Reliance Jio and Bharti Airtel are taking a cautious approach to the construction of their 5G network. With low capacity uses and monetization issues, both businesses are focusing on upgrading their 4G consumers to more expensive 5G service, which has shut down 5G infrastructure investment. According to industry sources, the current 5G network usage of Reliance Jio is around 15 percent, while Airtel’s priority remains on expanding its 4G network. Both telcos are pursuing a ‘need-based’ expansion approach rather than the aggressive statewide 5G development.
The companies have introduced 5G networks that currently serve a vast part of the Indian population, apparently more than 90 percent of the country’s network. However, this coverage is not widely adopted because of this coverage, and both telecommunications companies are watching limited monetization with new technology. For some time, both businesses have focused on transferring their existing 4G customers to 5G technology. The goal is to increase the number of consumers who pay for a more expensive 5G service, but this infection will take time. Jio’s primary 5G equipment provider Ericsson, has also stated that future investment in 5G infrastructure will depend on more network use.
Jio, which now has the largest 5G user base of two operators, is expected to speed up its growth, as only Airtel competes with competition. For some time, Jio may postpone further expenses due to surplus capacity in its 5G network. According to sources, the next round of 5G procurement orders can be postponed to several quarters until the demand increases significantly. Senior management of the IO has said that the company’s capital expenditure (CAPEX) on 5G is at its peak and is expected to fall in the coming years.
This shortage comes after completion of its state wide 5G deployment and surplus capacity in its existing network. However, Jio’s 5G-based fixed wireless access (FWA) service, Jio AirFiber, as demand grows, may require business to invest more to meet growing data demands. Jio’s strategy, for some time, focuses on exploiting its existing infrastructure, waiting to increase the demand to promote the next wave of expansion. Industry experts believe that this cautious attitude will change when more competitive pressure emerges from Airtel and other telecom operators, requiring rapid network development and increasing service offerings.
