5G New Radio Open Radio Access Network Implementation in Brazil: Review and Cost Assessment

Abstract

With the advances of Radio Access Networks, the Open RAN introduced the concept of virtualization and openness to the mobile network elements. These characteristics allow multi-vendor implementations in commercial out-of-shelf hardware with open radio interfaces beyond flexibility and scalability, permitting bringing the data processing to the network edge and easy network element escalation. In Brazil, Radio Access Networks comprise distributed and centralized architectural topology types, which do not meet the requirements of the 5G New Radio wireless mobile network. To reach the 5G needs, an upgrade in the existing network is necessary, revealing some challenges over the existing scenario. This study shows the state-of-art, political, and economic factors that challenge the implementation of Open RAN in Brazil, analyzing the actual regulatory and political facts that can make the technology affordable and possible to introduce quickly to the market.

1. Introduction

The Radio Access Network (RAN) is the primary component of wireless mobile networks. It connects user equipment (UE) to the core network, providing the necessary features and functionalities for end users to engage in mobile communications. The RAN architecture has evolved from the legacy distributed RAN (d-RAN) to the centralized RAN (c-RAN), where the number of equipment units and cost with operation is reduced, and eventually to the virtualized RAN (v-RAN), which provides flexibility to be hosted on data centers and quickly migrated with even more reduced costs in equipment, operation, and maintenance [1]. Though these architectures are robust, they face challenges in meeting the stringent requirements of 5G New Radio (5G NR), especially in terms of very low latency and high reliability for new critical solutions. In Brazil, the infrastructure is not prepared to hold the most advanced technologies, which can delay the implementation of new services and the usage of the 5G NR [2].

The emergence of v-RAN, a virtualized RAN architecture, demonstrates the industry’s innovative approach to addressing these challenges by moving processes to the network edge through separated virtualized network functions. This approach offers flexibility and scalability in the network topology, allowing for implementing new features while meeting requirements [3].

The RAN represents approximately 70% of the Mobile Network Operator’s (MNO) capital expenditure (CAPEX) and operational expenditure (OPEX) in the total cost of ownership (TCO), making it a significant expense. However, introducing Open RAN architecture provides hope by significantly reducing RAN CAPEX costs. This reduction is achieved by eliminating supplier lock-in through vendor interoperability, utilizing open interfaces, and enabling installation on commercial off-the-shelf hardware (COTS). Open RAN also allows for infrastructure sharing and virtualized radio access equipment deployment in shared data centers or public clouds [4].

The enablement of the 5G network poses the most significant challenge for MNOs in rural areas with low user penetration, low average return per user (ARPU), and non-existent coverage of mobile radios. The high OPEX and infrastructure complexity in areas with low population density discourage investments in these regions [5].

Different RAN architectures offer different cost implications. In addition, the cost-effectiveness of each RAN architecture in Brazil depends on various factors, including existing infrastructure, population density, and specific deployment scenarios [6]. This paper discusses the cost considerations of the leading 5G RAN architectures in the context of Brazil, as well as the challenges and opportunities. Focused on Open RAN, this research shows that this technology needs to be implemented. The necessity of increasing the area coverage, reducing the costs for the MNOs, enabling the sharing, and bringing the processing to the network edge are requirements for the new 5G technologies. The information found offers an overview of the actual RAN scenery in Brazil and its evolution over the next few years. It is a base review for new studies and information about Brazil’s state-of-the-art implementation. This study is organized as follows: Section 2 discusses 5G New Radio Technology and Open RAN; Section 3 describes the Brazilian landscape; the challenges found in Brazilian deployments are discussed in Section 4; the actual Open RAN implementation in Brazil is demonstrated in Section 5; the implementation costs in Brazil in Section 6; the prospects are presented in Section 7; and conclusion is offered in Section 8.

2. Background

2.1. 5G NR (New Radio) Technology

The emergence of 5G New Radio technology has revolutionized wireless communication, offering faster speeds, greater capacity, and improved reliability. This advancement opens opportunities for innovative applications and services to improve mobile broadband, ultra-reliable low-latency communications, and massive machine-type communications [7]. Furthermore, 5G supports new types of applications with diverse requirements, enabling the Internet of Things (IoT) to be widely used in smart city applications, sensors, and actuators, using machine-to-machine (M2M) communication, which was impossible with 4G technology.

Previous generations of wireless mobile networks (1G, 2G, and 3G) focused on voice over a dedicated circuit network. With 4G, the network transitioned to packet-switching, facilitating data packet exchange. In turn, 5G NR improves on 4G networks, increasing speed and reliability and reducing latency. This low latency is essential for new critical solutions and meeting strict feasibility requirements. In 5G NR, the Quality of Experience (QoE) is enhanced by adding new users to the MNO without compromising service quality. Therefore, 5G technology is expected to revolutionize industries such as healthcare, transportation, and manufacturing [8].

In order to meet the diverse requirements of emerging use cases, 5G utilizes a flexible and reconfigurable architecture that efficiently integrates various radio and core network technologies [9,10]. A key feature of 5G NR is its flexible frame structure and scalable numerology, enabling optimized support for various use cases, from high-speed mobile broadband to ultra-reliable low-latency communications [11].

The technology supports various carrier frequencies, from sub-6 GHz to mm-wave bands, allowing for high data rates and increased network capacity [12]. In addition, 5G NR includes improvements in beamforming, massive MIMO (Multiple Input–Multiple Output), and non-orthogonal multiple access techniques to boost spectral efficiency and throughput. It also enables spatial multiplexing and interference suppression, enhancing network performance [13].

Implementing 5G NR introduces new challenges, especially in network security. The variety of services, applications, and connected devices in 5G networks increases cyber threats, which pose security and privacy risks [14]. Furthermore, as networks become more software-defined and virtualized, security frameworks and protocols are essential to protect the integrity and confidentiality of 5G communications [15].

Energy efficiency is crucial in 5G NR. Developing energy-efficient solutions, optimizing power consumption, and ensuring sustainability and environmental impact is important [8,9,10,11]. The adoption of 5G NR is expected to support new applications such as autonomous vehicles, smart cities, and critical communication systems with low latency and high reliability. In healthcare, 5G NR could enable remote surgeries and continuous patient monitoring [16]. The rollout of 5G NR encounters obstacles such as high infrastructure costs, extensive network deployments, and stakeholder coordination. Managing the heterogeneous nature of 5G networks with various technologies presents network management and automation challenges.

Researchers are exploring technologies beyond 5G, including terahertz communications, AI-driven network optimization, and intelligent reflecting surfaces to improve wireless systems [17].

