Reliance Jio (Jio) has begun utilizing its own network products to enhance its nationwide 5G coverage, a strategy that could lead to significant cost savings and reduce its reliance on global vendors.
Jio is deploying locally manufactured 5G small cell sites and other radio equipment, produced near Chennai via a joint venture (JV) between Reliance Industries (RIL) and Sanmina Corp., in response to the growing demand from its 5G user base.
The equipment is part of Jio’s broader 5G radio technology suite under Jio Platforms Ltd. (JPL), which encompasses RIL’s telecom and digital assets. These small cells are designed to improve mobile broadband coverage and capacity in densely populated urban areas and indoors.
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Previously, RIL’s subsidiary, Reliance Strategic Business Ventures Ltd. (RSBVL), and Sanmina Corp. formed a joint venture to establish an electronics manufacturing hub in India. Additionally, Radisys, a company backed by Jio Platforms and specializing in network design, may assist with the design and development of digital applications for the locally produced 5G small cells.
While Jio initially relied on Ericsson and Nokia for its first phase of 5G deployment, the shift to locally produced equipment comes as the company focuses on reducing capital expenditures (CapEx) and monetizing its next-generation mobile broadband services. Sources estimate that Jio could save 50-60% on costs through large-scale deployment of its own 5G small cells, eliminating expenses such as import duties, intellectual property (IP) royalties, manufacturing margins, and other associated costs tied to global suppliers. The cost of an imported 5G small cell site typically averages around USD 4,000.
