New Delhi: Reliance Jio has begun rolling out its own locally manufactured 5G small cell sites and radio equipment across India in a strategic shift aimed at trimming costs and reducing dependence on global vendors.

According to a report by ETTelecom, the new equipment is being produced at a facility near Chennai through Reliance Industries’ electronics joint venture with Sanmina Corporation. The rollout focuses on densifying Jio’s 5G network, especially in urban and indoor locations where mobile broadband demand is highest.

The small cells and radio gear are part of a larger suite of products under Jio Platforms Ltd, which oversees the company’s telecom and digital ventures. Sources cited in the report also suggested that Radisys, Jio’s network design arm, may be supporting the deployment with digital applications tailored to the new small cell infrastructure.

“Jio's cost savings can be substantial, almost 50–60 percent, if there is a large-scale deployment in volume terms of its own portfolio of indoor/outdoor 5G small cells for network densification as it won't have to shell out import duties, IP royalties, manufacturing margins or any related SG&A costs, which would automatically get baked into the final purchase cost if it opts for imported gear from global 5G gear suppliers,” a source familiar with the development told the publication.

Imported small cell sites typically cost around USD 4,000 each, making the move to in-house production a potentially significant cost-saving measure.

The decision comes three years after Reliance Strategic Business Ventures Ltd and Sanmina entered into a joint venture to build an electronics manufacturing base in India. While Jio initially used equipment from global suppliers such as Ericsson and Nokia for its 5G launch, the current focus is on scaling up its indigenous hardware as the company reduces capital expenditure and seeks to monetise its broadband services more efficiently.

BI Bureau