With global 5G penetration still in its early stages, especially across low-income markets, Reliance Jio’s indigenously built 5G technology stack offers a cost-effective alternative that can unlock a new layer of growth for the company in the $121 billion global telecom technology market, Jefferies said in a recent note.
The brokerage, in its November 6 note, highlighted that Jio’s 5G stack, already tested at scale with over 200 million subscribers in India, could help the company tap into opportunities in global markets as operators seek affordable, open-architecture solutions.
Jio Platforms has developed an end-to-end suite of 5G technology solutions spanning both mobile and home broadband. In the mobile segment, its offerings include Open RAN 5G radios, 5G core network solutions, cloud-native operational and business support systems, and AI-driven automation platforms designed to reduce operating costs.
In the home broadband segment, Jio’s patented multi-user Air Fiber solution enables cost-efficient fixed wireless access (FWA) rollouts, while its use of Unlicensed Band Radio (UBR) technology helps scale capacity and onboard more broadband users.
According to Jefferies, global telecom technology spending—estimated at $121 billion—is divided into network infrastructure and hardware ($89 billion) and software ($32 billion). Gartner projects this spending to grow at a 4% CAGR over 2024–29, led by a 7% CAGR in software, while hardware is expected to rise at 3% annually. North America, China, and Europe account for more than 70% of the total market, while Latin America is expected to grow at a faster rate of about 5% CAGR.
The network infrastructure market remains highly concentrated, with the top five players controlling around 80% share. Traditionally, these vendors offer bundled hardware and software solutions—simplifying network management but at a higher cost. “With 5G and the advent of open architecture, software and hardware layers are being unbundled, allowing software to capture a greater share of value,” Jefferies noted. “Given global 5G penetration is low, particularly in low-income markets, Jio's 5G tech stack offers a strong cost-effective alternative and can drive an additional layer of growth for Jio.”
Over the past two years, Jio Platforms has stepped up its technology focus, marked by a 13-fold increase in patent filings and a fourfold rise in patent grants. The company has also expanded its contributions to global 3GPP standards for 5G/6G nearly sevenfold to 70 submissions, reflecting its aspiration to shape the future of global connectivity standards. Jio is simultaneously developing AI-based solutions to optimise network operations and working toward accelerating the adoption of Open Digital Architecture.
Jefferies expects Reliance Jio to deliver strong financial performance, forecasting revenue and EBITDA CAGRs of 18% and 21%, respectively, over FY26–28—driven by rising mobile tariffs and rapid growth in the home broadband business, particularly through FWA.
“Growth is likely to remain strong, led by scale-up of the enterprise business and monetisation of the tech stack. We raise our target EV/EBITDA multiple to 15x, a 10% premium to Bharti Airtel on a superior growth outlook, roll forward our valuations to December 2026, and raise our EV for Jio to $180 billion,” the brokerage said.
At Reliance Industries’ annual general meeting on August 28, Akash Ambani, Chairman of Reliance Jio Infocomm, announced that Jio plans to take its indigenously developed telecom technology stack and digital services to international markets as it evolves into a deep-tech powerhouse.
“Our innovative technologies are now ready to be deployed globally and solve global challenges. With strategic partnerships and a clear roadmap, we will take Jio Services International, creating value for partners and shareholders alike,” Ambani said.
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