Reliance Jio, India's foremost and biggest telco, has started using self-manufactured network products, including 5G small cell sites and radio equipment, to boost its 5G network across the nation. The products have been manufactured by the parent Reliance Industries (RIL) electronics joint venture with Sanmina Corp, situated near Chennai. In cases of dense urban areas, 5G small cells are the best choice.

This marks a significant stride in telcos’ aspirations of being truly local and supporting the backbone of India's economy through solid research and manufacturing efforts. These products are part of Jio Platforms Ltd.’s (JPL) comprehensive 5G radio equipment portfolio, which encompasses Reliance Industries Ltd.’s (RIL) telecom and digital assets.

Making an Electronics Hub 

Around three years ago, Reliance Strategic Business Ventures Ltd. (RSBVL), a wholly owned subsidiary of Reliance Industries Ltd. (RIL), partnered with Sanmina Corp., a leading provider of integrated manufacturing solutions, to establish an electronics manufacturing hub in India. This local manufacturing shift has been a result of long-prevailing efforts by the telco to envision a fully functional and integrated local manufacturing unit in the nation itself. 

One source said that Radisys, a network design firm backed by Jio Platforms, may also contribute to designing and delivering digital applications for the locally developed 5G small cell sites, as per the report by ET. 

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Cost- Cutting Efforts 

According to estimates, Jio’s cost savings will take time to materialize, as it needs to deploy at least 100,000 5G small cells. This rollout won't happen overnight, especially with 5G demand still limited due to the lack of compelling use cases.

Edge Over the Other Telcos 

As per the experts, 5G networks’ expansion would necessitate telcos to rely more on small cell sites rather than huge base stations. As this would push the coverage aspect across the nation. In such a scenario, Jio, being the only telecom operator manufacturing its own 5G gear, could gain a cost advantage over rival Bharti Airtel, particularly during large-scale deployments, given that equipment and component costs are highly volume-dependent.

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Overall, it is a significant and highly strategic investment approach adopted by the company to benefit it from two sides. One is network coverage among its users, and the second is a cost advantage over the other telcos operating in the country.