Overall, 5G NR technology is a major advancement in wireless communication, providing unprecedented data rates, latency, and connection density capabilities. In Latin America, implementation of this technology faces challenges due to the diverse geographic and socioeconomic landscape of the region, which requires innovative solutions to meet its specific requirements.

2.2. Open RAN Architecture

The key goals of Open RAN implementation are to bring openness and intelligence and offer flexibility, performance improvement, and cost-efficiency in RAN deployment and operation [18]. The RAN is better known as the base station (BS) or gNodeB. The BS has two central units: the radio unit (RU), which is responsible for transmission and reception through electromagnetic waves to UEs, and the baseband unit (BBU), which is responsible for radio management, resource allocation, and other management operations, interconnecting the core functions to the gNodeB. The RAN architecture has evolved through generations, centralizing, separating, and virtualizing the elements of the RAN network.

In d-RAN, the RU and the BBU are vertically integrated, with BBU installed right at the base of the BS using proprietary hardware and software. The RU is located at the top of the tower, providing extensive area coverage, and it does not require a high-speed interface to connect to the BBU. Each BS operates independently and becomes denser as the number of RANs increases. This layout results in high OPEX costs for MNOs due to renting BS site spaces and cooling systems, along with high CAPEX on equipment.

The ”Centralized” or ”Cloud” RAN architecture reduces site space rental costs and power consumption. The BBU is divided into a CU and a DU. The fronthaul (FH) connects the DU to the remote RU (RRU) using the Common Public Radio Interface (CPRI). The CU manages and distributes traffic from the core to different DUs and from the DUs to several RRUs. This concept requires high bandwidth and low latency due to additional jitter and latency introduced by the equipment needed to reach the RRU. In c-RAN, the BBU’s functions are physically pooled, while in cloud RAN, the DU and CU are used in aggregated cloud servers. The cloud server improves baseband processing, improves network throughput, enables network scalability, and reduces power consumption. Some disadvantages of the c-RAN include FH overhead, trust issues, security concerns, and a single point of failure. A failure in the CU could impact a wide coverage area.

By introducing virtualization, the BBU abstracts the physical hardware, creating virtual instances of the RAN elements. Virtualization enables the implementation of new technologies such as software-defined networks (SDNs) and network function virtualization (NFV). It allows for automatic deployment of elements, rapid scaling with service management and orchestration (SMO), reduced energy consumption, improved service reliability, and better service quality through efficient network resource utilization. In v-RAN, the virtualized BBU (vBBU) connects to the RRU through enhanced CPRI (eCPRI), resulting in lower latency. The vBBU houses the DU and CU software running vertically on COTS hardware. A CU can operate several kilometers away from RUs.

Specialized hardware can utilize Graphical Process Units (GPUs) to accelerate real-time sensitive processing for radio lower layers, supporting mMIMO technologies and AI processes. Although v-RAN can reduce data-processing resources by around 50% compared to c-RAN, a proprietary interface can lead to vendor lock-in, hindering equipment cost competitiveness. v-RAN allows for multi-vendor interoperability with open APIs and network element virtualization, offering unit flexibility and bringing system processing to the network edge through Mobile Edge Computing (MEC) to meet new application requirements. In addition, shared sites reduce MNO investments in hardware or site rentals, saving space and energy consumed by equipment and cooling systems. This solution can be deployed in public or proprietary data centers, reducing costs by leveraging data center infrastructure without concerns about hardware upgrades or additional security implementations.

Open RAN originates from disaggregating hardware and software into segmented and flexible elements along the network fronthaul to the radio antenna [19]. This separation enables multiple vendors to integrate their solutions using the same hardware and be hosted on COTS servers. The topology divides the vBBU into virtual Open RAN DUs (o-DUs) connected to virtual Open RAN CUs (o-CUs) through midhaul, with o-CUs linking to the core through the backhaul. In the fronthaul, enhanced CPRI (eCPRI) connects the o-DU to the RRU, supporting all wireless mobile generations from 2G to 5G and future generations.

The Open-RAN Alliance publishes new RAN specifications, releases open software for the RAN, and supports participating institutions and members in their implementations. This architecture removes the vendor lock-in barrier, allows the integration of different solutions, and reduces the cost of implementation by fostering market competition among manufacturers. The elements utilize open, standardized interfaces, enabling a software-based, virtualized, flexible, intelligent, and energy-efficient network. The collected information facilitates the introduction of automated intelligence to the network through Artificial Intelligence (AI) and Machine Learning (ML). Control and User Plane Separation (CUPS) are functional RAN splits [2]. Network slicing leverages the SDN to manage resources using AI/ML, providing advanced controls through the RAN Intelligent Controller (RIC), making it possible to apply Quality of Service (QoS) and treat each traffic flow in the network differently [20].

The RIC oversees 5G network functions such as network slicing and prioritized communications and introduces programmable components with high-performance optimization and code-loop routines to control and orchestrate the virtual devices in the RAN. In addition, it can use several key performance measurements (KPMs) from the information collected on the infrastructure, process the data, and use AI/ML algorithms to automatically customize and optimize network resources [4]. It can intelligently manage mobility, admission control, and interference. The Near-Real-Time RAN Intelligent Controller (Near-RT RIC) optimizes tasks controlling RAN’s resources, enhancing network resource utilization and user experience. It comprises custom logic applications called xAPPs that collect and process data and compute and return control actions to the resources. Near-RT RIC handles load balance, RB management, interference detection, and mitigation, leading to QoS management, connectivity management, and seamless handover control. The Non-Real-Time RAN Intelligent Controller (Non-RT RIC) includes configuration management, device management, fault management, performance management, and life cycle management for network elements, reducing manual intervention. Third-party applications called rAPPs manage the RAN optimization and control, adding value to the performance, including data analysis, resource configuration management, enrichment information, and policy guidance [4]. Another kind of application, dAPPs, can enable real-time control of the RAN nodes. They collect information from xAPPs to use RAN data that RIC cannot treat [21].

The evolution of mobile network architectures has been driven by the need to address the increasing demands for higher capacity, lower latency, and improved flexibility in network management. In this paper, we present a comparative analysis of four prominent RAN architectures: Open RAN, Cloud-RAN, Distributed RAN, and Virtualized RAN.

2.2.1. CAPEX and OPEX Efficiency

Cloud-RAN is a promising access network technique that can address increased mobile traffic and optimize network performance, offering scalability and heterogeneity management [22].

By centralizing baseband processing, c-RAN can reduce overall CAPEX and OPEX through efficient utilization of resources and the ability to scale computational resources based on demand.

In addition, the integration of software-defined networking and network virtualization in c-RAN and v-RAN architectures can further improve the flexibility and efficiency of the network, leading to significant benefits in terms of cost savings [23].

