Sri Lanka’s Dialog Axiata and Ericsson are pioneering advancements in cloud-native networking with the announcement of the world’s first commercial deployment of a virtual base station controller (vBSC). This development is expected to significantly enhance network performance and reduce power consumption.
Traditionally, the base transceiver station (BTS) was a dedicated hardware component that sat between the core network and multiple cell sites, managing radio resource allocation and handover. As networks have evolved to accommodate increasing volumes and varieties of traffic, the role of the BTS has become more complex.
The virtualization of the BTS offers greater flexibility and scalability in network management and control, reducing Dialog’s dependency on proprietary hardware, as it can now operate on commercial off-the-shelf servers (COTS). Being a software solution, it also minimizes space requirements and power consumption—an increasingly critical factor in network operations.
Ranga Kariyawasam, Group CTO at Dialog Axiata, stated, “As the world’s first commercial implementation of vBSC, this achievement solidifies Dialog’s position as a trailblazer in the global telecom landscape and underscores its commitment to delivering next-generation, cost-effective, and future-ready network solutions. This pioneering success reflects our dedication to technological innovation and providing exceptional value to our customers through forward-thinking network modernization.”
David Hägerbro, head of Ericsson for Malaysia, Sri Lanka, and Bangladesh, added, “Ericsson’s virtual base station controller deployment is set to transform the telecommunications industry by providing a cost-effective, efficient solution for network modernization while significantly reducing operating expenses.”
This announcement marks a significant milestone in the industry’s ongoing transition to cloud-native architecture, which also encompasses cloud-based core networks and virtualized RAN infrastructure.
According to IDC, the market for telco cloud infrastructure software, including virtual network functions (VNFs), cloud-native network functions (CNFs), and network functions virtualization infrastructure (NFVI), is projected to grow from $12.9 billion in 2022 to $27.3 billion by 2027. The research firm indicates that CNF adoption, in particular, is poised for rapid growth as the telecom sector increasingly shifts its focus to cloud-native workloads.
The ongoing adoption of cloud-native networking is also influencing edge computing, with spending anticipated to reach $228 billion this year, reflecting a 14% increase from 2023.
As Ericsson and Dialog lead the way with their commercial vBSC deployment, it is expected that other companies will soon follow suit.
