Cloud RAN is a new mobile network architecture that separates the baseband unit (BBU) and remote radio head (RRH). This allows for centralized baseband processing in pools of BBUs located in remote data centers. There are advantages to full and partial centralization models. Cloud RAN provides benefits like lower costs, simplified deployment, increased flexibility and energy efficiency. It is well-suited for integration with software-defined networking and active antennas with beamforming. Many trials have occurred in China and normalization efforts are underway to facilitate commercialization.