Jio Deploys Locally Made 5G Gear to Cut Costs and Boost Reach

According to a report by ETTelecom, citing sources, Reliance Jio has started rolling out its own domestically produced 5G small cell sites and radio equipment across India to enhance its nationwide 5G network. The strategic move is expected to save Jio billions of dollars while reducing its dependence on multinational vendors, including Ericsson and Nokia.

Jio Rolls Out Locally Made 5G Equipment, Eyes Major Cost Savings and Reduced Dependence on Global Vendors

These 5G small cells to enhance network capacity and coverage in urban areas and indoor locations are being made in and around Chennai. The manufacturing is under a joint venture of Reliance Industries and Sanmina Corp that was set up to address Jio’s swelling 5G user base.

The homegrown 5G equipment is part of a bigger portfolio of network solutions that have been built here under Jio Platforms Ltd (JPL), the subsidiary that manages Reliance’s telecom and digital businesses. Another insider said that Radisys, Jio’s network design JV, might also contribute by providing digital services in addition to the small home-grown cells.

One source said Jio may be able to reduce its cost by as much as 50–60% of what it currently pays by manufacturing its own indoor and outdoor small cell units. These savings would stem from avoiding import taxes, intellectual property fees, and other additional costs typically included in foreign-sourced equipment. Imported 5G small cells are sold for approximately $4,000 each, which illustrates the financial implications of local manufacturing.

The deal is an extension of a roughly three-year-old joint venture between Reliance Strategic Business Ventures Ltd (RSBVL), a wholly owned subsidiary of Reliance, and Sanmina to create an electronics manufacturing hub in India. While Jio initially used gear from Ericsson and Nokia for its first phase of 5G deployment, it is now shifting its focus to expanding with domestically made infrastructure. The report noted that this transition aligns with Jio’s current strategy of reducing capital expenditure and monetizing its next-generation mobile broadband services.

FAQs