All Eyes On Airtel And Jio For Better And Faster 5G Services
News Synopsis
Reliance Jio and Airtel, two of India's top telcos, are keen to roll out their 5G services now that the 5G spectrum auctions are over. However, one telco's spectrum bids have analysts, the government, and even its competition perplexed.
Jio spent more than twice as much on its 5G spectrum bids—just over 88,000 crore—as Airtel did. Jio's total offer, however, has increased by two times due to the acquisition of 10 MHz of spectrum in the 700 MHz band by the Mukesh Ambani-led telco, which cost it over 40,000 crore.Because this band is pricey, Airtel and Vodafone Idea avoided it. Reliance Jio went all-in on 700MHz and paid nearly as much as Airtel did, for only one band. Reliance Jio's parent company Reliance Industries is resting on cash reserves and surplus of close to 4.65 lakh crore.
Notably, Jio's 5G strategy combines coverage and fast speeds because they are mutually exclusive. Imagine having access to a 5G network with slow speeds or a 5G network with fast speeds that constantly lose signal. Jio has coverage in the 700MHz band, capacity in the 3.5GHz band, and speed in the 26GHz mmWave frequency. These bands work together to provide a 5G network that is both quick and dependable. To offer 5G services, Airtel is now depending on its mid-band spectrum acquisitions. The telco has enough bandwidth in the 3.3GHz range to get going, but analysts think it may eventually need to buy spectrum in the 700MHz zone.
For the time being, Sunil Mittal may have kicked the can down the road, but he will eventually have to pick it up. When it comes to coverage, the 700MHz band is one of the finest. From tower to tower, its range can reach up to 8 to 10 kilometres. This provides better indoor coverage as well as the potential to quickly increase service in rural and remote areas of the nation.
"We think that Jio is well positioned to build out standalone (SA) 5G after obtaining 700 MHz. SA 5G has the benefit of enabling the provider to offer truly low-latency applications like slicing. Given the scarcity of spectrum (telcos cannot roll this out on 4G channels), this is tough for its competitors to offer, according to a BofA Securities study.
Notably, Jio's 5G strategy combines coverage and fast speeds because they are mutually exclusive. Imagine having access to a 5G network with slow speeds or a 5G network with fast speeds that constantly lose signal. Jio has coverage in the 700MHz band, capacity in the 3.5GHz band, and speed in the 26GHz mmWave frequency. These bands work together to provide a 5G network that is both quick and dependable. To offer 5G services, Airtel is now depending on its mid-band spectrum acquisitions. The telco has enough bandwidth in the 3.3GHz range to get going, but analysts think it may eventually need to buy spectrum in the 700MHz zone.
For the time being, Sunil Mittal may have kicked the can down the road, but he will eventually have to pick it up. When it comes to coverage, the 700MHz band is one of the finest. From tower to tower, its range can reach up to 8 to 10 kilometres. This provides better indoor coverage as well as the potential to quickly increase service in rural and remote areas of the nation.
"We think that Jio is well positioned to build out standalone (SA) 5G after obtaining 700 MHz. SA 5G has the benefit of enabling the provider to offer truly low-latency applications like slicing. Given the scarcity of spectrum (telcos cannot roll this out on 4G channels), this is tough for its competitors to offer, according to a BofA Securities study.
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