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“Unfortunately, in a brown field environments it is not just a technology or commercial issue but of traditional operator mindset and existing closed vendor interfaces,” said Pardeep Kohli, President & CEO, Mavenir, in a Linkedin post, claiming that the company can now offer a competitive product at a competitive price for any new sites that a brownfield telco wants to build.
“For example, whole state of Texas could be given to Ericsson<\/a> and state of Oklahoma could be given to Nokia<\/a>. In some cases, if a consumer drove from Texas to Oklahoma, even the handover across vendors may not work,” Kohli said.
He added that because of restrictions, existing vendors monopolise their hold on the market, and in some cases, have maintained their market share from 2G to 3G to 4G, and now 5G.
“For a new vendor to come in, the operator has to swap existing vendor for all equipment generations. As the complexity and the cost increases, there is a huge entry cost for a new vendor and as a result this whole market is largely static if we ignore swaps due to geopolitical issues,” he said.
Open Radio Access Network<\/a> allows the disaggregation of networks components, allowing telcos to source source them from various vendors to build out networks which prevents vendor lock-in-like situations while also promoting diversity in the telecom gear industry which has for years been dominated by Sweden’s Ericsson, Finnish Nokia, and China’s Huawei and ZTE.
Mavenir on Tuesday announced that the company has closed a $100 million capital raise round, which was anchored by its largest equity holder, Siris, as well as two unnamed strategic ecosystem partners.
\"We said we'll do the software and there'll be a bunch of Chinese companies that will build good hardware and we can have a combination that works,\" Kohli told US-based telecom publication Light Reading in an interview, adding that China had reserved a tenth of its market for smaller players.
He pointed out that radios are generally sold through incumbents such as Ericsson and Nokia, which already have their own radio products. However, after 2018, geopolitical shifts took out China and its radio from the picture, as per the report.