Jio Platforms is preparing for the next phase of telecom technology, said Managing Director Akash Mukesh Ambani on Thursday. He noted that the company intends to introduce 6G connectivity through a software upgrade instead of investing in an entirely new physical network. The announcement comes as the company prepares for its initial public offering (IPO), offering investors a glimpse into its technology strategy and future growth plans.
Speaking at the Jio Platforms IPO press conference, Ambani said the company’s existing network infrastructure and proprietary technology stack would support its transition to next-generation connectivity.
“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,” Ambani said.
The approach could help Jio leverage its existing telecom assets as it prepares for future technological developments. The company has built an extensive network across India, supported by hundreds of thousands of towers and a large fibre footprint.
Jio’s 6G Strategy: Over 3.6 Lakh Towers And 1 Million Route Km Of Fibre
Ambani said Jio’s network includes more than 360,000 towers, over 1 million route kilometres of fibre and what the company describes as the industry’s largest spectrum bank. This infrastructure, along with its proprietary core technology, forms the foundation of its plans for future connectivity.
The telecom operator, which completed 10 years on September 6, has a subscriber base of 53 crore users. According to Ambani, Jio currently carries more than 60 per cent of India’s digital data traffic.
Customers consume an average of 43.7 GB of data every month, while average download speeds are close to 200 Mbps.
“Today across 53 crore Indians, we give an average download speed of almost 200 Mbps. That’s twice as fast as the other operators. Our pricing per GB stands at the lowest anywhere else in the world at almost Rs 5, Rs 4.9 per GB, and this is on usage,” Ambani noted.
Jio Revenue Crosses Rs 1.46 Lakh Crore As EBITDA Margins Rise
Ambani also highlighted the company’s financial performance, pointing to growth in revenue and profitability over the past three years.
Jio Platforms’ revenue increased from Rs 1,09,000 crore to more than Rs 1,46,000 crore during the period, representing a compound annual growth rate of 15.8 per cent. Earnings before interest, taxes, depreciation and amortisation (EBITDA) exceeded Rs 76,000 crore, with margins reaching 53.3 per cent in the first quarter of the financial year.
“The basis of our EBITDA and our EBITDA growth has been us powering 60 per cent of India’s digital traffic. Today, Jio carries over 60 per cent of India’s data traffic,” Ambani stated, adding that 30 per cent of revenue converts directly into free cash flow.
The company is looking to build on this performance by expanding its services and finding additional ways to monetise its technology capabilities.
Four Growth Engines: Mobility, Broadband, Enterprise And Technology
Ambani identified four key areas that will drive Jio’s next phase of growth: mobile connectivity, home broadband, enterprise services and the international monetisation of its proprietary technology stack.
In the mobility business, Jio sees a potential market of 340 million users. This includes 100 million people who could become first-time mobile users and 240 million subscribers who may move away from legacy 2G networks.
The company also intends to expand its home broadband reach from 30 million to 100 million households. However, laying physical fibre can be challenging because of right-of-way permissions and other infrastructure-related hurdles.
To address this issue, Jio has developed an in-house wireless broadband solution that operates on unlicensed spectrum bands. Ambani said the offering accounts for 40 per cent of the company’s new additions.
Enterprise services and overseas partnerships are expected to provide further opportunities to grow beyond the domestic consumer market.
Jio Plans Global Push For Its Technology Stack
Jio is also looking to take its internally developed technology and intellectual property to international markets. Its engineering team has filed 7,220 patents, according to Ambani, as the company looks to expand its role beyond telecom services in India.
“What we think is the end-to-end technology stack that we’ve created, deployed, and operate gives us the ability to partner with telecom partners across the world and really do this in a CAPEX-light manner,” Ambani said.
The strategy would allow Jio to explore partnerships with telecom operators overseas without necessarily requiring the same level of capital expenditure associated with building infrastructure from scratch.
Jio Platforms IPO: Price Band, Dates And Shareholder Quota
Alongside its technology plans, Jio Platforms has announced key details of its upcoming IPO. The Reliance Industries Limited (RIL) subsidiary has fixed the price band at Rs 1,065 to Rs 1,119 per equity share.
The IPO will open for subscription on October 21 and close on October 23, while bidding for anchor investors is scheduled for October 19.
The company plans to issue up to 27 crore fresh equity shares with a face value of Rs 10 each. The offering also includes separate reservation categories for eligible Reliance Industries shareholders and employees.
According to the exchange filing, shares worth up to Rs 2,500 crore have been reserved for eligible RIL shareholders, while the employee reservation category has been set at up to Rs 500 crore.
Eligible employees bidding under the reserved portion will receive a discount of Rs 54 per equity share. The minimum application lot is 12 equity shares, with subsequent bids to be placed in multiples of 12.
