Reliance Jio Infocomm had reached nationwide coverage with its 5G offering in September 2024
In sum – what you need to know:
In-house shift – Reliance Jio has started deploying its own 5G small cells and radio units, moving away from foreign suppliers like Ericsson and Nokia to reduce costs and increase control over its network infrastructure.
Local production – The new equipment is manufactured near Chennai through a joint venture between Reliance Industries and Sanmina Corp.
Cost advantages – By using domestically produced components, Jio aims to cut 5G deployment costs by up to 60%, driven by lower import duties, fewer licensing fees and reduced reliance on global manufacturing.
Indian telecommunications company Reliance Jio Infocomm has begun deploying its own 5G network equipment in a move toward lowering costs and gaining more control over its infrastructure, according to recent Indian press reports.
To support its expanding 5G customer base, Jio is introducing locally manufactured small cell sites and radio units. These components are produced at a facility near Chennai operated through a joint venture between Reliance Industries Limited (RIL) and Sanmina Corp.
These new components form a central part of Jio Platforms’ 5G portfolio. The small cells are tailored to improve network capacity and coverage in crowded urban areas and indoor locations, according to the reports.
Earlier, RIL’s arm, Reliance Strategic Business Ventures (RSBVL), teamed up with Sanmina Corp. to launch a high-tech electronics manufacturing center in India. The rollout of Jio’s new 5G hardware is also being supported by Radisys, a Jio Platforms-backed firm that focuses on network software and digital services.
Although Jio initially relied on global vendors like Ericsson and Nokia for the initial stages of its 5G network rollout in the country, it is now shifting to in-house solutions to reduce capital expenditure.
Analysts estimate that using its own small cells could cut costs by 50 to 60%, thanks to lower import taxes, reduced licensing fees and the elimination of overseas manufacturing markups. For comparison, an imported 5G small cell typically costs around $4,000, the reports added.
Reliance Jio Infocomm has reportedly begun preparations for an initial public offering (IPO) expected to take place later this year. Local press reports indicate the planned IPO aims to raise between $4.08 billion and $4.66 billion through a combination of share issuance, an offer for sale (OFS) and a pre-IPO placement. Reliance Jio Infocomm is targeting a launch in the second half of the year, which could potentially make it India’s largest-ever public offering. The company’s valuation is estimated to be between $100 billion and $120 billion.
In October last year, Reliance Jio Infocomm said it was taking a more measured approach to its 5G network expansion due to low capacity utilization and the delayed monetization of the technology. As a result, Jio is shifting its focus towards upgrading its existing 4G users to the more expensive 5G services, according to previous reports.
The current utilization of Jio’s 5G network stands at around 15%, according to sources familiar with Jio’s equipment suppliers. However, sources at Reliance Jio Infocomm had claimed that actual 5G usage is more than double that amount. Jio’s 5G infrastructure is supported by equipment from Nordic vendors Nokia and Ericsson.
Meanwhile, a Jio spokesperson had confirmed that the company’s future investments in the 5G field will be determined by demand.
Industry analysts anticipated that Jio’s next phase of 5G expansion will likely occur once competition from Airtel intensifies. Jio’s 5G user base currently reaches approximately 130 million, while Airtel currently has nearly 90 million 5G customers.
In September, Mukesh Ambani noted that Reliance Jio Infocomm had reached nationwide coverage with its 5G offering.
During RIL’s 47th annual general meeting, Ambani said that more than 85% of the 5G radio cells in the country are operated by Jio.
