Could Jio go it alone on 5G small cell manufacture?

Could Jio go it alone on 5G small cell manufacture?

Indian operator Reliance Jio has reportedly started using its own network products for planned small cell-led densification of its pan-India 5G network.

Jio is deploying 5G small cell sites and other equipment manufactured in India by an electronics joint venture involving its parent company Reliance Industries’ (RIL) and integrated manufacturing solutions company Sanmina Corp to cater to its growing base of 5G users, according to a report by the Economic Times news service.

The products are part of the overall suite of 5G radio equipment under Jio Platforms, which houses RIL’s telecom and digital properties.

While 5G small cells boost mobile broadband coverage and capacity in dense urban areas as well as indoors, a lot of them are needed to do that – tens of thousands in a country the size of India. That means that once small cells are deployed in high volumes, this move could save Jio money. The average price of an imported 5G small cell is said to be around US$4,000.

Jio Platforms-backed Radisys, a networks design company, may also be involved in designing and offering relevant digital applications for the locally developed 5G small cell sites. 

Jio deployed 5G equipment supplied by Ericsson and Nokia for its first wave of 5G rollouts. But its switch to locally manufactured 5G equipment comes when, according to the Economic Times, it is cutting down on capex and looking to monetise its next-generation mobile broadband business. Jio does not seems to have commented on this.

However, savings aren’t guaranteed, not least because, while 5G demand is growing, it may not yet be enough to justify densification on a vast scale. Still, Jio is the sole operator manufacturing 5G small cells, so in the long run it could have a cost advantage over its rivals if 5G take-up accelerates.

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