ORAN Drives Higher Returns on Investments in Urban and Suburban Regions

Priyanka Sharma, Edward J. Oughton and Aleksan Shanoyan

Papers from arXiv.org

Abstract: This paper provides the first incentive analysis of open radio access networks (ORAN) using game theory. We assess strategic interactions between telecom supply chain stakeholders: mobile network operators (MNOs), network infrastructure suppliers (NIS), and original equipment manufacturers (OEMs) across three procurement scenarios: (i) Traditional, (ii) Predatory as monolithic radio access networks (MRAN), and (iii) DirectOEM as ORAN. We use random forest and gradient boosting models to evaluate the optimal margins across urban, suburban, and rural U.S. regions. Results suggest that ORAN deployment consistently demonstrates higher net present value (NPV) of profits in urban and suburban regions, outperforming the traditional procurement strategy by 11% to 31%. However, rural areas present lower NPVs across all scenarios, with significant variability at the county level. This analysis offers actionable insights for telecom investment strategies, bridging technical innovation with economic outcomes and addressing strategic supply chain dynamics through a game-theoretic lens.

Date: 2024-12
New Economics Papers: this item is included in nep-gth and nep-ure
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