The main benefit of Cloud Radio Access Network (Cloud RAN or C-RAN) is the reduction in Total Cost of Ownership (TCO). This is achieved by decoupling the Baseband Unit (BBU) from the Remote Radio Head (RRH) and centralizing the BBU processing functions in a data center. This centralization allows for resource pooling and statistical multiplexing, leading to more efficient hardware utilization. Consequently, operators see a reduction in both Capital Expenditures (CAPEX) from fewer required BBUs and simplified cell sites, and Operational Expenditures (OPEX) through lower power consumption, cooling, and simplified site maintenance.

A. Increased cell coverage is primarily a function of the Remote Radio Head's (RRH) power and antenna configuration at the cell site, which is not directly changed by centralizing the baseband processing.

B. Better latency is not a guaranteed benefit. The long-distance fronthaul link between the RRH and the centralized BBU can introduce additional latency, which is a key challenge in C-RAN design.

D. While C-RAN enables advanced features like Coordinated Multi-Point (CoMP) that can increase throughput, this is a secondary performance benefit derived from the architecture, not its primary economic driver.

1. China Mobile Research Institute. (2011). C-RAN: The Road Towards Green RAN. White Paper, Version 2.5.

Section 2, "Key Benefits of C-RAN," page 5: The document explicitly states, "C-RAN can significantly reduce the TCO (Total Cost of Ownership) of the mobile network," detailing reductions in both CAPEX and OPEX as the primary advantages.

2. Checko, A., Christiansen, H. L., Yan, Y., Scolari, L., Kardaras, G., Berger, M. S., & Dittmann, L. (2015). Cloud-RAN for mobile networks—A technology overview. IEEE Communications Surveys & Tutorials, 17(1), 405-426. https://doi.org/10.1109/COMST.2014.2355255

Section III.A, "Reduced CAPEX and OPEX," page 408: This section details how centralization and resource pooling are key advantages of C-RAN, leading to significant cost savings. It notes, "The main motivation for deploying C-RAN is the potential for significant savings in both CAPEX and OPEX."

3. Nokia. (2021). Cloud RAN: A Guide to Deploying with Confidence. White Paper.

Page 4, "Why Cloud RAN?": The paper highlights that "Cloud RAN enables CSPs to lower their total cost of ownership (TCO) by pooling and sharing baseband processing resources from a centralized location." This is presented as a core business driver for adoption.