In contrast, the traditional Distributed-RAN architecture may not be as cost-effective, as it requires the deployment of dedicated hardware at each cell site, resulting in higher CAPEX and OPEX [22,24,25].

Although the Open RAN architecture aims to enable the interoperability of open hardware, software, and interfaces, it also introduces additional complexity in the management and coordination of the distributed components, which may impact overall cost-efficiency [25].

2.2.2. Latency and Reliability

Virtualization of RAN functions in c-RAN and v-RAN architectures can introduce additional latency due to the network delays associated with the centralized processing and transport of data over the fronthaul links.

To address this challenge, the use of advanced techniques, such as edge computing and adaptive functional split, can help to optimize the latency budget and ensure the reliable delivery of critical applications [26].

In contrast, d-RAN architecture generally offers lower latency, as processing is accomplished locally at the cell site, reducing transmission delays.

Open RAN, with its focus on open interfaces and the potential for a more diverse ecosystem of vendors, may introduce new challenges in terms of integrating and coordinating the different components to ensure end-to-end reliability.

2.2.3. Flexibility and Scalability

The c-RAN and v-RAN architectures, with their centralized processing and virtualization capabilities, provide greater flexibility in resource management and the ability to scale the network based on changing demands.

The Open RAN architecture, while offering the potential for more diverse and innovative solutions, may also introduce additional complexity in the integration and coordination of the various components, which can impact the overall flexibility and scalability of the network.

In contrast, the d-RAN architecture may be less flexible as it relies on dedicated hardware at each cell site, limiting the ability to dynamically adjust resources.

In conclusion, each RAN architecture has its own strengths and trade-offs in terms of CAPEX and OPEX efficiency, latency and reliability, and flexibility and scalability.

2.2.4. Energy Efficiency

A key aspect of RAN architectures is their energy efficiency, which is particularly important for sustainable 5G and 6G deployments.

The centralized processing in c-RAN and v-RAN can enable more efficient power management and load balancing, leading to potential energy savings.

On the other hand, the increased reliance on fronthaul networks in these architectures may also introduce additional energy consumption, which needs to be carefully managed.

The distributed nature of d-RAN can lead to higher overall energy consumption, as each cell site requires dedicated hardware and power sources.

The Open RAN approach, with its emphasis on open interfaces and interoperability, may provide opportunities for innovative energy-efficient solutions but also introduce coordination challenges that could impact energy efficiency.

2.2.5. Resource Utilization

Another key consideration is the effective utilization of network resources, such as spectrum and computing power.

The centralized management and coordination in c-RAN and v-RAN can enable a more efficient use of resources through joint optimization and dynamic allocation.

Open RAN, with its distributed architecture and potential for a more diverse ecosystem, may introduce challenges in coordinating resource utilization across the different components, potentially leading to suboptimal performance.

In contrast, localized decision making in the d-RAN architecture can limit overall optimization of resource utilization across the network.

2.2.6. Network Scalability

The scalability of the RAN architecture is a critical factor in addressing the growing demand for capacity and coverage.

The virtualization and centralized management capabilities of c-RAN and v-RAN can provide better scalability, allowing the network to adapt more easily to changing demands and the introduction of new technologies.

The modular and open nature of Open RAN may also enable greater scalability, as the network can evolve with the addition of new components and the integration of emerging technologies.

In contrast, the d-RAN architecture may face challenges in scalability as the deployment of dedicated hardware at each cell site can limit the network’s ability to adapt to changing requirements.

v-RAN, which builds on c-RAN architecture, further enhances the flexibility and scalability of the network by virtualizing RAN functions and leveraging cloud computing technologies.

2.2.7. Deployment Flexibility

The different RAN architectures also offer varying levels of deployment flexibility, which can impact overall cost and time to market.

The centralized nature of c-RAN and v-RAN allows for a more streamlined deployment, as the majority of the processing and management functions are handled in the cloud or central data centers.

In comparison, the distributed nature of d-RAN requires the deployment of dedicated hardware at each cell site, which can be more time-consuming and complex.

The Open RAN approach, with its emphasis on open interfaces and the potential for a more diverse ecosystem of vendors, may provide greater flexibility in deployment, as the network can be built and scaled using a mix of hardware and software components from different suppliers.

2.2.8. Vendor Lock-in Risk

Another important consideration is the risk of vendor lock-in, which can limit the ability to adapt and innovate.

The closed and proprietary nature of traditional RAN architectures, such as d-RAN, can expose operators to a higher risk of vendor lock-in as they become dependent on a single vendor for the entire network infrastructure.

The Open RAN approach, with its emphasis on open interfaces and the potential for a more diverse ecosystem of vendors, can help mitigate the risk of vendor lock-in, as operators can more easily mix and match components from different suppliers.

v-RAN and c-RAN, with their centralized management and virtualization capabilities, can also help reduce the risk of vendor lock-in, as network functions can be more easily migrated or replaced across different cloud platforms or data centers.

Table 1. Key Performance Indicator (KPI) Comparison Matrix.

KPI Category	c-RAN	o-RAN	d-RAN	v-RAN
CAPEX	Moderate	High	Low	Moderate
OPEX	Low	Moderate	High	Low
Latency	Low	Moderate	High	Low
Reliability	Moderate	High	High	Moderate
Flexibility	High	High	Low	High
Deployment flexibility	High	High	Low	High
Network scalability	High	High	Low	High
Energy Efficiency	High	Medium	Low	High
Resource Utilization	High	Medium	Low	High

summarizes the key performance indicators and trade-offs for the different RAN architectures.

3. Current Telecommunications Landscape in Brazil

3.1. Existing Infrastructure

In Brazil, 3G has performed unsatisfactorily due to the vertiginous growth in data transmission rates required to operate new applications on wireless mobile networks, particularly those associated with emerging digital platforms that support innovative social networks.

In 2010, 4G LTE networks began to be introduced, and they became more prominent after 2012. In Brazil, the launch was associated with the implementation of the infrastructure that supported the 2014 World Cup. At the time, 4G networks were developed entirely within the IP concept: they are packet networks using the TCP/IP protocol.

In 2021, Brazil adopted 5G technology. The new companies were forced to adopt the 5G standalone (SA). In the other countries where this occurred, 5G was structured in the Non-Standalone (NSA) version, which means that the core of the network remained based on 4G, and only the Radio (NR—New Radio) was that of 5G (3GPP Release 15). However, companies that began operating in the country before 2021 use the 5G NSA version.

In Brazil, there is a clear need to install new towers, masts, and support platforms on buildings to expand geographical coverage and increase the capacity of the networks currently in operation. This includes facilitating the entry of new companies into the wireless communications market.

Estimates indicate the need to double the country’s infrastructure to meet demand over the next five years. In practical terms, this requires the implementation of an infrastructure equivalent to what has been in place for the last 30 years.

