Jio 5G-The Next Telecom Revolution
Updated: Jul 30
Reliance is a company that has dominated each and every market segment in which it operates.The Ambani’s, for generations have had only one motto – deploy it’s products to each and every kind of consumer. From Dhirubhai to his son Mukesh – both have innovated and changed the games in the telecom industry. From launching “cell phone for everyone” to “Smartphones for everyone” Ambanis have always been the innovators.
THE VISION OF 5G
Undoubtedly, Reliance Jio is ranked as the #1 mobile telecom operator in the country by adjusted gross revenue (AGR) and has around 387.5 million subscribers. A completely unexpected move at Reliance’s AGM, Jio announced that the company has made a complete 5G network from “scratch”.
With this, Jio has emerged as the first Indian telecom major to seek 5G trials based on self designed technology. RIL Chairperson Mukesh Ambani believes that Jio 5G will set a precedent for PM Modi’s “Aatmanirbhar Bharat” and all of its services are “MADE IN INDIA”.
Further, Akash Ambani announced that with Jio 5G, they will be looking forward to autonomous better vehicles, better healthcare facilities over the internet and more. Jio 5G services are expected to go on floors next year after the spectrum allocation by the government.
During a recent event between India Inc. Captains and US President Donald Trump, Mukesh Ambani said that Jio is the only network in the world that does not have a single Chinese component. With this the Ambanis have clearly gotten a lot of investors in their favour. The announcements helped Reliance’s stock touch skies.
ADVANTAGES TO JIO
Jio has a lot of advantages over its competitors when it comes to launching a 5G network. According to a Morgan Stanley report dated November 14, Jio has the largest fiber network among private operators. Its 11 lakh route kms is far higher than Airtel’s 2.95 lakh route kms and Vodaphone-Idea’s 1.6 lakh route kms. In addition to this, Jio is the only operator with an all IP network, which will make the transformation to 5G much easier for Jio.
Jio has joned forces with companies like Google, Facebook, Qualcomm and Intel who are deeply embedded into the mobile and internet landscape that could help Jio extend its own services.
DISADVANTAGES TO JIO
The base price of 5G spectrum is the highest in India. At TRAI’s recommended reserve price of rs. 492 crore per megahertz, operators will have to pay around 50,000 crore for a 100 megahertz pan-India spectrum. According to an article in Business Today, “Jio had reportedly asked the government to take a ‘critical look’ at the reserved 5G spectrum prices. But the government has been unyielding so far. In reply to a query in Lok Sabha last year, telecom minister Ravi Shankar Prasad has said that the government is not planning to reduce the base price for 5G spectrum.”
Another roadblock for Jio is that it has an urgent need to acquire more 4G spectrum rather than 5G spectrum. This is because some of the Reliance Communication spectrum that Jio uses is expiring in 2021. Also given that it is the largest telecom operators in the country and has the lowest spectrum, it needs to focus more on its current services. A lot of consumers have complained about the 4G services but launching of 5G is the need of an hour in this period where almost everything is in the process of digitalization.
5G network is capable of providing high networking speeds which is almost 20 times faster than 4G network. Also within 5G, we would be able to connect to a larger array of devices like refrigerators and even water taps to the internet. But if the government remains adamant on keeping the spectrum prices high then the 5G network can become expensive for the end users.
Imagine a video which will never buffer? Imagine downloading your favourite games in seconds! No excuses for people to say “Can’t hear you”, “I’m facing a network issue”. This sure is like a dream come true. As usual, the Ambanis will revolutionize the telecom industry and impact billons of lives.