Reliance Jio Shifts To In-House 5G Gear To Cut Costs, Dependence On Global Vendors

Reliance Jio has reportedly started using its own network products to expand its 5G network across India. 

Through this move, Reliance reduce it costs and lessen its reliance on global suppliers like Ericsson and Nokia.

Jio is deploying 5G small cell sites and other radio equipment locally manufactured near Chennai by its parent company, Reliance Industries, in partnership with Sanmina Corp. This is part of their effort to support the growing number of 5G users.

The equipment is part of the 5G radio technology developed under Jio Platforms Ltd, which manages RIL’s telecom and digital operations. 5G small cells improve mobile broadband coverage, especially in busy urban areas and indoors.

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A few years ago, Reliance Strategic Business Ventures Ltd and Sanmina Corp partnered to create an electronics manufacturing hub in India. Another company, Radisys backed by Jio Platforms, may also help design and provide digital solutions for these locally made 5G small cells.

Jio had initially used equipment from Ericsson and Nokia for its first 5G rollouts. However, switching to locally-made gear helps it reduce costs and make the most of its 5G services.

Radisys Corp, a subsidiary of Jio Platforms that provides open-source telecom solutions and services, may also help design and provide digital applications for the locally developed 5G small cell sites, according to a source.

Sources estimate that Jio could save 50-60% on costs by using its own 5G small cells on a large scale. This would cut expenses like import duties, IP royalties, manufacturing margins and other costs linked to global suppliers. An imported 5G small cell site usually costs around USD 4,000.

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