A Jio spokesperson confirmed that the company’s future investments in the 5G field will be determined by demand
Indian operator Reliance Jio Infocomm is taking a more measured approach to its 5G network expansion due to low capacity utilization and the delayed monetization of the technology, local newspaper The Economic Times reported. As a result, Jio is shifting its focus towards upgrading its existing 4G users to the more expensive 5G services, according to the report.
Rival operator Bharti Airtel is also focusing on strengthening its 4G network. Both companies are adopting a strategy of expanding their 5G operations based on demand, as the business potential of 5G services has yet to gain significant momentum due to the absence of compelling use cases, the report added.
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 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.
“The next wave of purchase orders for 5G equipment may be a few quarters away, as network utilization needs to increase substantially,” an industry source said.
Meanwhile, a Jio spokesperson confirmed that the company’s future investments in the 5G field will be determined by demand. The spokesperson also noted that Jio’s 5G network already covers over 90% of India’s population.
The report also highlighted that industry analysts anticipate 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.
Last month, Reliance Industries Limited (RIL) chairman Mukesh Ambani noted that Reliance Jio Infocomm had reached nationwide coverage with its 5G offering.
During RIL’s 47th annual general meeting, Ambani noted that more than 85% of the 5G radio cells in the country are operated by Jio.
Reliance Jio Infocomm and Chinese smartphone maker OnePlus have recently announced the successful validation of their 5G network slicing efforts at a newly established 5G innovation lab in India. The partners noted that this development represents a significant step toward enhancing the 5G experience for smartphone users across the Asian country.
Network slicing enables the division of a single physical network into multiple virtual ones, each designed to meet specific requirements. In a recent test, OnePlus and Reliance Jio infocomm showcased the capabilities of this technology on the OnePlus Nord 4 smartphone. By connecting the core network with the device’s chip module, the partners created independent virtual networks that offer different levels of speed, bandwidth, security and reliability. This ensures that various applications can access dedicated slices of the network, they added.
Reliance Jio Infocomm said it aims to commercially launch 5G network slicing technology in India in the coming months. The two companies said they remain committed to fostering innovation in this field and collaborating with global stakeholders to drive the widespread adoption of 5G network slicing in India.
