Revolutionising India’s Telecom Infrastructure with Shared RAN

In an exclusive interview, we delve into the journey of CloudExtel, a pioneering force in India’s telecom landscape, with Kunal Bajaj. From tackling the challenges of explosive mobile data growth to introducing innovative shared RAN infrastructure, Kunal shares insights on how CloudExtel is transforming the industry.

He also discusses the company's strategic expansion into smaller towns and cities, aiming to bridge the digital divide and meet the growing demand for high-speed connectivity across the nation.

Could you give us a brief overview of your journey and how CloudExtel was born?

My journey began with a focus on regulatory aspects when I was part of TRAI. From there, I moved on to consulting, where I was a Partner and Director of India at Analysis Mason, a strategy advisory firm. Over time, I realised that mobile data consumption in India was set to explode, especially after the introduction of 3G. This insight led to the formation of CloudExtel in 2014.

We anticipated that telcos would face challenges due to network congestion as data consumption grew, particularly in mobile networks. In 2014, we noticed that mobile broadband subscribers were around 100-120 million, each consuming about 100-125 MB of data per month. Fast forward to 2024, and those numbers have skyrocketed to 900 million subscribers, each consuming 22-24 GB per month. This represents a staggering 2,000x increase in total data flow over mobile networks.

CloudExtel was established to address these challenges by focusing on shared infrastructure solutions, especially in areas where self-deployment by telcos would be less feasible or economical. We saw an opportunity to provide technical expertise in parts of the network that would start facing congestion, particularly as traditional solutions like macro sites would no longer suffice.

How does neutral shared RAN infrastructure differ from traditional RAN deployments, and what are the advantages for mobile network operators?

Traditional RAN deployments typically involve each telco setting up its own infrastructure base stations, antennas, and transmission networks at a given site. This results in a lot of duplicated equipment and higher costs, particularly in dense urban environments like railway stations or airports, where space is limited.

In contrast, our neutral shared RAN infrastructure allows multiple operators to share the same network, which we manage entirely. This reduces the need for multiple sets of equipment and simplifies the deployment process, especially in areas with high traffic congestion. Our solution ensures that all operators get the same level of service, and it’s scalable to meet future demands, including upgrades to 5G.

To give you an example, in a traditional deployment, each operator would have their own base station, radios, and antennas at a site. This not only consumes space but also leads to inefficiencies. In our shared RAN model, we centralise the base stations and radios, and all operators share the same infrastructure. This approach is particularly beneficial in environments like railway stations, where space is limited, and the cost of entry is high.

Our solution has been deployed at nine stations on the Western line of the Mumbai local rail system. We’ve seen an 8x to 18x improvement in user experience during peak hours, with download speeds increasing by 800% to 1,800%. Both Airtel and Vodafone are using our shared RAN network, which shows the effectiveness of this model.

What technical challenges do you foresee in deploying such shared RAN infrastructures, particularly in high-density areas like railway stations?

Deploying shared RAN infrastructure in high-density areas comes with several technical challenges. Firstly, the integration with the core networks of multiple operators needs to be seamless to ensure that customer handovers, quality control, and data traffic management are handled efficiently. Secondly, maintaining the level of trust with the operators is crucial, as they need to be confident that our network can deliver the same, if not better, quality and security than their own infrastructure.

One of the main challenges is ensuring that the handovers between our network and the operators' core networks are smooth and that there are no drops in service. We also need to demonstrate to the operators that our solution is reliable and secure, and that we can maintain the same level of quality they expect from their own networks.

Finally, we need to provide operators with full visibility into the performance of our sites, so they can monitor and optimise the network as if it were their own. This transparency is crucial for building trust and ensuring that our network integrates seamlessly with theirs.

How does the shared RAN model offer financial benefits to mobile operators, particularly in terms of CAPEX and OPEX?

The shared RAN model provides significant financial benefits by eliminating the need for operators to invest in their own infrastructure at these sites. Over the past two years, our customers haven’t had to send a single engineer to any of the nine stations where we’ve deployed our solution. This alone results in substantial operational savings.

Additionally, all CAPEX associated with the deployment and ongoing upgrades such as adding more capacity or new frequency bands has been borne by us, not the operators. As we continue to scale this model, the cost savings and operational efficiencies for telcos will only increase.

For example, in traditional deployments, operators would need to invest in their own base stations, radios, and other equipment. In our model, they don’t need to spend on CAPEX for these components, and they also save on OPEX since they don’t need to send engineers to maintain the sites. We’ve seen that this approach not only reduces costs but also improves the efficiency and performance of the network.

CloudExtel has deployed more than 6000 small cell sites in over 470 locations. Can you elaborate on the impact of these deployments, particularly in high-traffic areas?

Our outdoor small cell sites are crucial in high-traffic areas where macro sites struggle to provide adequate coverage and capacity, by deploying small cell sites closer to the end users whether at busy railway stations, traffic junctions, or places of pilgrimage we can significantly improve data service quality.

These sites help offload traffic from surrounding macro sites, which improves the overall user experience not just in the high-traffic areas but also in the surrounding regions served by those macro sites.

For instance, at Andheri West station in Mumbai, we’ve deployed small cell sites directly outside the entry and exit points. These sites handle the high volume of traffic that would otherwise overwhelm the nearby macro sites. Similarly, at pilgrimage sites like the Golden Temple or Ayodhya, we’ve set up small cell sites to manage the constant flow of visitors, ensuring that the network can handle the data demands without compromising on quality.

Can you share some of the specific technologies implemented in CloudExtel's shared RAN solution that enhance network connectivity?

Our shared RAN solution operates on a multi-operator radio access network (MORAN). From the point of interconnecting with the core network of the host operator, traffic is securely routed through our infrastructure, ensuring complete separation between operators. We use a 10-gig ring architecture to connect our sites, with dedicated drops at each station. This setup allows us to manage and optimise the network based on real-time traffic patterns, ensuring that all operators receive the same high-quality service.

We’re currently radiating 4G in both TDD and FDD bands with MIMO architecture, and our system is fully prepared for future upgrades to 5G. The end-to-end communication from the customer device to the operator’s core network is secured to ensure that there is no cross-traffic between different operators.

In terms of technology, we’ve deployed a shared baseband unit (BBU) that handles the processing for multiple operators. The BBU connects to distributed radios across the station, which are linked to antennas that radiate the operators’ spectrum. This setup allows us to provide high-quality service even in densely populated areas like railway stations.

CloudExtel has laid 7,000 kilometres of fibre across cities. How do you plan to expand this infrastructure to meet the growing demand for high-speed connectivity in smaller towns and cities?

India is still fibre-scarce, especially in smaller towns and cities where data consumption is rapidly increasing. We see significant demand for fibre connectivity not just from mobile users but also from enterprises and households. Our strategy is to continue expanding our fibre network into these areas, supporting both 4G and 5G deployments as well as providing robust FTTH services.

As more data consumption shifts to tier 2 and tier 3 cities, we are committed to investing in the necessary infrastructure to meet this demand. For example, in cities like Lucknow, Jaipur, and Surat, we’ve seen a growing demand for FTTH services, and we’re working to meet that demand by expanding our fibre network.

We’re also focusing on areas, where data consumption is increasing rapidly. By providing fibre connectivity to towers and enterprises in these regions, we can ensure that they have access to high-speed, reliable internet services. This expansion is a key part of our strategy to support the growth of digital infrastructure across India.