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If base station functionality can be allocated differently, the cost of this connection can be lower. The approach (a.k.a. midhaul) enables the use of less costly alternatives to CPRI by relaxing the tight timing and bandwidth requirements needed. This allows operators to deploy these services over their existing networks that are based on standard Ethernet connectivity.
More specifically because of this technology, operators can leverage the significant investments made in the access network by utilizing high capacity next generation fiber based passive optical network (PON) technologies to support residential, business and mobile midhaul customers.
To validate this alternative architecture, a joint project was launched by Alcatel-Lucent and South Korean telecommunications provider KT. The project’s initial phase focused on using standard PON technologies to provide mid-haul connectivity for a vRAN solution.
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http://insight.nokia.com/kt-successfully-tests-pon-vran-solution