Companies that own tower infrastructure face challenges in expanding. One relates to the legal aspects of nonionizing radiation. In addition, each city in the country has its own legislation on the availability of space for installing telecommunications infrastructure.

According to the regulations in force in several municipalities, a very high percentage of the 92,000 existing base stations is irregular. Some rules state that these towers, which cannot be regularized, must be removed under the threat of being subject to monthly fines, often heavy and recurring, making it impossible to maintain them [27].

There has been a growing understanding of the need to standardize the guidelines for the installation of towers in the country in recent years. This is fundamental and essential to achieve the goals set for the next five years and the general future.

Brazil has 21.3 thousand BS in the 3.5 GHz frequency assigned to 5G, according to Anatel (Agência Nacional de Telecomunicações) [28]. The BS installations are three times the expected amount for the period, with 6.4 thousand in the second half of 2024. According to Anatel, six MNOs have installed BS to cover 1202 cities. The 5G NR coverage reaches 59% of the population and 60.7% of Brazilian houses.

Figure 1 shows the number of gNodeBs for each 5G MNO in Brazil with installed base stations throughout the country. TIM with 8400 gNodeBs in yellow, Algar with 182 gNodeBs in cyan, Claro with 7900 gNodeBs, Unifique in purple with 14 gNodeBs, Vivo with 5300 gNodeBs in blue, and in green Brisanet with 1000 gNodeBs.

The frequencies used in Brazil for wireless mobile networks are shown in

Table 2. Brazilian mobile frequencies [28].

698–960 MHz	700 MHz used for 4G
	850 MHz for GSM;
	900 MHz used for GSM and 3G;
1710–2025 MHz 2110–2200 MHz	Used for GSM, 3G and more recently 4G;
2300–2390 MHz	Tenders for 5G in 2021
2500–2690 MHz	2500 MHz used for 4G (LTE).
3300–3700 MHz	Auctioned for 5G in 2021.
24.3 GHz to 27.50 GHz	Tenders for 5G in 2021

.

There are 66 authorizations for spectrum utilization for private companies in 5G frequencies, as shown in

Table 3. Brazilian authorizations per frequencies [28].

2.390 MHz to 2.400 MHz	34 authorizations, held by 6 companies
3.700 MHz to 3.800 MHz	30 authorizations, held by 6 companies
27.5 GHz to 27.9 GHz	2 authorizations, held by 1 company

.

3.2. Market Players and Competition

A group of multinational companies have formed an alliance called ”Open RAN do Brasil” to promote standards in telecom networks for the technology [29]. The group advocates for a set of goals to accelerate architecture adoption. Other objectives include fostering innovation, creating a competitive and secure ecosystem for 5G, and aligning industry, academia, and research and development institutes, focusing on security and open standards. The remaining companies face challenges in a multi-vendor environment due to various solutions. Open architecture and supplier diversification are common in infrastructure sharing for operators looking to reduce deployment costs.

Developing o-RAN-compatible equipment requires a significant upfront investment in research and development (R&D). Brazilian manufacturers may struggle with these costs, especially given Brazil’s economic challenges and relatively high interest rates [30].

Brazilian manufacturers face stiff competition from established global players that have already invested heavily in o-RAN technology. This includes companies from countries with more developed tech sectors and lower production costs. Although Brazil has a large population, the domestic market for advanced telecommunications equipment is relatively small compared to global markets. This can make it difficult for local manufacturers to achieve economies of scale [31].

Brazil has recently experienced economic instability, making long-term planning and investment difficult for domestic manufacturers. Although Brazil’s technology ecosystem is growing, it is not as developed as other countries. This can make it challenging to create the complex systems required for o-RAN. For Brazilian manufacturers to achieve scale, they probably need to export. However, they may face challenges in meeting international standards and competing in global markets.

3.3. Regulatory Environment

Open RAN was deployed through standardized open network interfaces defined by the Third-Generation Partnership Project (3GPP), o-RAN Alliance, IEEE, and other standards development organizations (SDOs) and industries.

The 3GPP defines Open RAN architecture in 3GPP Release-15, describing the study on New Radio access technology. Release-16 adds wireless relaying with integrated access and backhaul (IAB) and satellite access support, while Release-17 focuses on the RAN evolution and beyond.

The Open-RAN Alliance architecture, a global community of MNOs, vendors, and research and academic institutions, is instrumental in shaping the RAN. The focus of its members on introducing intelligence, openness, virtualization, and interoperability is a key factor in the industry’s evolution. The group’s alignment of software reference development to the Open RAN architecture and specifications is a significant step towards unifying and accelerating RAN deployment and evolution. The o-RAN Software Community, responsible for proposing and testing the integration of solutions, plays a crucial role in this process.

The Telecom Infra Project (TIP), a partner of the o-RAN Alliance, is a testament to global collaboration to accelerate innovation and solution trades for Open RAN. With more than 500 organizations participating in the TIP, including operators, vendors, integrators and start-ups, the work of the group on three strategic areas: access, transport, core and services; is a collective effort. The creation of requirement documents, white papers, and field test results in the TIP reflects this collaborative spirit.

In Brazil, Agência Nacional de Telecomunicações (ANATEL) is the regulatory agency for telecommunications. According to Brazilian law, ANATEL certifies that the RAN equipment is high-quality and secure. Products that transmit radio frequencies are considered to be obligatory for homologation.

4. Challenges and Opportunities in Implementing 5G NR Open RAN in Brazil

The National Broadband Program (PNBL) has three pillars: price reduction, coverage improvement, and speed improvement. The program targets industry sectors, including the spread of regulatory, economic, technological, and national technology [32].

The regulations aim to promote competition among vendors and manufacturers, promote innovative business focusing on the desired services, use adaptable procedures for conflict resolution, create a sharing infrastructure environment, manage public infrastructure and assets, including radio frequency, reduce costs and expand service offers in the telecommunication infrastructure.

The financial sector aims to increase access to credit for small and micro-providers, offer credit for smart-city projects, and reduce taxes on broadband and equipment.

Technology plays a crucial role in the National Broadband Program (PNBL). It proposes to increase tax incentives for national products, provide special conditions loans to businesses through the National Development Bank (BNDES), and use a special fund for contingency interest. These measures not only promote the use of technology but also encourage its development and adoption.

The PNBL, established in decree No. 7175 enacted on 12 May 2010, has eight key objectives. These include enhancing access to the broadband Internet service, accelerating economic and social development, promoting digital inclusion, reducing social and regional inequalities, generating employment and income, expanding state government services, promoting technology training of the population, and increasing technological autonomy and competitiveness in Brazil [33].

