Reliance Jio's Self-Built 5G Stack Gains Global Recognition, Valuation Boosts

Reliance Industries' telecom arm, Jio, has developed a self-built 5G stack that is gaining recognition globally and presents a monetizable opportunity. Jio's end-to-end 5G stack includes a multi-point UBR technology for home connections, which global telcos have tried to replicate but failed. The technology enables multiple home connections through a single 5G cell site, targeting 50%-60% homes within a micro-cluster using a single transmission tower, bringing down deployment costs. Jio has crossed the milestone of 20 million home connections, with 82% market share in 5G FWA connections in India.

Reliance Industries' telecom arm, Jio Platforms, reported a 25% year-on-year rise in Q1FY26 net profit to ₹7,110 crore, led by strong growth in 5G and broadband user base [1]. The company's revenue also rose 19% YoY to ₹35,032 crore, driven by subscriber additions and higher average revenue per user (ARPU). Jio's 5G subscriber base crossed 200 million, with 212 million 5G subscribers as of the end of the quarter.

Jio's end-to-end 5G stack, which includes a multi-point UBR technology for home connections, is gaining recognition globally. This technology enables multiple home connections through a single 5G cell site, targeting 50%-60% homes within a micro-cluster using a single transmission tower, thereby bringing down deployment costs. Jio has already crossed the milestone of 20 million home connections, with an 82% market share in 5G FWA connections in India [1].

The company's proprietary UBR technology, which was first deployed in India, allows for faster and more efficient home broadband services. By using unlicensed band radio (UBR) technology, Jio has accelerated the pace of monthly home connections to 1 million during the April-June quarter. The technology works like a radio station, sending internet wirelessly from a central antenna placed on a tower to multiple homes or buildings at the same time [2].

Jio's UBR technology promises good fibre-like speeds of over 1 GB per second, without disruption in service due to cable cuts. It supports very high-end multicast applications and is expected to improve service quality and reduce costs for consumers [2]. The technology is also seen as a way to save on costs for the companies, with analysts suggesting that even other operators like Bharti Airtel may implement the same in the future.

However, there are potential technical challenges, such as interference and congestion issues, once the technology scales. Experts caution that maintaining quality of services over the long term may be difficult due to these interference challenges. Jio, however, asserts that the service via UBR is highly scalable with minimal interference, and the data speeds will be stable [2].

Jio's ability to use unlicensed spectrum (UBR) should support further FWA subscriber adds with limited impact on its mobile network. Analysts at Jefferies expect Jio's mobile subscribers to reach 517 million and home broadband subscribers to reach 38 million by March 2027 [2].

References:
[1] https://economictimes.indiatimes.com/markets/stocks/earnings/jio-platforms-q1-profit-rises-25-to-rs-7110-crore-as-5g-broadband-user-base-grows/articleshow/122768599.cms
[2] https://www.livemint.com/industry/telecom/unlicensed-band-radio-jio-broadband-technology-jio-ubr-tech-jio-home-broadband-reliance-jio-internet-11753093186260.html