New Delhi, Aug 6 : With Jio getting 700 MHz of spectrum, BofA Securities said in an article that the company is well-placed to launch a standalone 5G.The benefit of 5G as a standalone device is that the business would be able to provide real-time low-latency applications like cutting.
It isn’t easy for competitors to offer due to the absence of spectrum (telcos are unable to offer this in 4G bands).
“While 5G as a standalone service is still behind in terms of devices, handsets and application, we believe that Jio better than its competitors to provide differentiated service.
This could allow the company attract premium customers (a tiny chink in its armor) from its rivals and increase competition in the premium segment,” the report said.
Jio was the largest spending company with $11.1 billion being followed by Bharti ($5.5 billion) as well as Vodafone Idea ($2.3 bn).The biggest surprise in the auction (vs expectations) was Jio getting 700 MHz spectrum, and also incremental bidding in specific areas in UP-East.
“With the auction over and the auction now closed, we believe the attention will shift to the rollout as well as market share growth due to the rollout of 5G.We believe that RIL the best-positioned and followed by Bharti,” BofA Securities stated.
Foreign brokerage JP Morgan said in a report that the most interest was seen in the 3300Mhz and 26Ghz bands according to expectations, however, Jio was surprised by leasing 700Mhz.With the recent acquisitions of spectrum, Jio has by far the largest portion of spectrum.
“Jio obtained 220Mhz in the 700Mhz band which was a shock.We believe the reason could be the cost of 700Mhz which was 17 percent less expensive than the 800Mhz it purchased in the auctions of last year.
It also provides more support for an earlier 5G deployment,” JP Morgan said.
This means that Jio is now the overall market share dominance.
Due to the recent acquisitions of spectrum, Jio has the highest spectrum available today across India (47 percent share) then Bharti Airtel (38 per cent) and Vodafone Idea (14 per cent).
The total annual spectrum payment for Jio will be around Rs 79 billion, while Bharti will pay Rs 39 billion for Bharti and Rs 17 billion for Vodafone Idea.
However the telcos will be able to save significantly on SUC since the additional spectrum will cost zero percent SUC cost.The weighted average SUC for telcos decreases to 0.2-0.8 percent, down from 3.5 percent in the past which results in significant savings in costs.
“We believe that there will be savings in costs of 30-40 billion annually for Bharti and Jio over the period of FY23-25 and Rs 12-15 billion for Vodafone Idea,” JP Morgan stated.
Jio announced in an announcement that it has acquired of the right to access the spectrum will allow Jio to create the most advanced network for 5G and consolidate India’s leadership in broadband wireless connectivity.
Akash Ambani who is Chairman of Reliance Jio Infocomm, said: “We have always believed that India will be a major economy in the world by embracing the power of new technologies.That was our vision and belief that led to the creation of Jio.The speed, scope, and social impact of Jio’s rollout of 4G is unparalleled in the world.In the future, with a bigger ambition and more determination, Jio is set to lead India’s transition into the 5G age.
“We will be celebrating ‘Azadi Ka Amrit Mahotsav’ with a pan India 5G rollout.Jio is committed to providing world-class, affordable 5G as well as 5G-enabled products.”
The increased network capacity will be able to meet the ever-growing demand for data on the Jio network, which is already carrying one of the largest wireless data volumes in the world.
Jio’s wide range of fibre-based services which is now complemented by a wireless home broadband will propel India to the top in broadband services for homes in the same manner that Jio helped propel India to global prominence in mobility services.
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