4.1. Challenges

4.1.1. Technical Challenges

Aligned with the benefits of 5G, the Brazilian company’s strategies aim to incorporate new 5G features such as private networks, massive IoT (mIoT), edge computing, and network slicing into their development. Transitioning from non-standalone (NSA) to standalone (SA) 5G architecture is challenging, requiring a shift from legacy generations to a multi-user environment. In Latin America, 55% of MNOs plan to upgrade their wireless mobile networks to 5G SA.

The primary challenges include the adoption of technology and the potential barriers to its implementation. Factors influencing the adoption of Open RAN include integration costs and complexity, immature technologies and supply chains, performance trade-offs compared to integrated RAN, risk of standardization, lack of scalability, and security concerns [6].

Developing o-RAN technology requires highly skilled engineers and technicians. Brazil faces challenges in its education system and often experiences a “brain drain”, which could limit the available talent pool for domestic manufacturers. Many components needed for the o-RAN equipment may need to be imported, exposing manufacturers to currency fluctuations and potentially high import taxes, which are common in Brazil [34]. o-RAN relies heavily on patents and intellectual property. Brazilian manufacturers may face challenges in navigating this landscape and must pay significant licensing fees.

The demand for new applications may require reallocating investments from the RAN to new infrastructure costs. Therefore, accelerating and simplifying the development of new services, solutions, and business models for customers is essential to ensure a return on investment for the MNO.

The main technical challenges are as follows:

• System Integration Complexity: o-RAN introduces a disaggregated architecture, which requires the integration of components from multiple vendors. The integration can lead to interoperability issues and increased complexity in system integration [35]. The regulatory agencies might be present in the discussions with the development group to achieve an agreement and make the integration between different vendors easily supported and in-coded prepared.
• Performance Optimization: Ensuring that the disaggregated components work together efficiently to deliver performance comparable to or better than traditional RAN solutions is a significant challenge [36].
• Security Concerns: The open nature of o-RAN can potentially introduce new security vulnerabilities that need to be addressed [15].
• Operational Complexity: Managing a multi-vendor o-RAN environment can be more complex than traditional single-vendor solutions, potentially increasing operational costs [37].
• AI/ML Integration: Implementing and optimizing AI/ML algorithms for network management and optimization in o-RAN can be challenging [38].
• Fronthaul Network Requirements: o-RAN’s split architecture places higher demands on the fronthaul network in terms of bandwidth and latency [39].
• Energy Efficiency: Ensuring that the disaggregated o-RAN architecture is as energy efficient as traditional RAN solutions is crucial for operational costs and environmental considerations [40].
• Spectrum Efficiency: Optimizing spectrum usage in a multivendor o-RAN environment to ensure efficient utilization of this valuable resource [41].

4.1.2. Economic Challenges

The 5G NR aims to boost MNOs profits by providing more extensive data services. High-speed services are appealing to users, including new services such as augmented reality or virtual reality (AR/VR) and QoS Service Level Agreement (SLA) [42].

The sum among the MNOs, Claro, Vivo, and TIM, was approximately BRL 121 billion in 2023, which is 8.5% higher than in the previous year. The year before was the year of the largest percent growth. TIM had BRL 23.83 billion, which is 10.7%. The significant growth between the MNOs was Vivo’s BRL 52.1 billion, which was 8.4%, and Claro’s BRL 45.6 billion, which was 7.41% higher [43].

In Latin America, the profit from the 5G implementation is projected to reach around USD 60 billion by 2030, which represents about 0.9% of the region’s Gross Domestic Product (GDP). This technology will drive greater digitalization and significant economic growth. The benefits of 5G include improved health access, education, advancements in the manufacturing industry, and faster response times for public security services, traffic, and pollution control.

Adopting Open RAN is already in demand, as the new solutions require networks that can accommodate dense device connections and low latency. Moreover, CAPEX investment to expand coverage may prioritize mMIMO for enhanced spectral efficiency and reach, reducing transmission power consumption. Energy costs make up 20 to 40% of an MNO’s OPEX. The new RUs have features that enable Artificial Intelligence (AI) to regulate power usage at a cell site, such as beamforming, thus reducing the company’s power expenses.

It is worth noting that Brazilian companies may see limited benefits from open technology. Large multinational companies with operations in the country will likely attract more investments. Domestic manufacturers could be an incentive to acquire expertise and develop competitive products, transforming their national standing from followers to technology leaders. Brazilian companies often face challenges in accessing affordable capital for long-term investments. This can be particularly problematic for o-RAN technology development’s high risk–high reward nature.

The main economic challenges are as follows:

• Performance trade-off—Quality and equipment cost in return for the end user’s better rates and service excellence.
• Integration costs—Interoperability configurations and adaptation cost to workability.
• Lack of knowledge/experience—Network deployment and configuration require high expertise in managing and preparing the network. In some cases, the cost of failure can make the project impracticable and waste resources, time, and equipment.

4.1.3. Regulatory Challenges

Brazil’s regulatory environment for telecommunications can be complex and subject to changes. This uncertainty can make long-term investments in o-RAN technology risky for domestic manufacturers [34].

Complex procedures involving multiple approval layers may result in additional charges, causing delays in network implementation. Political factors may ensure that regulatory requirements for local implementations align with national and market interests.

Policymakers may introduce flexible and lenient regulations to foster an investment-friendly environment and encourage innovation in the wireless mobile sector, for example, by simplifying procedures and guidelines for the acquisition of site locations, collocation, updating base stations and granting access to public/government areas for the installation of antennas and fiber cables. Another approach is facilitating network-sharing agreements, avoiding mandatory actions [42].

4.2. Opportunities

The 5G technology is transforming the Brazilian national economy as its implementation expands, opening opportunities for its improvement. The anticipated effects are estimated to reach around USD 60 billion by 2030, equivalent to approximately 0.9% of the GDP. These effects will be felt in various sectors, including improved access to healthcare and education, advances in the manufacturing industry, enhanced public security responses, improved traffic conditions and driving safety, and reduced pollution [42].

The primary sectors directly affected by implementing Open RAN in Brazil include agribusiness, smart cities, technology, media and telecommunications, gas and energy, utilities, transportation and logistics, and manufacturing. Substantial economic benefits are expected to facilitate the adoption of Industry 4.0 practices and the implementation of private networks.

The distributed topography of rural areas certainly improves the Open RAN deployment network economy. Removing vendor lock-in and enabling network sharing allows deployment in regions with low population density, reducing CAPEX and saving on OPEX. Virtualization and the built-in ability to update equipment remotely make it even more sense in a geographically dispersed network [44].

