Unlocking Private Investment in Open RAN and Spectrum Innovation
How U.S. policy can catalyze risk capital in next-generation telecom
Introduction
Open Radio Access Networks (Open RAN) and innovative spectrum technologies are emerging as pillars of America’s wireless future. By opening the traditionally closed wireless infrastructure market, these innovations aim to diversify suppliers, increase security, and drive down costs. But to realize their potential, the U.S. must attract significant risk capital to fund early-stage ventures, unproven deployments, and new market models.
Policymakers can play a decisive role by creating a climate of certainty, aligning incentives, and signaling long-term support. This article outlines how public policy can catalyze investment in Open RAN and spectrum innovation. It draws lessons from three success stories—Federated Wireless, Tarana Wireless, and EchoStar’s Boost Mobile—and offers policy recommendations to scale such outcomes.
The Role of Enabling Policy
Investors thrive on clarity. Government actions that provide market certainty—from spectrum rules to funding signals—unlock private capital by reducing risk.
The CBRS band (3.5 GHz), authorized for shared commercial use by the FCC, shows how sound regulation can open markets. Federated Wireless capitalized on this with private investment once rules became predictable and demand took shape.
The Public Wireless Supply Chain Innovation Fund, with $1.5 billion earmarked for Open RAN, sends a national signal that open networks are a strategic infrastructure priority.
The FCC’s 5G Fund for Rural America earmarked up to $900 million for Open RAN deployments—linking subsidy eligibility directly to adoption of next-gen architectures.
When these actions are paired with tax incentives, grant programs, and demand signals, the public sector doesn’t crowd out investment—it crowds it in.
Public-Private Partnerships as Catalysts
Public-private testbeds, research consortia, and pilot deployments are vital to accelerating commercial readiness. These partnerships de-risk innovation for both startups and investors.
For example, the Department of Defense selected Federated Wireless to build a private 5G “smart warehouse” at a logistics base—offering a live, mission-critical environment to validate its network platform. That validation made it easier for investors to back the company.
When governments act as early adopters, they don’t just solve their own needs—they act as a market signal.
Case Studies in Innovation and Investment
Federated Wireless – Pioneering Spectrum Sharing
Founded in 2012, Federated Wireless developed the first commercial Spectrum Access System (SAS) to coordinate CBRS spectrum use.
Raised ~$213 million
Supports 450+ customers across sectors
Powers over 145,000 connected devices
Delivered private 5G at U.S. military bases
The company is a standout example of innovation made possible by FCC-led spectrum reform, real-world testing, and policy certainty.
Tarana Wireless – Reinventing Fixed Wireless
Tarana Wireless created the G1 platform, delivering fiber-class broadband over wireless, often using unlicensed spectrum.
Raised over $400 million
Generated $100 million in first-year revenue
Partnered with 120+ ISPs
Enabled broadband in underserved and rural markets
By aligning with public broadband priorities, Tarana demonstrated how technical innovation paired with policy momentum can unlock investor confidence and scale.
EchoStar’s Boost Mobile – A Bold Bet on Open RAN at Scale
In one of the largest capital bets on Open RAN, EchoStar transformed Boost Mobile from an MVNO to a full nationwide network operator.
Secured $5.6 billion in capital (via bonds and equity)
Activated 23,000+ Open RAN cell sites
Covered over 80% of the U.S. population by end of 2024
Received FCC approval for Open RAN deployment strategy
EchoStar’s greenfield 5G buildout is a proving ground for Open RAN at scale—and a signal that risk capital can fuel structural telecom transformation when regulatory support is clear.
Comparative Snapshot: Innovation-Led U.S. Telecom Ventures
Company Founded Funding Raised Focus Scale & Impact Federated Wireless 2012 ~$213 million Spectrum sharing via CBRS (SAS platform) 145,000+ devices, 450+ customers, military and enterprise deployments Tarana Wireless 2009 ~$400+ million Fixed Wireless Access (G1), gigabit broadband in NLOS 120+ ISPs, $100M first-year revenue, extensive rural reach EchoStar (Boost) 1980 ~$5.6 billion (2024) Nationwide Open RAN 5G network 23,000+ cell sites, 80%+ U.S. coverage, FCC-approved open network strategy
Policy Recommendations
1. Ensure Long-Term Spectrum Clarity
Continue expanding shared-spectrum frameworks like CBRS. Prioritize mid-band availability with stable, investor-friendly rules.
2. Fully Fund Wireless Innovation Initiatives
Disburse the $1.5 billion Open RAN fund strategically. Offer matching grants and targeted tax incentives to draw in venture funding.
3. Use Government as a Market-Maker
Adopt Open RAN and advanced wireless solutions in federal procurement. Ensure broadband subsidies are tech-neutral, not fiber-exclusive.
4. Support Testbeds and Pilots
Expand 5G and Open RAN test environments through NTIA, DoD, or public-private coalitions. These platforms validate startups and lower the bar for deployment.
5. Reinforce Interoperability Standards
Support open testing labs and participation in O-RAN Alliance initiatives. Help vendors meet certification needs to scale deployments.
6. Maintain a Unified National Strategy
Keep FCC, NTIA, and Congress aligned in messaging. Consistent support for Open RAN and telecom diversity signals long-term opportunity to capital markets.
Conclusion
Risk capital follows confidence. Confidence follows clarity. And clarity is shaped by policy.
The success of Federated Wireless, Tarana Wireless, and EchoStar’s Boost Mobile demonstrates what is possible when innovation is matched by policy alignment and patient investment. These ventures are not isolated anomalies—they are previews of what a thriving U.S.-led telecom future could look like.
To lead in 5G, 6G, and beyond, the United States must do more than invest public dollars. It must structure the ecosystem so that private capital, domestic innovation, and public interest move in sync.
The opportunity is now.