What infrastructure change does Cloud RAN facilitate?

Cloud RAN, or Cloud Radio Access Network, promotes the centralization of baseband processing resources. This approach allows multiple remote radio heads (RRHs) to connect to a centralized processing unit located in a data center or cloud environment. By consolidating baseband processing, operators can capitalize on economies of scale, improve efficiency, and enhance overall network management.

Centralization enables the sharing of resources across multiple sites, which not only reduces hardware costs but also optimizes the use of advanced technologies such as virtualization and software-defined networking. This facilitates more agile responses to changing network demands and improved service delivery, as baseband functions can be dynamically allocated based on real-time traffic conditions.

The emphasis on centralization also aligns with the broader trends in telecommunications toward network virtualization and the use of cloud-based infrastructure, supporting greater flexibility and scalability. In contrast, decentralization would imply more distributed processing units, which is contrary to the key operational principles of Cloud RAN.