South Korea’s telecommunications equipment sector is setting its sights on the Open RAN market, anticipating potential benefits as the second Donald Trump administration takes office next month. Open RAN, or open radio access network, is a system that allows interoperation between cellular network equipment provided by different vendors. During the first Trump administration, the U.S. aggressively promoted Open RAN to reduce reliance on China’s Huawei, the world’s largest telecom equipment provider.
If equipment from non-Huawei vendors such as Ericsson, Nokia, and Samsung Electronics can be interoperated seamlessly, global telecom operators will no longer need to depend on Huawei’s hardware. Huawei, however, has maintained a cautious stance regarding Open RAN, citing potential performance issues when integrating its products with those of other manufacturers.
With the second Trump administration taking office next month, the U.S. is expected to double down on Open RAN initiatives,
Companies such as Solid, HFR, and Samji Electronics expect to benefit from pro-Open RAN policies, as key customers such as Ericsson and Samsung Electronics are set to secure Open RAN contracts from major U.S. telecom carriers.
Solid has partnered with the U.S. National Telecommunications and Information Administration (NTIA) this month to develop Open RAN technologies, backed by a 39.7 billion won grant, according to sources familiar with the matter on Dec. 23. The U.S. government is actively identifying and funding companies capable of addressing security concerns and enhancing competitiveness in telecom technologies. Solid plans to accelerate commercialization efforts through this partnership.
HFR has worked with ten global companies, including SK Telecom, Ericsson, and Nokia, under the O-RAN Alliance, a leading global standardization body, to test and share results for base station devices and solutions built on Open RAN specifications.
Last month, Samji Electronics obtained K-OTIC, an international certification for Open RAN equipment, from the Ministry of Science and ICT. The certification allows global telecom operators to adopt Samji Electronics’ equipment without regulatory hurdles. The company aims to boost overseas sales of its radio unit components used in Open RAN base stations.
The push into the Open RAN market comes at a crucial time for Korean telecom equipment manufacturers, who are seeking a rebound in profits. Solid reported 7.8 billion won in operating profit in the third quarter, down 1.3% from a year earlier. Samji Electronics’ operating profit dropped 36.5% to 20.5 billion won during the same period. HFR recorded an operating loss of 2.8 billion won, showing only a slight improvement from the previous year.
These financial struggles stem from a slowdown in global demand for telecom equipment following the near-completion of 5G network rollouts in key markets such as the U.S. and Japan.
