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vRAN: Altiostar

Gubbins, Ed
August 24, 2020

MARKET DISRUPTOR

REPORT SUMMARY
Altiostar has a rare level of credibility in the area of RAN virtualization. As vRAN activity increases, aided in part by the Open
RAN movement, this credibility positions Altiostar to benefit more than most.

WHAT MAKES THE COMPANY A DISRUPTOR


Altiostar has been promoting RAN virtualization longer than any other equipment vendor (some eight years now), so
it has earned a unique level of credibility that it can wield as interest in vRAN grows in 2020. The vendor’s role
supplying the nationwide vRAN deployment of Japanese operator Rakuten serves as an important global showcase of
both vRAN's value proposition and Altiostar’s capabilities. At the same time, as momentum continues to grow for the
burgeoning Open RAN movement, which facilitates vRAN by fostering a complementary ecosystem of radio
hardware, Altiostar is well-positioned to benefit as much or more than any other vendor.

JUST THE FACTS


Founded 2011
Funding Private
HQ Tewksbury, Massachusetts
Employees ~400
Geographic Based in the U.S., Altiostar is a global vendor with offices in India, Mexico, Japan, Italy, and the
Reach UK.
Key Products • Radio Access Software: Baseband processing software residing on general-purpose
commodity servers.
• Network Management System: Software supporting network management, configuration,
monitoring, optimizing, and troubleshooting.
Momentum • In Q2 2020, Altiostar’s vRAN solution was chosen to supply DISH Network’s planned nationwide
U.S. 5G network and deployed by Indian operator Bharti Airtel.
• As of June 2020, Japanese operator Rakuten – supplied by Altiostar – had activated 5,739 sites in
its high-profile vRAN network, with contracts signed to add another 7,487 sites.
• In 2020, Altiostar hailed multiple partnerships meant to drive the Open RAN ecosystem, including
with NEC, Airspan and even its direct competitor, Mavenir.
GO-TO-MARKET STRATEGIES
• vRAN + Open RAN: Altiostar has aimed to leverage the growing Open RAN movement (favoring disaggregated,
multi-vendor RANs), which aligns well with vRAN architectures and frees Altiostar to focus on providing software,
while third-party vendors supply the necessary radios and other hardware.

• Hardware Partners: In keeping with its open RAN strategy, Altiostar has cultivated a stable of partners -
including BaiCells, Comba Telecom, Commscope, Fujitsu, MTI Mobile, and more - ensuring smooth interoperability
between Altiostar software and their radios and other hardware while open RAN standards develop. It also employs
the packet core platform of Cisco, an investor in Altiostar.

KEY CHALLENGES
• vRAN Reluctance: Some operators are hesitant to adopt vRAN, since (a) it represents a major departure from
their networks' historical architecture and (b) they hear arguments against vRAN's value from some established RAN
vendors.

• Open RAN Reluctance: Some operators will be reluctant to adopt a multi-vendor open RAN model, as it may be
more complex in terms of network management and supplier relationships than traditional single-vendor networks.

• Startup/Pure Play: Some operators are cautious about working with small firms whose resources could make
support of large-scale deployments challenging and whose long-term stability is hard to predict.

• 5G Incumbent Advantage: The first wave of 5G deployments is based on non-standalone 5G, whose reliance on
4G cores gives an advantage to incumbent 4G network suppliers, making it harder for new entrants like Altiostar to
break in.

ASSESSING THE MARKET LANDSCAPE


For years, mobile network operators have been virtualizing aspects of their networks - replacing dedicated,
specialized network hardware with software functions residing on general-purpose, commodity servers. Virtualization
can lower the cost structure of networks and give operators more flexibility and agility in making changes. In the
early stages of this trend, operators focused on virtualizing more centralized parts of the network, including the
packet core. Over time, focus has shifted to virtualizing the radio access network (RAN). But RAN virtualization
entails a different set of considerations than virtualizing other parts of the network (e.g., separating centralized
versus distributed functions, etc.).

Increasingly, some vendors, including startups, have seen vRAN as a way to disrupt the market and compete with
traditional RAN vendors that are naturally resistant to dismantling the cost structure of their hardware-based
businesses. The task then for vRAN proponents has been to convince mobile operators to usher in this major
departure for network architectures - a task that is still ongoing but appears to be getting easier, as evidenced by
the rising level of vRAN activity, including operator trials and deployments. In addition, the progress being made by
vRAN showcase deployments such as Rakuten’s in Japan are helping to popularize the concept.

RELATED GLOBALDATA RESEARCH


• Altiostar and Mavenir Push to Exploit Huawei's Woes in the U.S.

• NEC Pairs Netcracker and Altiostar for a More Cohesive Open vRAN Offering
• Samsung Takes the Lead in vRAN Commercialization, Adding Fuel to Disruptive Market Forces

• Nokia Breaks from Top Rivals, Driving vRAN & ORAN Disruption

• MWC-LA19: vRAN Momentum Rising

• Mavenir Analyst Day: Evolving Its Broad Virtualization Story, Mavenir’s RAN Capabilities Are Ramping Up

FINDING THE DISRUPTORS


GlobalData’s ‘Market Disruptor’ series of reports recognize up-and-coming vendors offering a new approach to the
market as identified by our analysts. The vendors chosen as ‘Market Disruptors’ share some or all of the following
characteristics:

1) They challenge the status quo of an established industry segment.


2) They are embracing innovative, new operating models.
3) They are seeking to define and monetize an entirely new segment or revenue opportunity.
4) They are looking to redefine the segment's value chain.
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information and opinions contained herein have been based on information obtained from sources believed to be reliable, but such accuracy cannot be
guaranteed. All views and analysis expressed are the opinions of GlobalData and all opinions expressed are subject to change without notice. GlobalData does
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