Open RAN and the link between competition and innovation
High quality mobile networks generate significant benefits to UK consumers and the economy at large. As newer generations of mobile technologies are developed and deployed, they enable consumers to benefit from innovative services. A vibrant and innovative market for the supply of mobile network equipment is key to deployment of high-quality mobile networks both now and in the future.
Open RAN has the potential to enable new entry and increase the level of competition in the mobile equipment market. But within industry there are different viewpoints on how Open RAN technology is likely to evolve and whether it is likely to lead to more innovation.
This article examines what the economic literature has to say on the link between competition and innovation, and provides our thoughts on what this might mean for the mobile equipment market.