, without being limited by traditional telecom equipment vendors or monolithic mobile operators who need large scale deployments to support their economic models.
Accelleran’s dRax’s capabilities are particularly attractive for deployment of local private networks that can be used by enterprises (e.g., industrial sites, logistical centers, hospital systems, campuses or large office parks). These networks can be operated without relying on services from traditional mobile operators by edge computing service providers or enterprise IT departments. They will be less expensive to deploy and operate, while providing much greater flexibility and control to its users in deploying and running their cloud-based services. Other customers of Accelleran are neutral host network operators (e.g., telecom tower companies or commercial real estate owners) and mobile operators focused on deployments of local private networks.
