How does Cloud RAN impact overall site footprint and hardware requirements?

Cloud RAN fundamentally changes the architecture of how radio access networks are deployed by shifting significant processing workloads from distributed sites to centralized data centers. By centralizing baseband processing, Cloud RAN enables operators to handle multiple remote radio heads (RRHs) from a single location, significantly reducing the need for extensive physical infrastructure at each cell site.

This centralization leads to a decrease in the number of dedicated hardware components required at each individual site. Rather than having all elements—such as computing resources, storage, and networking hardware—installed at every site, operators can leverage more efficient hardware configurations in centralized facilities. Consequently, this consolidation not only minimizes the physical space needed at local sites but also optimizes the utilization of resources across the entire network.

As a result, the correct understanding highlights that implementing Cloud RAN effectively reduces the physical space requirements, leading to a more streamlined and efficient operational footprint.