Time to Reindustrialize Telecom
By Tim McDonald – Synthetic Wisdom
The report Reindustrialise: Building Capacity, Security, and Prosperity in a De-globalising World, published by ARC Research and authored by Austin Bishop and Blake Seitz, aligns directly with the challenges and opportunities we've been exploring in Open RAN, cloud-based 5G, and the broader wireless infrastructure market. The push for rebuilding Western industrial capacity intersects with our work in wireless spectrum, network infrastructure, and decentralized communication models in several key ways.
1. Open RAN as an Industrial Rebuilding Strategy
One of the central themes of Reindustrialise is that industrial ecosystems do not emerge spontaneously—they require deliberate investment, policy support, and a stable, long-term vision. This applies directly to Open RAN, which is an effort to re-industrialize the telecom supply chain by breaking free from vendor lock-in (Huawei, Ericsson, Nokia) and shifting toward modular, software-driven networks.
Open RAN = Reshoring Critical Manufacturing & R&D
Instead of relying on vertically integrated, foreign-dominated vendors, Open RAN shifts toward Western-designed, software-defined networking solutions that run on general-purpose hardware.
This is analogous to how the report argues that Western economies must rebuild lower-value manufacturing to support high-value industries.
Avoiding China’s Supply Chain Dominance
Like manufacturing, Western telecom infrastructure is highly dependent on Chinese suppliers (e.g., Huawei’s dominance in 5G).
Open RAN presents an opportunity for the U.S. and allies to rebuild a domestic telecom supply chain and limit China's ability to control network infrastructure.
Cloud-Based 5G as a Model for Digital-First Industrial Strategy
Just as China’s Made in China 2025 focuses on integrating software and hardware into manufacturing, Open RAN integrates software-defined networking with commodity hardware, making networks more agile, cost-effective, and scalable.
The West can export Open RAN-based 5G infrastructure in the same way China exported low-cost telecom gear to developing markets.
2. Overregulation & Policy Barriers to Open RAN Growth
The report highlights bureaucratic and regulatory hurdles as a major driver of industrial decline, and we see similar challenges in the wireless industry:
Permitting & Spectrum Allocation Delays
Like manufacturing projects delayed by environmental reviews, spectrum auctions, site permitting, and tower deployments are slowed by outdated regulatory processes.
The U.S. must reform spectrum policy to enable faster deployment of Open RAN and cloud-based 5G networks.
Lack of Industrial Policy for Telecom
While China heavily subsidizes its telecom sector, Western governments have been slow to recognize that telecom infrastructure is not just a commercial sector—it’s a strategic industry.
The U.S. and its allies should consider public-private partnerships (similar to the CHIPS Act) for 5G and Open RAN ecosystem development.
3. Industrial Investment & Financialization in Telecom
The Reindustrialise report is critical of the way financial markets have prioritized short-term shareholder returns over long-term industrial investment. This mirrors the dynamics of the U.S. telecom industry:
Telecom Investment Has Shifted Toward Shareholder Buybacks
Major U.S. telecom players (Verizon, AT&T, T-Mobile) have prioritized stock buybacks and dividends over aggressive network expansion and infrastructure investment.
Open RAN offers a way to redirect capital toward next-generation networks by lowering barriers to entry for new market participants.
Wall Street’s Bias Toward Software-Only Models
Just as venture capital and private equity shifted away from manufacturing toward software, telecom investment has overemphasized software platforms while neglecting the hardware and network layers.
A robust Open RAN ecosystem needs long-term capital investment in radio hardware, semiconductors, and system integration—not just software.
Opportunities for a National Industrial Finance Model
The report proposes an Industrial Finance Corporation to provide patient capital for manufacturing. A similar public-private investment model could support Open RAN infrastructure (e.g., financing neutral-host networks, shared rural 5G deployments).
4. Cloud-Based 5G & the Future of Industrial Networks
The report stresses that industrial revival depends on next-generation infrastructure. Open RAN and cloud-native 5G networks are a critical foundation for the next era of Western industrial competitiveness:
Manufacturing 4.0 Needs Private 5G Networks
The shift to automated factories, robotics, and AI-driven production requires low-latency, high-reliability private 5G networks.
Without domestic 5G infrastructure, Western manufacturers remain dependent on foreign network providers, risking security and control over industrial data.
Spectrum Policy as a National Industrial Strategy
The Reindustrialise report argues that energy and infrastructure policy should be reshaped to support manufacturing.
Similarly, spectrum allocation should be aligned with industrial priorities, ensuring that private 5G networks for manufacturing, logistics, and defense get priority spectrum access.
5G Edge Computing as a Decentralized Industrial Model
The report highlights how China has used industrial clusters to scale manufacturing.
Open RAN and edge computing create “industrial clusters” in telecom, allowing regionalized, cloud-based 5G networks that support logistics, automation, and smart manufacturing hubs.
5. Geopolitical & National Security Dimensions of Open RAN
The report emphasizes that China’s manufacturing dominance is not just an economic issue—it’s a strategic threat. The same argument applies to China’s role in global telecom infrastructure:
U.S. & Allies Must Treat Telecom as a Strategic Asset
Just as China used its state-backed telecom firms to expand global influence (e.g., Belt and Road Initiative, Huawei’s global 5G deployments), the West must build its own sovereign telecom ecosystem.
Open RAN is the best available alternative to China’s centralized telecom model.
Exporting Open RAN as a Soft Power Strategy
China exports its telecom infrastructure to Africa, Latin America, and Southeast Asia, locking those regions into Chinese-controlled networks.
The U.S. and its allies should finance Open RAN deployments in developing countries, creating Western-aligned telecom ecosystems.
Defense Applications of Open RAN & 5G
Open RAN is also a critical defense technology, enabling secure, adaptable communications for military operations.
The U.S. Department of Defense has already started investing in Open RAN for tactical networks, reinforcing the argument that telecom is now a national security concern.
Final Thoughts: Open RAN as an Industrial Rebuilding Pillar
The Reindustrialise report lays out a broad argument for Western industrial recovery, but the telecom sector provides one of the most immediate and scalable opportunities to put these ideas into action. Open RAN and cloud-based 5G align perfectly with the report’s core themes:
Reshoring critical infrastructure – Open RAN reduces dependency on foreign telecom giants.
Deregulation & investment – Western governments must streamline spectrum policy & incentivize telecom infrastructure.
Industrial clusters & economic security – Open RAN supports smart factories, logistics hubs, and edge computing.
National security & geopolitical competition – Western telecom must counter China’s dominance in global 5G infrastructure.
If Western nations are serious about reindustrialization, Open RAN and cloud-based 5G should be at the top of the policy agenda. This is not just about faster internet—it’s about sovereignty, economic security, and future-proofing Western industry.