With the increase in the number of user devices and applications, the 5G systems (5GS) user plane is bound to be burdened. More work towards independent scaling and optimisation of the 5GS user plane has to be done. The 4G base stations (eNB) are mainly deployed as monolithic units, whereas, in 5GS, the 3GPP 5G Next Generation base station (gNodeB) can be divided into Radio Unit (RU), Distributed Unit (DU) and Centralised Unit (CU). The CU can be divided into two logical components, the Centralised Unit-Control Plane (CU-CP) and the Centralised Unit-User Plane (CU-UP), extending Control and User Plane Separation (CUPS) approach into RAN. With the introduction of CUPS into RAN, more independence will be provided to the user plane. Moreover, using Open RAN (O-RAN), all these components can be deployed at different locations as Virtual Network Functions (VNFs). We propose a 5GS architecture in this study, which optimises the user plane. The key objectives of this thesis are twofold. Firstly, to compare the impact of co-locating the CU-UP with the DU at a distributed edge cloud location against co-locating the CU-UP with the CU-CP at a centralised regional cloud location. Secondly, with the aid of functional split design, virtualisation and O-RAN, we want to explore whether dynamically deploying the CU-UP and DU on a single physical host machine at a distributed location while centralising the CU-CP can enhance RAN development. To achieve this, we consider the 3GPP architecture as a reference and propose a new architecture and enhanced communication mechanism between CU-UP and DU. An analytical model was designed to evaluate the proposed architecture’s latency gains in the IP transport network, and a simulation model was designed to evaluate the proposed architecture’s communication latency. Furthermore, flow diagrams involving signalling of PDU session establishment are also presented. We present an analysis and overall evaluation of the proposed architecture by comparing it with the reference architecture based on practical architectural aspects and PDU session signalling diagrams. The results of the calculation model and outputs of the simulation model indicated a significant latency improvement when the new architecture is employed. The new architecture found that, on average, 1.5 ms/packet of midhaul delay was reduced. And based on the flow diagram comparisons, it was found that the new architecture introduces overhead in terms of control plane signalling.