Round 3 (2024) Notice of Funding Opportunity (NOFO)

The Innovation Fund aims to foster competition and innovation across the global telecommunications ecosystem, lower costs for consumers and network operators, and strengthen the 5G and successor wireless technology supply chains. The program’s objectives include unlocking opportunities for innovative companies, particularly small and medium enterprises, to compete in a market historically dominated by a few suppliers, some of which present a high security risk.

Open and interoperable wireless networks offer numerous benefits over traditional, closed networks and will lower the barriers of entry for new and emerging companies. Using open and interoperable wireless networks allows operators to procure the best solutions for their specific needs by mixing and matching network components, rather than procuring proprietary end-to-end solutions from a single supplier. Open and interoperable networks may also reduce costs for consumers and network operators by increasing competition between 5G and successor radio access network (RAN) suppliers, leading to rapid innovation and/or the potential lowering of capital expenditures and operating expenses. This increased competition will also drive innovation, leading to the development of new and improved RAN features. Ultimately, the increase in competition spurred by the shift to open networks will bolster resilience in the global telecommunications equipment market and enhance 5G and successor wireless technology supply chain security.

Pursuant to the FY21 NDAA, the Innovation Fund facilitates the adoption of open and interoperable wireless networks through the following statutory objectives:[i]

1. Promoting and deploying technology, including software, hardware, and microprocessing technology, that will enhance competitiveness in the 5G and successor wireless technology supply chains that use open and interoperable interface radio access networks (RAN).
2. Accelerating commercial deployments of open interface standards-based compatible, interoperable equipment.
3. Promoting and deploying compatibility of new 5G equipment with future open standards-based, interoperable equipment.
4. Managing integration of multi-vendor network environments.
5. Identifying objective criteria to define equipment as compliant with open standards for multi-vendor network equipment interoperability.
6. Promoting and deploying security features enhancing the integrity and availability of equipment in multi-vendor networks.
7. Promoting and deploying network function virtualization to facilitate multi-vendor interoperability and a more diverse vendor market.

The CHIPS and Science Act of 2022 provided critical appropriations for the Innovation Fund, investing $1.5 billion in the program.

The Innovation Fund’s first NOFO laid a foundation for the program by investing in testing and evaluation labs to expand access to Open RAN testing for new and emerging vendors.[ii] These activities are providing testing facilities for future NOFO awardees and fostering a robust Open RAN testing ecosystem, building confidence in the viability of Open RAN solutions and thus furthering its deployment.

The program’s second NOFO invested in the commercialization and innovation of open radio units (RUs), the key hardware component for Open RAN.[iii] Through these awards, NTIA aims to close the gap between open and traditional RUs in terms of cost, performance, and features, while promoting open RU competitiveness in later 5G and future 6G networks. Advancing the capabilities and cost-effectiveness of open RUs will help drive Mobile Network Operator (MNO) adoption of open RUs in upcoming equipment buying cycles.

Building upon these first two funding opportunities, NTIA’s third NOFO will invest in software solutions to further drive Open RAN adoption. Software design is a specific strength of U.S. innovation, and NTIA hopes that this software-centric NOFO will elicit broad interest from the tech community. Through these awards, NTIA aims to identify and validate new Open RAN- enabled revenue streams, while reducing the cost and complexity of multi-vendor integration.
These efforts will help expand market opportunities for suppliers and operators, in turn facilitating Open RAN adoption in upcoming equipment buying cycles and beyond. As such, this NOFO marks a key step in advancing the adoption of open and interoperable wireless networks in line with Innovation Fund program goals, as detailed in the FY21 NDAA.

[i] This list of statutory objectives has been abridged for clarity. The verbatim list of statutory objectives can be found at 47 U.S.C. § 906(a)(1)(C).

[ii] See NTIA, Notice of Funding Opportunity, “Research and Development, Testing and Evaluation”

[iii] See NTIA, Notice of Funding Opportunity, “Open Radio Commercialization and Innovation”