Based on our quarterly tracking of the broader mobile infrastructure market and telecom capex, we estimate RAN accounted for nearly a fourth of total wireless capex in 2021. This ratio was averaging closer to a fifth in the LTE era. But it is trending upward due to a confluence of factors. The reality is that cement, steel, services, and other equipment in aggregate are driving the majority of the capex. Meanwhile, cumulative site opex to support recurring costs such as transport and site leases, electricity, O&M, and other services are collectively fairly comparable in size to the capex component. Consequently, we estimate that RAN as a share of the combined capex and site opex is in the 10% to 15% range on average.
Can O-RAN compatible radios introduce any cost savings?
Factoring in the volume-discount sensitivity rates and conversations with a variety of participants in the RAN ecosystem, we believe it is unlikely that the 7.2x radio BOM will be smaller than the non-O-RAN compliant radio BOM with similar functional splits. Short-term and long-term cost savings are still possible, but they will be more driven by margin reductions than BOM savings.
https://www.fiercewireless.com/tech/how-can-open-ran-improve-total-cost-ownership