Reliance Jio has begun deploying its own locally manufactured 5G small cell sites and radio equipment to densify its pan-India 5G network. This move is expected to yield substantial cost savings while reducing the company's reliance on global vendors such as Ericsson and Nokia, ETTelecom reported, citing sources.
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5G Network with Locally Produced Small Cells
The 5G small cells, which enhance mobile broadband coverage and capacity in dense urban areas and indoor environments, and other radio gear are being locally manufactured near Chennai by Reliance Industries' electronics joint venture with Sanmina Corp to cater to its rapidly growing base of 5G users, the report said, quoting people familiar with the matter.
Radisys and Sanmina Collaborate
The locally developed 5G gear is part of the overall suite of 5G network products under Jio Platforms Ltd (JPL), the entity overseeing Reliance's telecom and digital assets. Additionally, another source reportedly said Jio's networks design subsidiary, Radisys, may also be involved in providing digital applications for the locally developed small cell sites.
"Jio's cost savings can be substantial, almost 50-60 percent, if there is a large-scale deployment in volume terms of its own portfolio of indoor/outdoor 5G small cells for network densification as it won't have to shell out import duties, IP royalties, manufacturing margins or any related SG&A costs, which would automatically get baked into the final purchase cost if it opts for imported gear from global 5G gear suppliers," the report quoted one source as saying.
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Jio’s Shift to Local 5G Equipment
According to the report, the average price of an imported 5G small cell site is around USD 4,000, further underscoring the potential financial benefits of local manufacturing. Around three years ago, Reliance Strategic Business Ventures Ltd (RSBVL), a fully owned subsidiary of RIL, and Sanmina Corp, an integrated manufacturing solutions company, entered into a joint venture agreement to establish an electronics manufacturing hub in India.
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Jio previously deployed 5G equipment from Ericsson and Nokia for its initial wave of 5G rollouts but is now focusing on scaling up its own locally produced infrastructure. "But its switch to locally-manufactured 5G gear comes when it's cutting down on capex and looking to monetise its next-gen mobile broadband business," the report said.
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