Strategic Relevance: Why Boards and Investors Should Still Care About the RNC

In a telecom industry captivated by 5G, AI-native networks, and Open RAN, it’s easy to overlook the technology quietly running in the background. Among the most overlooked is the Radio Network Controller (RNC)—the heart of 3G architecture that still orchestrates mobile services for millions.

For engineers, the RNC is a well-understood component. For board members and investors, however, it can seem obsolete or irrelevant. That’s a mistake. The decisions surrounding RNCs—whether to maintain, virtualise, consolidate, or decommission—carry significant strategic implications.

This blog outlines the financial exposure, compliance responsibilities, brand risks, and future opportunities tied to the RNC, and why executive leadership must remain engaged in its fate.

1. RNCs Still Carry Financial Weight

Capital Assets on the Books

In many operators, RNC equipment is still:

• Fully or partially capitalised

• Depreciated over long lifecycles (10–15 years)

• Tied to vendor-specific support contracts

Premature shutdowns can trigger:

• Asset write-downs

• Impairment losses

• Licence liabilities

Conversely, extending service life without proper planning can lead to rising OPEX, operational inefficiencies, or security exposures.

Operating Costs and Maintenance

Maintaining RNCs incurs:

• Site lease and power consumption

• Dedicated engineering headcount

• Maintenance contract renewals

• Support for vendor-specific OSS platforms

Boards should track unit cost per user on the 3G layer and compare it to LTE/5G, particularly in areas with low subscriber density.

2. The RNC’s Role in Revenue Protection

While 3G no longer drives growth, it still supports:

• Inbound roaming revenues (especially from regions where 3G remains dominant)

• M2M and IoT subscriptions tied to 3G modules

• Fallback coverage in rural or indoor environments

• Emergency services access mandated by regulators

Shutting down the RNC without an alternative can create revenue leakage, regulatory penalties, and customer churn.

3. RNCs Are a Strategic Risk Surface

Legacy systems often fall outside of modern security frameworks. If left unmonitored:

• Unpatched RNCs may expose the network to cyberattack

• Misconfigured interfaces can become points of lateral movement into the core

• Outdated encryption standards may breach data protection regulations

Boards need visibility into the security posture of all infrastructure layers—not just the shiny new ones.

4. Compliance Obligations Don’t Vanish with Age

Telecom operators are subject to:

• Emergency call routing mandates

• Lawful interception readiness

• Minimum coverage requirements

• Spectrum licensing conditions

RNC-based infrastructure may be fulfilling these obligations. Decommissioning decisions must be made in coordination with regulators, not just based on engineering assessments.

In some countries, 3G shutdowns require:

• Formal notice periods

• Public disclosure

• Coexistence with other networks until 4G/5G coverage is verified

Ignoring this can risk regulatory backlash, spectrum penalties, or delayed 5G licences.

5. Network Transformation Isn’t Complete Without Legacy

Digital transformation programmes often focus on:

• Core virtualisation

• BSS/OSS re-platforming

• AI-driven network optimisation

• 5G rollouts

Yet the cost, risk, and delay associated with ignoring legacy components like the RNC can undermine these efforts. It creates:

• Fragmented operational teams

• Multiple management systems

• Incomplete visibility for NOC and SOC functions

• Staff skill imbalances

A holistic transformation strategy must include a defined roadmap for legacy RAN layers—especially where they intersect with virtualised or multi-RAT deployments.

6. Reputation, Risk, and Responsibility

Consumer trust is shaped not only by innovation but by reliability. If 3G shutdown leads to:

• Dropped calls in rural areas

• Non-functioning emergency call buttons in elevators or vehicles

• Service disruptions during roaming

• Unexplained outages for low-income customers

Then the board will be held accountable—not the network engineers.

Proactive planning, transparent communication, and mitigation strategies protect brand equity as much as infrastructure.

7. Opportunities Hidden in Legacy Infrastructure

Retiring RNCs strategically can unlock:

• Refarmed spectrum for high-value LTE or 5G services

• Operational efficiency through OSS/BSS simplification

• Energy savings aligned with ESG goals

• Data centre consolidation via RNC virtualisation

• Financial recovery through reallocation of legacy support budget

These opportunities require board-level support and cross-functional coordination to capture.

Strategic Questions for Boards and Investors

• What proportion of our customer base still touches the 3G layer?

• What are our RNC-related operating and capital costs today?

• Are we compliant with 3G-related regulatory obligations?

• How does RNC shutdown (or delay) affect our spectrum, energy, and infrastructure strategy?

• Do we have a defined, risk-managed RNC retirement roadmap?

These are not engineering questions—they are strategic governance issues.

Conclusion: The RNC Still Sits on the Boardroom Table

The Radio Network Controller may not be the most glamorous piece of telecom infrastructure, but its strategic importance persists. From cost management to risk mitigation, from customer experience to compliance, the RNC casts a long shadow across operations.

Boards and investors must not treat legacy layers as background noise. Instead, they should demand clear visibility, measurable plans, and timely decisions about how and when to phase them out—without compromising the very fundamentals that keep customers connected.

This is not about the past. It’s about future-proofing the business.