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Reliance to invest Rs 2 lakh crore in 5G roll-out, shares plans and opportunities for innovation

Speaking at its 45th Annual General Meeting (AGM), chairman Mukesh Ambani said, “To build pan-India True-5G network, Jio will invest Rs 2 lakh crore. The business case for 5G is so strong that we can achieve high-teens ROCE through a combination of mobility market share gains and SUC savings alone.”

August 29, 2022 / 03:51 PM IST
RIL chairman and managing director Mukesh Ambani.

RIL chairman and managing director Mukesh Ambani.

Reliance Industries Limited (RIL) on August 29 announced that it will be investing Rs 200,000 crore on rapid roll-out of 5G.

The company’s telecom arm Reliance Jio also announced the launch of Jio 5G Services.

Speaking at its 45th Annual General Meeting (AGM), chairman Mukesh Ambani said, “To build pan-India True-5G network, Jio will invest Rs 2 lakh crore. The business case for 5G is so strong that we can achieve high-teens ROCE through a combination of mobility market share gains and SUC savings alone.”

“Significant incremental returns will come through creation of new digital platforms and opportunities, including home opportunity,” Ambani added.

Catch live updates from the 45th AGM of RIL | Reliance Industries AGM 2022 LIVE

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Ambani said that 5G services will be launched across Delhi, Mumbai, Chennai and Kolkata by Diwali of 2022. “Full pan-India coverage by December of 2023,” he added.

Through 5G, the company is estimating that the current figure of 800 million connected internet devices will double to 1.5 billion in a year.

Earlier in the month, Reliance Jio bought spectrum worth Rs 88,078 crore in the 5G auctions. It acquired the 700Mhz spectrum, through which it plans to create standalone 5G architecture, reportedly has advantages like low latency 5G experience and so on.

In contrast, Bharti Airtel plans to launch on non-standalone architecture, which uses the same 4G infrastructure and building on top of it.

Standalone 5G spectrum

Jio will deploy the latest version of 5G called Stand-Alone 5G, which it claims will have absolutely zero dependency on the 4G network. With Stand-Alone 5G, Jio can deliver new and powerful services like low latency, massive machine-to-machine communication, 5G voice, Edge computing and network slicing, and metaverse, Ambani said.

Also read | Reliance AGM 2022: Big investments on cards; Jio to launch 5G soon

“Most operators in India are deploying Non-Standalone 5G, which has severe limitations, delivered over existing 4G infrastructure. It cannot deliver the breakthrough improvements in performance and capability that are truly possible with 5G,” Ambani said.

Nearly 80 percent of content consumed on Jio Fiber is video content, Stand-Alone 5G will further enhance that.

“5G will not only enhance all our current mobile experiences but also create new and first-time experiences. For example, the ultra-low latency of Jio True 5G will enable real-time applications like Cloud gaming, even on the go. And in the near future, it will also enable immersive experiences like augmented reality with JioGlass and similar devices from our partners,” said President of Reliance Industries Kiran Thomas.

JioAirFiber and private 5G

Reliance Jio Chairman Akash Ambani also announced JioAirFiber, which would be a high speed fixed broadband product deriving out of Jio’s 5G offerings.

He described it as a wireless, single-device solution, which can be used by simply turning the device on.

“The two-way interactivity enabled by JioAirFiber will create unique and highly engaging experiences for the entire family such as interactive live content, cloud gaming, immersive shopping and much more, with focus on continuously enhancing customer experience and privacy,” Akash Ambani said.

Reliance Industries’ Chairman Kiran Thomas said that using JioAirFiber, customers can also opt to use a virtual PC that will be hosted in the cloud.

Through this Thomas said money can be saved for customers.

“We have named this concept the Jio Cloud PC. No large upfront investments, no upgrades. You only pay to the extent you use the Cloud PC, resulting in a super-affordable way to bring the power of a PC, even multiple PCs, to every Indian home and business,” Thomas added.

Thomas also finds the application of Jio Cloud PC in large enterprises.

“Across Reliance, we use a lot of customers. We are now replacing most of these with Jio Cloud PCs,” he added.

While talking about the various ways in which Jio's proposed 5G will be used, Thomas said that it can be used to create private 5G networks for large enterprises.

“Factories of the future' and Industry 4.0, where reliability and performance are top-most concerns, will be powered by private 5G, working hand-in-hand with Operations and Information Technology,” Thomas said.

5G applications

Akash Ambani also sees diverse applications of 5G in technologies such as drones and so on.

“Take Agriculture: Jio 5G-connected drones can be used for spraying organic fertilisers on crops across large tracts of farmland in a timely manner, thereby improving yield and reducing cost for our farmers,” Akash Ambani said.

Thomas added that the 5G can also be used in tele-ICUs which will enable it to reach patients faster, or in providing education.

Jio will soon be launching a 5G experience centre in Mumbai, where customers can get a demo of the use cases and innovations possible and being worked upon by the company.

Also ReadMukesh Ambani: 'Jio's pan-India fibre-optic network is long enough to go around Earth over 27 times'

Disclosure: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
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Debangana Ghosh
Aihik Sur covers tech policy, drones, space tech among other beats at Moneycontrol
first published: Aug 29, 2022 03:23 pm
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