The topology utilized by Open RAN allows for the distribution of the processing solution at the network’s edge, enabling applications with strict requirements to meet their goals and become achievable. Some ultra-reliable low-latency communication (uRLLC) requirements include transmitting data end-to-end within 1 ms with ${10}^5$ reliability. The RAN must be meticulously configured and ready to support the UEs attached to the gNodeB to achieve this level of performance. Edge cloud computing technology can facilitate the relocation of the virtualized solution closer to the UEs, thus reducing latency and errors across the 5G network infrastructure.

One of the significant advantages of Open RAN is the sharing of base stations, transport links, and data centers. The factors that sustain this model are economic benefits, long-term relationships, and a focus on management and operation. Due to infra-sharing, we have CAPEX and OPEX optimization, no duplication of equipment, reduced service costs, scalability, and implementation savings [27].

5. Implementation Strategies

5.1. Government Initiatives and Policies

The Brazilian government typically supports new technologies that are highly attractive, have positive effects on the existing landscape, advance in other government sectors, creating initiative plans to accelerate the introduction of technology and facilitating its implementation and evolution. In addition, laws can be adapted to support the deployment of new technologies, removing regulatory barriers.

The general telecommunication law, Article 19th, Lines I and XXXII, establishes that ANATEL may implement national policies and periodically revalidate them to promote market competition and technological evolution. In 2021, the government created a policy rule called ”Portaria n.º 1.924 - MCOM/2021, de 29 de Janeiro de 2021,” which, as per the second article was established to incentivize the network’s openness to promote interoperability and multiple manufacturers in solution integration [5].

Spectrum assignment strikes a balance between government objectives, MNO requirements, and consumer welfare. Some decisions were based on supporting the current network, attracting players, and guaranteeing excellence for users [45]. The crucial aspects are as follows:

• Longer license terms;
• Secondary spectrum market;
• Unlimited renewal terms.

5.2. Industry Collaboration and Partnerships

Some industries create groups to collaborate with regulatory agencies in developing RAN technology. This collaboration fosters a shared interest among manufacturers, ensuring the performance and quality expected by customers. The decision also helps eliminate a single manufacturer’s monopoly over the technology a MNO uses. Consequently, this approach promotes vendor interoperability and diversity, leading to innovative solutions at a competitive price.

5.3. Spectrum Allocation and Management

Spectrum allocations are essential for a country’s digital transformation. This directly and indirectly impacts the region, benefiting users and the economy. However, restricting, delaying, or increasing the cost of spectrum access can hinder infrastructure deployment or diminish its quality. In 2021, 1920 MHz of spectrum was allocated for national coverage licenses [46].

5.4. Infrastructure Development Plan

The success of o-RAN depends on a robust supporting infrastructure, including high-speed internet backbones. Brazil’s infrastructure limitations could slow o-RAN adoption, reducing the market for domestic manufacturers [47].

The Brazilian government has created a development plan to create better opportunities and improve the quality of life of all Brazilians. One of the enabling axes is the “Infrastructure and access to Information and Communication”. Its general objective is to expand the population’s access to the Internet and digital technologies and to provide quality service and affordability. The specific objectives are as follows:

• Bring high-capacity data transport networks to all Brazilian municipalities;
• Expand the mobile and fixed broadband access networks in urban and rural areas;
• Disseminate digital inclusion initiatives.

The Brazilian Digital Transformation Strategy (E-Digital) is updated every 4 years and is provided in Article 3 of Decree No. 9319/2018. It establishes the National System for Digital Transformation (SinDigital). E-Digital is collaborative, multi-institutional, and multi-sectorial. The main challenge is to accelerate the digital transformation, giving everyone an opportunity [48].

E-Digital complies with enabling experts and spreading the technology knowledge among them, and the digital transformation involves strategies to transform government and economic activities through technology enablement digitally.

The biggest challenge on this axis is expanding the network to reach remote areas. It also needs to provide quality and speed for broadband and mobile Internet. Figure 2 informs the Multimedia Communication Service (MCS) speed bands in Brazil and the backbone fiber route.

5.5. Pilot Projects in Brazil

Some MNOs had their pilot projects implemented and tested starting in 2020. The TIM operator carrier, TIP, and INATEL Institute organized a study to test Open RAN technology. The test evaluated the state-of-the-art industry and the maturity levels of the vendors [49].

In another pilot test in 2020, MNO Telefonica Vivo with Altiostar and Mavenir started a project to test the technology in a 4G wireless mobile network that overlays existing 3G infrastructure. This compiles past technology into new solutions, allowing 3G to be turned off in the future [50].

Algar Telecom created a pilot test for an Open RAN environment with IBM, Flex, and FIT. The pilot project aims to simplify the network infrastructure using virtualization and clouds. It was intended to extend the 4G coverage of MNO and prepare for 5G implementation [51].

The Claro pilot project with Huawei and SLC Agrícola aimed to enable an agricultural private 5G IoT network. This project tested high-resolution cameras, drones, and sensors aggregated in machines to increase rural productivity. The study helps sustainability by reducing the farm’s consumption of power, water, and pesticides using new solutions such as drones, robotics, AI, and cloud and edge computing [42].

5.6. Lessons from International Implementations

The wireless mobile network with a Hotspot Network can initially support 2G/3G/4G technologies and later upgrade to a 5G SA network. This strategy can enable faster network deployment and migration to 5G and beyond networks with minimum TCO in locations where ARPU is the technology roadblock.

The research of Analysys Mason [6] shows the 11 factors cited by 15% of 107 global operators on how the Open RAN can improve their business model. The top three results were obtained from TCO, new services, and the ecosystem. The international operators had factors that could influence overall business and attract new users as return on investment.

As return on investment, international operators had factors that could influence overall business and attract new users. The are as follows:

• Less time on the mixed vendors network, enabling services, especially in business services.
• Facile escalation of new demands and usage cases.
• Higher capacity in edge cloud integration.
• Lesser cost in network management.
• Network automation.

From lessons learned from other countries, England stimulates competition and innovation in the telecommunication chain. This means that the model is based on open interfaces and inter-operable standards. South Korea, Japan, and China invest heavily in direct investments, integrating private entities and research institutes through politics and tax incentives. In the United States of America, the focus is on protecting the internal market from external competitors and encouragement of other nations to cooperate with their actions.

6. Open RAN Costs in Brazil

For RAN, MNOs spend around 60–80% on CAPEX [52] that will never be up to date with the latest versions of the solutions. A survey by the China Mobile Research Institute found that it is possible to save up to 15% of CAPEX and 50% of OPEX by modifying the network structure and adopting c-RAN. In another example, using Open RAN, OPEX can be reduced by 63%, CAPEX by 68%, and TCO by 69% compared to the traditional scenario.

