Centralize or distribute? A techno-economic study to design a low-cost cloud radio access network

Cloud radio access network (CRAN) has been proposed as a promising evolution of mobile network architecture where baseband processing functions of a base station are split/decoupled from the radio unit (RU) and centralized. However, rigid bandwidth and latency requirements are incurred by fronthaul, i.e., transport link, which connects RU to the central cloud. Therefore, new functional splits are discussed for CRAN with dual-site processing, which we call Hybrid-RAN (H-RAN), where some functions remain distributed while others are centralized. In this work, from a perspective of minimizing the total cost of ownership (TCO) for H-RAN, we present a techno-economic study to find the optimal functional splits for a base station (BS), with a given configuration. A configuration of a BS represents frequency layers, carrier bandwidths, and MIMO schemes, associated with different frequency bands. For each functional split, we present a model to calculate the requirement of computational resources and fronthaul bandwidth. We formulate a TCO minimization model using constraint programming. Numerical results show that the optimal functional split depends on BS configuration, fiber ownership, and data transmission direction. H-RAN with optimal functional split can achieve lower TCO than both classical Distributed RAN and CRAN.