O-Ran operators brace for recessionary storm?
Two O-RAN operators have taken tough decisions to prepare themselves for a possible economic drought. US-based Parallel Wireless Open RAN equipment maker has been forced to cut staff in circumstances that one leaker described as ‘mass layoffs’. Meanwhile, Dublin-based O-RAN systems integrator Aspire Technology has agreed to become part of Japanese Open RAN giant NEC.
NEC to see you
NEC is to acquire Aspire which provides systems and services across the full network lifecycle from 2G legacy to 5G open systems. Financial terms were not disclosed. NEC claims it’s a global leader in Open RAN, so its NEC Open Networks presents a robust ‘ecosystem’ in a time when a looming recession and a lack of commitment to open systems from mobile operators makes it harder to guarantee revenue. NEC promises an ‘ecosystem’ of Open RAN components for disaggregated hardware and software, xHaul transport, converged core, automation and orchestration software and SI services, according to Naohisa Matsuda, General Manager of NEC’s 5G Strategy and Business.
To be you NEC
“NEC has made a strong, public commitment to Open RAN, building [up] to serve as the prime system integrator for global operators as they adopt Open Networks at their own pace,” said Matsuda, “the SI business is all about people and expertise and the deep pool of talented engineers at Aspire Technology makes us better prepared.” Aspire Technology’s founder and CEO Bill Walsh, claimed that, “the broader 5G and Open RAN marketplace is growing rapidly.”
Parallel universe
Meanwhile, a source told Light Reading that equipment inventor Parallel Wireless could lose as many as half of the employee base. “We are making adjustments to right size given the realities of global economic conditions, a Covid supply chain constraint and the pace of adoption of open RAN,” said Parallel Wireless CEO Steve Papa told Fierce Wireless. Nine months ago, the future looked much brighter at Parallel Wireless as Papa talked of doubling the company headcount by the end of 2022.
Mass layoff
Eugina Jordan, marketing director at Parallel for eight years, posted on LinkedIn that she was one of those affected by a “mass layoff” at the company. “I personally could not be prouder to have been a part of that industry disruption and innovation. I hope I have the honour of getting to work with this team again someday but, for now, it is on to new things,” Jordan wrote. Parallel Wireless has been one of the top vendors in the open Radio Access Network (RAN) movement. The company, founded in 2012, listed on LinkedIn an employee count of 685 as of last September.