6.1. Total Cost of Ownership (TCO)

TCO is a cost assessment metric that aims to calculate the assets related to the mobile network infrastructure. This metric addresses the actual cost by attributing it to the management and infrastructure of telecommunications, comprehensively considering initial capital and operating costs, among other components that complete a base cost estimate [53]. Regarding estimating the base cost, the TCO works according to some requirements, which together form the total assessment model. These requirements include the costs of equipment purchase, installation, infrastructure, energy, maintenance, and support, among others [53]. TCO covers two metrics, details of implementation and operation parameters: CAPEX, which represents the costs related to the acquisition and implementation of equipment, and OPEX, which means the costs associated with energy consumption, physical space renting, maintenance, and risk management of a telecommunications infrastructure.

For CAPEX and OPEX, the following costs participate in this calculation:

• CAPEX

• RU costs, DU costs, CU costs;
• 5G network core cost;
• Equipment cooling costs;
• Antenna tower construction costs.

• OPEX

• Electrical costs;
• Operation and maintenance costs;
• Equipment and site rental costs;
• License and SW costs and updates;
• Cost of renting an area for the sites.

The cost in Open RAN architecture is not presented as equipment but rather as the virtualization of the elements, servers that host the virtualized solution, and the rental or construction of sites for the data centers depending on the number of Open RAN sites, DU sites, CU sites, and the location of the virtualized core of the network. It is also possible to predict the number of servers for each virtualized module of the network and the number of racks needed to organize these servers within the data center.

The backhaul, midhaul, and fronthaul interconnection can be customized using other technologies, such as radio links or diversity in the optical transmission medium. For this example, we demonstrate the traditional model of fiber optic connection between the RAN elements.

6.1.1. CAPEX Calculation

To calculate the Open RAN CAPEX, we have

$$\begin{array}{c}\hfill CAPE{X}_{o-RAN}^{5G}=N_{DPC}·(C_{DPCbuild}+C_{DPCequip}+C_{CW}^{DPC})+N_{site}·(C_{site}^{o-RAN}+C_{CW}^{site})\\ \hfill +C_{optic}+C_{soft}+C_{5GC}+C_{5GC}^{cool}+C_{CWcore}\end{array}$$

(1)

where $N_{DPC}=ceil(N_{site}/N_{site}^{DPC})$ is the rounding operation and $N_{site}^{DPC}$ is the number of sites within a 15 km radius of a data center.

To calculate the number of racks in a datacenter, $N_{rack}^{DPC}$, we have

$$N_{rack}^{DPC}=ceil\left({\displaystyle \frac{ceil(N_{site}^{DPC}\ast \frac{N_{RU}}{N_{RU}^{DU}\ast N_{vDU\to DU}})+ceil(N_{site}^{DPC}\ast \frac{N_{RU}}{N_{DU}^{RU}\ast N_{CU}^{DU}\ast N_{vCU\to CU}})}{N_{serv}^{rack}}}\right)$$

(2)

where $N_{DU}^{RU}$ is the number of virtual DUs served per CU, $N_{vCU\to DU}$ is the number of virtual DUs hosted in a Physical DU, $N_{vCU\rightarrowtail CU}$ is the number of CUs hosted on a physical server CU, $N_{serv}^{rack}$ is the maximum capacity supported by a physical server.

For the cost of building a data center, we have

$$C_{DPCbuild}=C_{rack}^{Tier}·N_{rack}^{DPC},$$

(3)

where $C_{rack}^{Tier}$ is the cost of building a data center in terms of racks for the required level of resilience.

As for the total cost of equipment in the data center, we have the following:

$$C_{DPCequip}=T{C}_{DU}^{DPC}+T{C}_{CU}^{DPC}+C_{cool}$$

(4)

where $T{C}_{DU}^{DPC}$ is the total cost of DU servers installed in a data center and $T{C}_{CU}^{DPC}$ is the total cost of CU servers installed in a data center. In this case, the total cost is the number of servers multiplied by the cost of implementing the unit plus the cost of the Ethernet interface.

Included in the data center cost $C_{CW}^{DPC}$ is the installation cost, which is 25.

Also, we add $C_{site}^{o-RAN}$ to the cost of the Open RAN site, which is

$$C_{site}^{O_{R}AN}=N_{RU}·C_{RU}+C_{mast}$$

(5)

with the number of RUs added to the radio cost plus tower construction. On the same o-RAN site, we have the labor cost calculated:

$$C_{CW}^{DPC}=0.2·(N_{RU}·C_{RU})$$

(6)

where $C_{soft}$ is the cost of purchasing the software:

$$C_{soft}=N_{site}·N_{RU}.C_{soft}^{RU}+N_{DPC}·(N_{DU}^{DPC}·C_{soft}^{DU}+N_{CU}^{DPC}·C_{soft}^{CU})+C_{5GCSoft}$$

(7)

where $C_{soft}^{RU}$ is the cost of the software of a RU, $C_{soft}^{DU}$ is the cost of the software of a DU, $C_{soft}^{CU}$ is the cost of the software of a CU, and $C_{5GCSoft}$ is the cost of the 5G core software.

6.1.2. OPEX Calculation

Since the cost of building data centers is very high and it is possible to hire a public cloud server, the expenses related to renting data centers, racks, or servers to host virtualized solutions can be included in the OPEX calculation.

To calculate the OPEX of Open RAN, we have

$$OPE{X}_{o-RAN}^{5G}=C_{W/h}·P+N_{site}·C_{rent}^{site}+L_{optic}·C_{lease}+N_{DPC}·C_{rent}^{DPC}+C_{OEM}+C_{wages}+C_{soft}^{UP}$$

(8)

The energy expenditure costs are

$$P=0.6·N_{year/hour}·(N_{site}·P_{site}+N_{DPC}·P_{DPC}+P_{5GC}+P_{5GC}^{cool})$$

(9)

where $P_{DPC}$ is the energy consumed by a given datacenter calculated by

$$P_{DPC}=N_{DU}^{DPC}·P_{DU}^{IXD}+N_{CU}^{DPC}·P_{CU}^{IXD}+P_{cool}$$

(10)

where $P_{DU}^{IXD}$ is the power consumed in a DU, $P_{CU}^{IXD}$ is the power consumed by a CU, and $P_{site}$ is the power consumed by a site.

We also add $C_{rent}^{site}$, which is the land allocation cost, and $C_{rent}^{DPC}$ is the site rental cost for a data center.

For operation and maintenance costs, we have

$$C_{OEM}=C_{percent}·(N_{site}·(N_{RU}·C_{RU})+N_{DPC}·(C_{DPCequip}+C_{cool})+C_{5GC}))$$

(11)

where $C_{soft}^{UP}$ is the annual cost of software updates, including 30% of the software cost.

In this model, costs such as security and monitoring, referenced in the d-RAN model, can also be entered.

