Reliance Jio has started using its own locally manufactured 5G network equipment to densify its pan-India 5G rollout—a move that could significantly reduce costs and lessen its reliance on global vendors like Ericsson.
According to sources familiar with the development, Jio is installing 5G small cell sites—miniature base stations that enhance coverage in dense urban and indoor areas—along with other radio equipment produced near Chennai. These devices are made through Reliance Industries’ (RIL) electronics joint venture with Sanmina Corp and are part of the broader 5G radio suite under Jio Platforms Ltd (JPL), which oversees RIL’s telecom and digital ventures.
The shift to in-house gear could offer major savings. One industry insider estimates that Jio could reduce costs by 50–60% if it scales up deployment of its indoor and outdoor small cells. By avoiding import duties, IP royalties, manufacturing markups, and SG&A expenses, Jio can cut the average price of a small cell site—typically around $4,000 when imported.
This cost advantage stems from RIL’s earlier move in 2022, when Reliance Strategic Business Ventures Ltd (RSBVL) partnered with Sanmina Corp to establish a major electronics manufacturing hub in India. Another RIL-backed company, Radisys, may also contribute by designing digital applications for these locally built small cell sites.
While these savings are promising, they will materialize over time. Experts note that Jio needs to deploy at least 100,000 small cell units to achieve the full benefits of local production—a target unlikely to be met quickly, given the current lack of widespread 5G use cases.
Still, the industry is trending in Jio’s favor. Unlike 4G, 5G networks rely more on small cells than on traditional macro base stations for expanding coverage. Since Jio is currently the only Indian telecom player manufacturing its own 5G gear, it stands to gain a competitive edge over Bharti Airtel, especially as costs decline with higher volumes.
According to ICICI Securities, Jio’s capital expenditure for FY25 was ₹41,600 crore, including payments to capex creditors—a figure that reflects the scale and ambition of its infrastructure plans.
