Reliance Jio, Reliance Industries Limited’s telecom business, is anticipated to turn its attention to monetizing 5G services as its 5G capital expenditure (capex) cycle nears completion. 

In India, Reliance Jio and Bharti Airtel are the two firms that provide 5G services. They encompass approximately 10,000 cities and municipalities. They want to achieve pan-India coverage by the end of the current fiscal year, or March 2024. 

India is one of the top three nations in terms of 5G installed base. It boasts one of the quickest telecom network rollouts ever. The nation presently has 3,000,000 5G sites. 

While real monetization of next-generation telecom technology is still roughly a year away, experts estimate that telcos might generate considerable additional income by charging more for 5G services via bundling and the rise of fixed wireless access (FWA) services. Because most 5G expenditures have already been made, it is expected that 50-60% of this income would be reflected in margins.

Analysts believe that telecoms would ultimately charge more for 5G offerings that bundle more services and provide higher quality. This strategy may result in monthly fees that are Rs 10-50 more than those for 4G services. FWA, which provides bundled cable and internet services, is likely to pave the path for Reliance Jio‘s 5G monetization. Jio AirFiber, which debuted in September, is already pre-loaded with pay TV and video streaming applications.

According to a Bank of America Merrill Lynch research, Jio’s FWA income possibility may be as high as $5.9 billion if the average revenue per user (ARPU) hits Rs 800 with 50 million connected homes. FWA services might generate $0.6 billion at an ARPU of Rs 400 for 10 million linked households. Jio Platforms Limited (JPL), Reliance Jio’s parent company, is presenting AirFiber as a replacement for fixed broadband, with the goal of providing a value proposition to subscribers.

Reliance Jio is also anticipated to investigate enterprise 5G prospects in addition to FWA. Rather than directly competing with current market leaders such as Bharti Airtel and Tata Communications, Jio is likely to focus on providing value-added services to larger enterprises and targeting the 50 million-strong market of small and medium-sized businesses that have yet to invest significantly in information and communication technology.

Furthermore, Reliance Jio intends to engage in government contracts and renewals, which occur every 2-3 years. While this may not immediately add to JPL’s income, it is projected to offer a more steady and long-term revenue source in the future.

Overall, as its 5G capex cycle nears completion, Reliance Jio plans to concentrate on monetizing 5G services via bundling, FWA, and targeting the business sector, while also investigating government contracts for long-term revenue growth.