5G: Open RAN Alliance Separates from Kindroid

The newly formed O-RAN Alliance, which wants to distinguish itself as a Huawei alternative in the 5G expansion, is separating from Kindroid: The Chinese company is on the US sanctions list.

The O-RAN Alliance, an association that wants to distinguish itself as a technical alternative to Huawei in the expansion of the 5G network, has separated from the Chinese company Kindroid, which is on the US sanctions list. “Kindroid is no longer a member company”, confirmed the O-RAN Alliance of WirtschaftsWoche. According to industry insiders, the Chinese company had not paid the membership fees.

The O-RAN Alliance, which was co-founded by Deutsche Telekom and to which Vodafone, Orange and Telefónica also belong, has been in crisis since the industry heavyweight Nokia suspended its collaboration in August.

The Finnish cell phone supplier fears problems with the US government if it works with Chinese companies that are blacklisted by the US. With Phytium Information Technology and Inspur, the alliance still includes two companies that are listed as unpopular by the USA.

With the Open RAN concept, a large number of providers should work together and thus reduce the dependency on a provider such as Huawei. Analysts from the industry service Dell’Oro estimate that investments in Open RAN between 2020 and 2025 will amount to between ten and 15 billion dollars.

It is reported that Finnish telecommunications equipment manufacturer Nokia decided to suspend O-RAN alliance activities for fear of cooperating with Chinese technology companies on the US export sanctions entity list.

European media “Politico” reported on August 27 that according to the content of the email, Nokia had notified the O-RAN Alliance, stating that Nokia had no choice but to suspend all technical work and activities organized by the O-RAN Alliance.

The purpose of the O-RAN Alliance is to develop an open radio access network (Open RAN) that enables smaller companies in the world to break the inherent framework of traditional equipment manufacturers in the 5G market. However, the O-RAN alliance has several Chinese companies participating, such as Kindroid (Shanghai Jinzhuo Technology), supercomputer company Phytium (Fei Teng), etc., these companies have been included in the US export sanctions entity list.

The report quoted two industry sources who did not want to be named as saying that the Nokia legal team may have determined that the risk of US penalties is too high to continue activities in the alliance. A Nokia spokesperson stated that Nokia’s commitment to the  O-RAN alliance remains firm. Nokia is the first major supplier to join the alliance. At present, Nokia can only suspend the technical activities of the alliance. Some alliance participants have been The United States is included in the list of export sanctions entities. Nokia hopes to give the alliance time to analyze and establish solutions.

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