No New Towers Needed: Jio to Deploy 6G via Software Upgrade, Says Akash Ambani
Akash Ambani reveals Jio will deploy 6G through software upgrades, avoiding new physical infrastructure. Details on IPO and growth plans inside.
In a move that could redefine the rollout of next-generation connectivity in India, Jio Platforms has announced that it plans to bring Jio 6G software upgrade capabilities to its users without the need for building massive new physical infrastructure. Managing Director Akash Ambani revealed this strategic approach during a press conference regarding the company's upcoming Initial Public Offering (IPO), emphasizing that the company's existing foundation is already primed for the leap to 6G.
A Future-Ready Foundation
According to Akash Ambani, the transition to 6G will be handled as a software update rather than a traditional, hardware-heavy infrastructure build-out. This is possible because Jio has already invested heavily in a proprietary core technology stack and a vast physical network that is ready for future transitions.
The scale of Jio's current readiness is backed by impressive numbers:
- Tower Network: Over 360,000 towers spread across the country.
- Fiber Reach: More than 1 million route kilometers of optical fiber.
- Spectrum: The largest spectrum bank currently available in the industry.
“Jio’s first mission is to democratize technology to benefit Indians. 6G is on our horizon. What this really means is that we will do 6G as a software upgrade rather than a new infrastructure build-out,” stated Akash Ambani.
Dominating India's Digital Landscape
Celebrating its 10th anniversary on September 6, Jio now boasts a massive subscriber base of 53 crore users. The company's impact on India's internet consumption is profound, currently carrying over 60 per cent of the nation's total digital data traffic.
Ambani highlighted the efficiency and speed of the network, noting that users experience an average download speed of nearly 200 Mbps—which he claimed is twice as fast as other operators. Furthermore, Jio maintains one of the most competitive pricing models globally, with usage costs sitting at approximately Rs 4.9 to Rs 5 per GB.
Financial Surge and Growth Pillars
The company's financial trajectory has seen a sharp incline. Over the last three years, revenue jumped from Rs 1,09,000 crore to over Rs 1,46,000 crore, marking a compound annual growth rate (CAGR) of 15.8 per cent. The EBITDA reached over Rs 76,000 crore, with first-quarter margins hitting 53.3 per cent. Notably, 30 per cent of the company's revenue is converted directly into free cash flow.
Looking ahead, Ambani identified four primary pillars for future growth:
- Mobility: Targeting 340 million potential users, including 100 million first-time users and 240 million migrating from 2G.
- Home Broadband: Aiming to expand coverage from 30 million to 100 million households. To solve "right-of-way" fiber hurdles, Jio uses an in-house wireless broadband solution on unlicensed bands for 40 per cent of new additions.
- Enterprise Services: Expanding B2B offerings.
- International Monetization: Taking Jio's proprietary technology stack to global markets.
With 7,220 patents filed by its engineering team, Jio intends to partner with global telecom providers in a "CAPEX-light" manner, exporting its internally developed intellectual property.
Jio Platforms IPO Details
Alongside the technological roadmap, the company detailed its upcoming IPO. Jio Platforms Limited, a subsidiary of Reliance Industries Limited (RIL), has set the price band between Rs 1,065 and Rs 1,119 per equity share.
Key IPO Dates and Figures:
- Subscription Dates: Opens October 21, closes October 23.
- Anchor Investor Bidding: Scheduled for October 19.
- Shares Offered: Up to 27 crore fresh equity shares (face value Rs 10 each).
- Reservations: Up to Rs 2,500 crore reserved for eligible RIL shareholders and up to Rs 500 crore for eligible employees.