Reliance Jio unlikely to charge premium for its 5G services in initial stages: Report | Techno Glob


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New Delhi: Reliance Jio, India’s largest telecom player, is unlikely to charge a premium initially for its fifth generation (5G) services, and the telecom arm of billionaire Mukesh Ambani-led conglomerate Reliance Industries (RIL) plans to provide 5G services. It will be launched in Delhi, Mumbai, Kolkata and Chennai by Diwali 2022 and in India by December 2023.

“At the initial stage, customers have to accept 5G, then they have to find the value of the service, and then you can look at monetization,” said a senior company executive. Business standard.

Currently, the number of smartphone users in the country is around 55 million, of which about 5 million have 5G phones and will be early adopters of the technology, Jio said. Considering that customers change their phones every three years, 15-20 million smartphone users may buy new smartphones every year.

According to a Jio executive, if 10 million customers upgrade to 5G smartphones every month, there will be 12 million new 5G customers every year.

Jio has focused on three key areas to create the 5G market, mobile, home (fixed wireless broadband) and small and medium business (SMB) markets, where people are looking for low-budget solutions. Jio executives estimate that there are 3.5-5 million SMB entities in India and total ICT (Information and Communication Technology) spending is around $36 billion. Out of it, the share of expenditure on telecommunication is only 10 percent. However, ICT spending is likely to double in the next few years. Also, it can increase the share of telecom in the total expenditure.

Further, a senior Jio executive noted that being an original equipment manufacturer (OEM) for mobile devices is not a priority for the company.

“We will only enter the 5G mobile device space when there are product gaps in the market or OEMs are not paying attention and we need to drive the market. So even if we do enter, it is not a priority for us,” the financial newspaper quoted the executive as saying.

In addition to awarding contracts to global telecom equipment manufacturers for 5G, Jio is actively looking at launching indigenous 5G technology in some areas.

The executive highlighted that Reliance will be the fifth company after Nokia, Ericsson, Samsung and Huawei to introduce 5G technology, including core, radios and software as well as hardware. And this does not mean that the company does not use other vendors, but it provides greater bargaining power and less dependence on others.



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