What key advantage does Cloud RAN provide for 5G networks?

Prepare for the Ericsson Cloud RAN Exam. Practice with flashcards and multiple-choice questions, each with hints and explanations. Master the topics and pass confidently!

The key advantage that Cloud RAN provides for 5G networks is enhanced capacity and reduced operational costs. This is primarily due to the virtualization of network functions and centralized management of resources that Cloud RAN enables. In a Cloud RAN architecture, baseband processing functions are performed on centralized servers rather than being distributed across individual units, which allows for more efficient utilization of resources and scaling based on demand. This centralized approach also leads to improved performance and reduced latency, as data can be processed closer to the end user.

Additionally, Cloud RAN reduces operational costs by decreasing the need for physical infrastructure and lowering maintenance expenses. It allows for more flexible resource allocation and the ability to leverage cloud computing technologies, which can lead to reduced capital expenditures and operational expenditures. This adaptability and cost efficiency make it highly advantageous for deploying and managing 5G networks, where the demand for high capacity and low operational costs is critical.

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