Reliance Jio Witnesses Rural Demand Surge for 5G FWA, Eyes Revenue Boost from Managed Services

According to a senior executive at Reliance Jio, there is a growing demand for their 5G fixed wireless service, JioAirFiber, particularly from tier-3, tier-4, and rural markets. Simultaneously, the telecom operator is venturing into the managed services segment, anticipating additional contributions to its service revenues.

All About Reliance Jio 5G Demand Surge

Kiran Thomas, President of Reliance Jio Infocomm, shared insights during Reliance Industries Limited’s Q3FY24 post-earnings call, stating that the launch of JioAirFiber has unlocked demand in tier-3, tier-4 towns, and rural markets, where this service is considered unique. Jio is strategically bundling a diverse range of content to incentivize adoption, especially in markets where consumer awareness of such services may be limited. Thomas highlighted that JioAirFiber when compared to the JioFiber wired broadband service on a like-to-like basis, exhibits a per capita usage that is “nearly 30 times more than our optical fiber service,” primarily attributed to the bundled content.

Thomas expressed enthusiasm about the increasing adoption and habit formation, especially as Jio accelerates the rollout of AirFiber nationwide. Jio and Bharti Airtel initially launched their 5G Fixed Wireless Access (FWA) services in select metro cities and gradually expanded coverage. JioAirFiber plans, priced at ₹599, ₹899, and ₹1,199, offer access to 14 over-the-top (OTT) content applications, including popular platforms like Netflix, Amazon Prime, and JioCinema Premium.

Furthermore, Thomas announced that Jio has completed its nationwide 5G rollout, with 90 million customers migrating to its fifth-generation mobile network. He emphasized that Jio’s 5G availability on a pan-India basis is “nearly three times” that of its nearest competitor, and the overall download speeds are “nearly two times” faster. Despite a 3% de-growth in the rest of the competition, Jio has shown a remarkable 7.5% increase in its subscriber base, showcasing the success of its 5G service.

Thomas also revealed Jio’s plans to support private 5G for enterprises, enabling them to set up their 5G networks on their campuses with a homegrown 5G core. Additionally, Jio is entering the managed services segment, offering advisory, implementation, and ongoing management of digital services to customers, spanning enterprises and small to medium businesses. This strategic move is expected to contribute significantly to Jio’s future service revenues, as the network story unfolds positively in mobility, home, and enterprise segments. On a like-to-like basis, Jio has witnessed a 1.3 times increase in revenues over the past year, with a substantial 30% growth from its top 100 accounts.