In a country's digital journey, it might impossible to single out a private player for ushering in a massive change. But in India's telecom story, you can decidedly earmark the calendar as pre-Jio and post-Jio era. For the Mukesh Ambani-helmed company (Reliance Jio) has had a remarkable impact in the five years of its existence.
Just consider these numbers: At the time when Reliance Jio was launched on September 5, 2016, India had over 1.02 billion mobile users. It was the 12th mobile telecom player in the market then. Cut to present, there are practically only 4 players in the fray now (Airtel, Jio, Vodafone and the State-owned BSNL), but the number of subscribers has risen to over 1.14 billion (June figure). Jio, with 36% market share, is the number one player now. It is also the largest home broadband service provider and now plans to target 100 million homes by providing fixed wireless access after the launch of its 5G service. It has also raised $20.6 billion by selling around 33% stake to 13 investors across the globe including Google and Meta.
How prepared is Jio for the 5G journey?
But all eyes are now on the much-expected 5G services, which are set to be rolled out in India in October. 5G is projected to account for nearly 40% of mobile subscriptions in India – 500 million – by the end of 2027. By the end of 2027, smartphone users in India are forecast to consume 50GB of data per month on average. Also, 5G will is likely to Indian mobile service providers to generate $17 billion in incremental revenue from enterprises by 2030.
So the question is, can Jio lead India's leap into the 5G arena.
The answer is not all that easy as a lot is dependent on the cost of 5G data services in a price-sensitive market like India's. Jio became the disruptive force because of its aggressive, market friendly prices. If Jio continues its costing in the same manner, it can pull off a similar coup of sorts.
In terms of technology and investment, Jio has already girded up its loins. It has already announced that it will launch pan-India true 5G services through standalone 5G with no fallback on 4G infrastructure. This is expected to give the full benefits of hyper speed, low latency and high capacity.
Jio has also committed Rs 2 lakh crore towards launch of pan-India 5G in phases within just 18 months. Mukesh Ambani in the company's recent AGM said Jio’s 18-month deadline for 5G rollout across every nook and corner of India will be the fastest 5G rollout in the entire world. He claimed Jio 5G will connect even those parts of the country where satellite technology was the only option.
Jio has conducted field trials of its homegrown 5G stack, and its 5G coverage planning has been completed in top 1,000 cities based on targeted customer consumption and revenue potential. Jio’s 5G stack is 100% homegrown and a comprehensive 5G solution that is fully cloud native, software defined and digitally managed. Jio has entered into a strategic partnership with Google for its Cloud Solutions to power the 5G experience of Indian enterprises as well as consumers.
On the face of it, Jio looks ready to undertake the 5G journey and blaze another new trail. But challenges remain.
