Telstra and Ericsson (NASDAQ: ERIC) today announced the first Ericsson Cloud RAN 5G data call on Telstra’s commercial network. The landmark technology trial, which is taking place on the Gold Coast, Queensland, Australia, is the first time Ericsson’s Cloud RAN Radio Access Network (RAN) virtualization technology has been trialed in a commercial network in the southern hemisphere.

Ericsson’s Cloud RAN solution virtualizes the RAN baseband as cloud-native network functions for the CU (centralized unit) and DU (distributed unit). Virtualization of the RAN baseband will provide Telstra with increased flexibility, faster delivery of services, and more efficient network operations.

Telstra’s implementation of Ericsson’s Cloud RAN technology employs an architecture in which both the CU and DU baseband functions are centralized versus approaches that only centralize the CU and leave the DU at the base station site. By placing both the CU and DU functions at a central site such as a Telstra local exchange or data center, Telstra will achieve more efficient utilization of compute resources leading to improved cost and capacity outcomes.