Reliance Jio Slows Down 5G Expansion Amid Monetisation Issues: Report

Reliance Jio, the largest private telecom operator in India, is reportedly slowing down its 5G network expansion due to low capacity utilisation and a delayed monetisation timeline. This has led Jio to focus on upgrading its 4G customers to the more expensive next-generation service. Airtel is also focusing on enhancing its 4G network to transition its remaining feature phone users to smartphones. Both telcos are looking at a need-based strategy for their 5G expansion, as the monetisation of next-gen mobile services (5G) has yet to gain traction without compelling use cases, according to a report by ET.

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Jio’s 5G Users and Network Coverage

Jio claims on its website that its 5G user base in India now exceeds 130 million, with its 5G network covering 7,764 cities and towns.

According to the report, sources close to Jio’s vendors indicated that the telco’s 5G network utilisation is around 15 percent. However, sources close to Jio disputed this figure, stating that it is more than double that.

Finland’s Nokia and Sweden’s Ericsson are the equipment suppliers for Jio’s 5G network. “Jio’s focus is to migrate its 4G users to 5G, but this won’t happen overnight. The next round of purchase orders for 5G equipment could be several quarters away, as network utilisation needs to rise sharply,” the report quoted one of the people cited as saying.

“Further investment by Jio will be need-based,” a Jio spokesperson said, according to the report. Jio also mentioned that its 5G network already covers over 90 percent of India’s population and is significantly ahead of the competition (Bharti Airtel) in both coverage and capacity.