Reliance Jio is the only telecommunications operator in India which has an air wave of 700 MHz posted the completion of the 2022 spectrum auction. This spectrum auction focuses on 5G air waves. Until now, telecommunications operators have missed the purchase of 700 MHz spectrum due to steep backup prices. But this time, Jio has an aggressive approach, and gets a 10 MHz Pan-India air wave in the 700 MHz ribbon. Because of this purchase, Jio’s total expenditure rose to RS 88,078 Crore. This is relatively more than what AiTel and Vodafone Idea (VI) spent during the 5G auction. If you wonder why Jio spends so much money to buy a 700 MHz spectrum, this is what you should know.
Why does Jio spend so much money to get a spectrum of 700 MHz, and how are the benefits for customers?
Jio spent money to get a spectrum of 700 MHz because of the great benefits he brought to the table for customers. Because this is a low frequency band, this will be optimized to provide better coverage. Jio will be able to provide a better cellular tissue coverage with this sub-GHZ spectrum.
What’s interesting to note here is that Jio will be a telecommunications in this country which will be able to provide 5G services in rural areas at a very low cost due to 700 MHz ribbons.
“Reliance Jio is the only telecommunications that bought a 700 MHz spectrum during the 5G auction. It places the company in a very unique position to offer 5G services using sub-GHZ ribbons, which cannot be offered by its competitors. Potential to help Jio get the customer’s market share 4% to 5%. Furthermore, Jio will be able to provide 5G in rural areas at a cost of 50% lower than other telecommunications companies because they have sub-GHz air waves, something that AIRTEL and VI will not be able to do it now, “Rohan Dhamija, Mitra Management, Mason Analysis told Telecomtalk.
The idea of Airtel and Vodafone must spend more money to establish a tower and small cells for 5G in rural areas, while Jio can do it at a very low cost because of the high scope benefits that will be offered by the 700 MHz band to telecommunications. Both Airtel and VI have used the Sub-GHZ spectrum to offer services to 2G/4G customers. They will not improve the spectrum for 5G now, which means Jio will be the only telecommunications that will be able to use the Sub-GHZ spectrum to offer 5G throughout India.
According to Dhamija, because the 700 MHz ribbon in his portfolio, Jio will be able to provide better indoor coverage services in very crowded areas/cities such as Chennai, Bangalore, Pune, etc. This will help telecommunications in getting the customer’s customer customer market share.
The 700 MHz spectrum will help Jio in providing a better 5G SA service
Jio will also be able to use a special 700 MHz spectrum in two to three years to provide 5G SA services (Mandiri). This will increase telecommunications brands in the company’s market. In accordance with Dhamija, this will contribute to an increase in market share by 5% in the market case in the use of 5G companies.
Look at the complete spectrum sheet that reflects the purchases made by Jio during the Spectrum Auctions 2022.