Ericsson Cloud RAN System 2025 Practice Exam – Master System Behavior Testing with This All-in-One Guide!

Cloud RAN is recognized for its cost-effectiveness, particularly in large-scale networks with high traffic demands due to its architecture and deployment benefits. In such scenarios, the centralized nature of Cloud RAN allows for better resource utilization, where processing is handled in a data center rather than distributed across numerous physical sites.

This centralized model enables operators to achieve economies of scale, significantly lowering operational costs through reduced hardware requirements, simplified management, and streamlined maintenance processes. In high-demand situations, scaling out resources—such as adding additional computing power in the cloud—can be done more efficiently compared to traditional RAN setups, which often require substantial investment in distributed hardware.

Additionally, Cloud RAN supports dynamic scaling to meet fluctuating user demands, allowing networks to adapt without the need for constant physical upgrades. This agility in resource allocation is particularly beneficial in environments where traffic can vary considerably, making it a strategic advantage in modern network operations.

In contrast, maintaining small-scale networks with minimal traffic typically does not leverage the strengths of Cloud RAN, as the associated costs of cloud computing and infrastructure might outweigh the benefits. Similarly, scenarios that require frequent hardware upgrades are more aligned with traditional RAN systems that rely heavily on dedicated equipment rather than a flexible cloud-based approach. Lastly,