Keysight Technologies and the Acceleration of Open RAN: A Strategic Play in 5G Infrastructure Innovation

As the world hurtles toward a 5G-dominated future, the need for scalable, interoperable, and energy-efficient network infrastructure has never been more urgent. At the forefront of this transformation is Keysight Technologies (KEYS), a leader in electronic measurement and test solutions. Through its pioneering work in Open RAN (O-RAN) testing and interoperability, Keysight is not just adapting to the 5G revolution—it is actively shaping it. For investors seeking long-term value in the digital infrastructure sector, Keysight's strategic positioning in Open RAN offers a compelling case to consider.

The Open RAN Revolution: Keysight's Leadership in Testing and Interoperability

Open RAN represents a paradigm shift in telecom infrastructure, moving away from proprietary, monolithic systems to modular, interoperable components. This shift demands rigorous testing to ensure compatibility across vendors and to validate performance under real-world conditions. Keysight's Open RAN Architect (KORA) platform has become the gold standard for such testing.

During the O-RAN Alliance Spring 2025 Global PlugFest, Keysight's KORA solutions were central to 11 multi-vendor integration tests across 19 labs in Asia, Europe, and North America. These tests validated real-world deployments of Open RAN components, including RIC (RAN Intelligent Controller), O-DU (O-RAN Distributed Unit), and O-RU (O-RAN Radio Unit). By simulating diverse network scenarios, Keysight demonstrated its ability to bridge the gap between theoretical design and operational reality—a critical need as operators scale 5G networks globally.

A notable example is Keysight's collaboration with Rimedo Labs, Juniper Networks, and Deutsche Telekom to optimize energy efficiency via Cell On/Off Switching (COOS) and Traffic Steering (TS) xApps. Using Keysight's RICtest solution, the team validated power-saving techniques that could reduce energy consumption by up to 30% in high-traffic scenarios. This aligns with a broader industry trend: as 5G networks expand, energy costs are projected to become a $100 billion annual expense for operators by 2030. Keysight's focus on energy efficiency not only addresses this pain point but also positions it as a key player in the sustainability-driven 5G transition.

Energy Efficiency and Transport Reliability: Keysight's Dual Edge

Two pillars underpin Keysight's competitive advantage: energy efficiency and transport reliability.

1. Energy Efficiency:
   Keysight's work with 1Finity at Vodafone's Central ORAN Lab exemplifies its leadership. By automating energy testing of 1Finity's Triple Band O-RU, Keysight demonstrated power savings across varying traffic loads, validating the component's ability to maintain performance while reducing energy use. This is critical for operators like Vodafone, which aims to cut its carbon footprint by 50% by 2030.

In Japan, Keysight partnered with Rakuten Mobile and Quanta Cloud Technology (QCT) to test RF channel reconfiguration in a 4G end-to-end lab setup. Using real-time power measurement tools, the team achieved measurable energy savings, reinforcing Keysight's role in enabling sustainable 5G deployments.

1. Transport Reliability:
   Open RAN's reliance on xHaul transport (the backbone connecting RAN components) introduces vulnerabilities. Keysight addressed this by validating the robustness of commercial xHaul solutions at the European OTIC in Madrid. Using its AresOne 400G and Vision E400 platforms, Keysight injected controlled network impairments to simulate real-world conditions, ensuring transport reliability under stress. This capability is vital as xHaul networks face increasing congestion and complexity.

Market Dynamics and Financial Strength: A Strong Investment Case

The Open RAN market is on a trajectory to grow from $2 billion in 2024 to $11 billion by 2029, driven by operators' demand for cost-effective, interoperable solutions. Keysight's Open RAN business is expanding at a 25% CAGR, fueled by its ability to deliver repeatable, standards-compliant testing and address energy efficiency—a growing priority for regulators and investors alike.

Financially, Keysight is well-positioned. It maintains a 61.88% gross margin and a current ratio of 3.39, indicating strong liquidity and operational efficiency. Analysts, including BofA Securities, have upgraded Keysight's stock to Neutral, citing stabilized revenue and a robust order book.

Strategic Partnerships and Ecosystem Leadership

Keysight's ecosystem of partners—LITEON, Auray, QCT, and Rakuten Mobile—underscores its credibility as a trusted enabler. For instance, its collaboration with LITEON and Open Air Interface at the AERPAW OTIC validated repeatable test scenarios aligned with ETSI standards, reinforcing the reliability of the O-RAN ecosystem. Similarly, its work with Digital Catapult's SONIC Labs to evaluate Xelera's O-DU/O-CU accelerator card highlighted the importance of hardware acceleration in reducing power consumption while maintaining performance at scale.

Investment Outlook: A Long-Term Play in Digital Infrastructure

For investors, Keysight's Open RAN business represents a long-term growth engine. Its leadership in testing and interoperability, combined with a focus on energy efficiency and transport reliability, aligns with global 5G rollout timelines and sustainability goals. As operators like Deutsche Telekom, Vodafone, and Rakuten Mobile accelerate their Open RAN deployments, Keysight's role in validating these networks will become increasingly indispensable.

Moreover, Keysight's recent regulatory progress in its acquisition of Spirent Communications—a major player in network testing—signals strategic momentum. This acquisition, if finalized, could further consolidate Keysight's position in the Open RAN testing market, enhancing its revenue streams and technological capabilities.

Conclusion

Keysight Technologies is not just a participant in the 5G revolution—it is a key architect. By addressing the industry's most pressing challenges—interoperability, energy efficiency, and transport reliability—Keysight has positioned itself as a critical enabler of scalable, sustainable 5G networks. For investors with a 5–10 year horizon, Keysight's strategic leadership in Open RAN offers a compelling opportunity to capitalize on the digital infrastructure boom. As the Open RAN market expands, Keysight's ability to innovate and collaborate will likely drive both revenue growth and shareholder value.

Investment Recommendation: Buy Keysight Technologies (KEYS) for long-term exposure to the Open RAN and 5G infrastructure sectors. Monitor regulatory developments regarding the Spirent acquisition and key industry partnerships for additional catalysts.