Reliance Jio has been very vocal about developing indigenous 5G solutions to be leveraged for deploying its 5G networks across the country. But on Monday, Ericsson and Nokia announced that they have secured multi-year deals from Jio for 5G deployment. This means that Jio's promise of homegrown 5G will not be made true anytime soon. Even if Jio has to replace Nokia and Ericsson's gear in the future, it would involve a huge cost and something that the telco might not be willing to do at all.
Jio had been testing multiple use cases on its indigenous 5G stack. But maybe the 5G solutions from Jio were not ready enough to be deployed yet. Since Airtel was launching 5G, Jio wouldn't want to stay behind. The telco made Nokia and Ericsson its partners because both of them are experienced companies, and apart from that, Jio didn't even have many options.
Reliance Jio's Homegrown 5G Might be Available in Select Areas Only
Maybe Jio will use its 5G solutions in some circles or parts of the country at a later phase of deployment. Building an indigenous 5G stack and solutions around that isn't an easy task. Nonetheless, it is a decision from Jio in the right direction. Partnering with foreign vendors would allow Jio to quickly roll out 5G SA (standalone) and keep an edge over its competitors. While at the same time, the telco can keep working on its indigenous 5G solution and deploy it wherever possible.
Having a 100% indigenous 5G network is something that Jio might not be able to achieve anymore. The telco would be spending billions of dollars on purchasing the equipment from Nokia and Ericsson. Thus, if it comes to replacing these equipment, it would be a lot of money gone to waste if Jio does it any time soon.
Maybe, over the next decade or two, Jio could slowly phase out Nokia and Ericsson products from its networks and deploy its indigenous solutions. But it would not be feasible for Jio to do it in the near future, and it is a big 'if'.
However, there's one more thing to consider here. Once Jio is done with this indigenous 5G solution, it can potentially export it at a lower cost to other countries which need 5G SA gear. That could mean great potential for the Indian economy and the company's future.
Thus, while it was a marketing play to an extent, it was also the right way to go for Jio. Attempting to put India on the global map with homegrown 5G solutions is a solid move from Jio and something that every Indian should be proud of.