6.2. Open RAN Cost

We can estimate the Open RAN implementation costs using the aforementioned TCO cost calculation in real values. In

Table 4. Equipment costs in 2024.

Equipment	CAPEX	OPEX	Variation	Duration
Rural Mast	R$ 539.052,04	6.12%	2.78%	10
Rural Roof Mast	R$ 174.480,04	18.92%	2.78%	10
Urban Mast	R$ 441.944,47	8.66%	2.78%	10
Urban Roof Mast	R$ 174.480,04	28.54%	2.78%	10
SmallCell Mast	R$ 23.218,89	4.56%	2.78%	10
Macrocell 5G	R$ 131.223,87	7.84%	−1.63%	5
SmallCell 5G	R$ 89.875,55	4.56%	−1.63%	5
Rack	R$ 185.892,25	29.69%	−1.63%	5
Backhaul DWDM 10 Gbps	R$ 112.992,13	17.60%	−0.08%	5
Optic Fiber (km)	R$ 57.193,89	4.80%	−0.08%	20

, we have the equipment costs for CAPEX, in OPEX expressed in percentages of cost, the estimated variation for the following years, and the useful life of the equipment.

The following calculation uses a small city scenario where we have five cells in the 5G network:

$$\begin{array}{c}\hfill CAPE{X}_{o-RAN}^{5G}=N_{DPC}·(C_{DPCbuild}+C_{DPCequip}+C_{CW}^{DPC})+N_{site}·(C_{site}^{o-RAN}+C_{CW}^{site})\\ \hfill +C_{optic}+C_{soft}+C_{5GC}+C_{5GC}^{cool}+C_{CWcore}\end{array}$$

(12)

7. Future Outlook

7.1. Projected Timeline for Nationwide Implementation

The technology is expected to be implemented in about 170 thousand sites in Brazil. In total, 88 thousand 2G/3G/4G/5G macrocell sites and 82 thousand 5G smallcells are expected to be held by 2032 [54].

Table 5. Brazil 5G forecast numbers [42].

	2025	2030
5G Mobiles	36.2 million	179 million
5G Adoption	16%	77%
5G Economic	US$ 5 billion	US$ 26 billion
Contribution	0.3% GDP	1.2% GDP
5G Coverage	47%	84%

informs the actual and expected number of 5G mobiles, adoption percentage, economic contribution of 5G, and coverage of 5G by 2030.

7.2. Potential Impact on Various Sectors

With 5G, approximately BRL 590 billion is expected in revenue from several Brazilian economic sectors, mainly in the industry, agribusiness, public administration, and public health. The latest technology will enable innovative services and transform agribusiness that represents about 66% of the market [5].

In the agricultural sector, the 5G NG RAN is expected to enable precision agriculture on a larger scale. The enhanced connectivity offered by 5G could support using drones, IoT sensors and automated machinery in rural areas, potentially increasing agricultural productivity and efficiency [55]. Furthermore, the low latency and high bandwidth of 5G could facilitate real-time monitoring and data analysis, allowing farmers to make more informed decisions about resource allocation, pest control, and crop management [56]. The manufacturing sector is another area poised for transformation since 5G NG RAN could facilitate the implementation of Industry 4.0 concepts in Brazilian factories, supporting the use of mobile assets, edge computing, and artificial intelligence [57]. The ultra-low latency and high reliability of 5G networks could enable real-time control of machinery, augmented reality applications for maintenance, and more efficient supply chain management, potentially boosting productivity and competitiveness in the global market. In Brazil, there was an expectation that the implementation of Industry 4.0 would be faster, which was not confirmed. The country is still struggling to adapt to Industry 3.0. Not only economic crises, but also factors such as lack of employee engagement, fear, and skepticism hinder the implementation process [58].

In the transportation sector, 5G NG RAN could enable the development of intelligent transportation systems, including autonomous vehicles, traffic management, and smart infrastructure [59]. In smart cities, 5G NG RAN could be crucial in improving urban infrastructure and services. The potential of 5G to support applications such as intelligent traffic management, efficient energy distribution, and improved public safety systems could lead to more livable and sustainable cities in Brazil [60]. These advancements could lead to cost savings for municipalities and improved quality of life for citizens, indirectly contributing to economic growth. The healthcare sector is another area where 5G NG RAN could have significant financial impacts. The potential of 5G to enable telemedicine applications, remote surgeries, and real-time patient monitoring [61]. These innovations could improve access to quality healthcare, including telediagnosis, and telehabilitation [62], especially in underserved rural areas, reducing costs and improving patient outcomes. In addition, 5G NG RAN could enable more efficient fleet management in the transportation and logistics sector. These advances could lead to reduced transportation costs and improved safety, which could have positive economic ripple effects in various industries relying on logistics. The financial services sector could also see significant changes by implementing 5G NG RAN. The high-speed, low-latency networks could support more secure and efficient mobile banking services and other financial applications, potentially increasing financial inclusion and economic activity.

With network slicing, the technology enabled by the open RAN utilization, it is possible to configure different networks isolated from each other inside the same subsystem infrastructure. Configuration of priorities through QoS utilization and facilitation of emergency data transfer can lead to this communication being treated as a priority from all traffic in the transport link. This service can help the Public Protection and Disaster Relief forces, called Mission Critical communications [63], keeping the service active even in an overloaded network, enabling data, voice, and video in extreme circumstances [64]. Other services that can benefit from network slicing are inside the 4.0 Industry. They include industrial automation, smart homes, smart cities, intelligent transportation, virtual and augmented reality, smart grid, smart factories, smart warehouses, and security [65]. Most of them use massive Machine Type Communication (mMTC), where machines communicate and interact, controlling and acting in different environments autonomously, making decisions and exchanging information from machine to machine to make it a reality [62].

8. Conclusions

The Open RAN technology enables new solutions and applications to be implemented by processing data on the network edge, reduces latency with an almost zero error rate. It also facilitates resource sharing, making it profitable in areas with low demographic density where 5G NR coverage is challenging due to the high investment required for the equipment.

Given its importance in the country’s development plan, the Brazilian government could expedite the adoption of Open RAN technology by removing barriers. The process might be easy and quick, facilitating the ignition of start-ups, supporting them to produce the national technology, and developing a national production culture. The regulations and market insertion must be advised and explored by the great MNOs. Access to digital technologies must be fast, reliable, and affordable for all populations. MNOs should prepare their networks for the new requirements of this technology to offer services that can generate new business opportunities and benefits for the population in various industry sectors. This initiative can create opportunities for research on achieving nationwide coverage in different regions of the country and exploring ways to meet new solution requirements or customize network topology to enhance delivery speeds and reduce latency, ensuring a high QoE.