Reliance Jio vs Starlink: administrative process or auction for satellite broadband services in India?

Reliance Jio has argued that India’s telecom regulator incorrectly concluded that home satellite broadband spectrum should be allocated and not auctioned, according to a letter seen by Reuters. That intensifies Jio’s face-off with Elon Musk’s Starlink.

Starlink is expected to launch broadband satellite service in India soon after receiving a Global Mobile Personal Communication by Satellite (GMPCS) license. The Telecom Ministry has granted in-principle approval, and the Home Ministry is expected to finalize the vetting process. Starlink’s initial strategy was to provide satellite broadband directly to consumers, but the company may now only offer business services in India

Starlink and global peers like Amazon’s Project Kuiper back an administrative allocation, while Ambani – Asia’s wealthiest man who runs India’s Reliance Jio – is arguing for an auction process.
The current dispute is over an interpretation of Indian law that some in the industry say paved the way for the allocation of spectrum last year as Musk wanted.
But Reliance is arguing no provisions are in place for satellite broadband services for individual or home users, industry sources said on Sunday.

India’s telecom regulator, TRAI, is holding a public consultation, but Reliance in a private Oct. 10 letter seen by Reuters asked for the process to be started afresh as the watchdog has “pre-emptively interpreted” that allocation is the way forward. “TRAI seems to have concluded, without any basis, that spectrum assignment should be administrative,” Reliance’s senior regulatory affairs official Kapoor Singh Guliani wrote in the letter to India’s telecoms minister Jyotiraditya Scindia.

TRAI has in its consultation paper indicated Indian laws mandate allocation of spectrum for such services without conducting any studies, Reliance added in its letter.
“We have requested (the) TRAI to amend the consultation paper” to ensure a level playing field, Reliance Jio said in a statement to Reuters on Sunday, adding that “it is imperative upon TRAI to also consult on the methodology of assignment” of spectrum.
A senior TRAI official said on Sunday that due process is being followed and Reliance is welcome to share feedback during the consultation period.  The recommendations of the watchdog will form the basis for the government’s decision on the matter. Elon Musk wants to launch Starlink in India, though a final decision on spectrum allocation remains a sticking point. Starlink argues that the administrative allotment of licenses is in line with a global trend. Reliance says an auction is needed for a level playing field as foreign players could offer voice and data services and compete with traditional players, Reuters has reported.

References:

https://www.reuters.com/business/media-telecom/ambanis-reliance-lobbies-india-minister-satellite-spectrum-new-face-off-with-2024-10-13/

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LightCounting & TÉRAL RESEARCH: India RAN market is buoyant with 5G rolling out at a fast pace

The India Wireless Infrastructure Report provides an update on the 5G radio access (RAN) developments in India, including geopolitics trends and technology.  The report says that The RAN market in India is buoyant with a swelling local ecosystem that boasts big international ambitions.

Reliance Jio is rolling out 5G at a fast pace, followed by Bharti Airtel. As a result,1H23 RAN sales surged 300% YoY, and kept Ericsson in the driver’s seat, followed by Nokia and Samsung. Although the rollout pace has slowed down, 2023 is looking up, looks like the peak year, and we expect RAN equipment sales to more than double compared to last year, still driven by Jio and Airtel while BSNL will contribute with its 4G deployment.

“It’s a two-horse race, the near Jio / Airtel duopoly is quickly blanketing the country with 5G while the rest are struggling and catching up with 4G.” said Stéphane Téral, Chief Analyst at LightCounting Market Research and Founder of TÉRAL RESEARCH.

Source:  LightCounting

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Major findings in this very first edition of the India Wireless Infrastructure report are:
  • 2024 is shaping up as a shift year from 5G network buildout to how to foster utilization and some midband FWA experiments.
  • Due to the looming formation of a CSP duopoly, the looming merger of MTNL into BSNL, and Vodafone Idea’s unsustainable indebtment, our long-term forecast points to a lumpy RAN market. There is no surprise that India is a tough cellular market characterized by flat subscriber growth, ultralow ARPUs and low equipment average sales pricing.
  • Open RAN is the brightest spot with a penetration of the total RAN market that will surpass 50% by 2028.
  • At the same time, a mushrooming energetic local ecosystem is rising with great international ambitions enabled by strong ties between the U.S. and India.

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About the report:
India Wireless Infrastructure report focuses on 5G developments in India, including traditional 4G and 5G RAN and open vRAN, geopolitics trends, Indian ecosystem, and technology. This report also includes cellular subscribers data by CSP, 4G and 5G BTS units and sales, a 5-year forecast for eNBs, gNBs, vCUs, vDUs, RUs, and RAN vendor market shares and analysis.  More information about the report is available at www.lightcounting.com
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LightCounting also published a September 2023 Open vRAN Market report. That report takes a deep dive into the virtualization and disaggregation of radio access networks and analyzes the various schools of thoughts ranging from basic virtualization of RAN functions (vRAN) to new open architectures such as open RAN, following the TIP initiative and the O-RAN Alliance specifications, designed to cut the dependency on proprietary RAN equipment supplied by the traditional vendors.
The vRAN segment is taken from the firm’s existing RAN size and forecasts and broken down by 2G/3G/4G versus 5G, as well as by vCU/vDU and RU for each region, and also looks at the potential for indoor DAS replacement. The report covers a wide emerging ecosystem of vendors.

References:

https://www.lightcounting.com/report/september-2023-india-wireless-infrastructure-217

https://www.lightcounting.com/report/september-2023-open-vran-market-213

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Reliance Jio to sign $1.5 billion 5G network equipment deal with Nokia (“Home grown 5G” never happened)

Whatever happened to Jio’s claim of “home grown 5G“?  Answer: It was a big bold faced lie!  Almost 3 years ago, Jio Chairman Mukesh Ambani said his company had developed its own 5G solution “from scratch.” He said at the time, “Jio plans to launch “a world-class 5G service in India…using 100% home grown technologies and solutions,” he said in a statement at the Reliance Industries annual shareholders meeting.  “Once Jio’s 5G solution is proven at India-scale, Jio Platforms would be well-positioned to be an exporter of 5G solutions to other telecom operators globally, as a complete managed service,” he added.

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Fast forward to today.  Jio, India’s largest telecoms operator, is set to sign a contract  at Nokia’s Headquarters in Helsinki, Finland, according to sources speaking to the Economic Times 

The purchase will be financed by several global banks, including HSBC, Citigroup, and JP Morgan, whose combined loans will total around $4 billion. Finnish state-owned export credit agency Finnvera is set to issue guarantees to the lenders. Representatives from the banks are likely to be present at the signing, as well as Senior Executives from Reliance Group. 

At the time, financial details of the deals were not disclosed; however, media reports have since suggested that the deal with Ericsson was worth $2.1 billion.  Now, this deal with Nokia will see the total 5G investment reach roughly $3.6 billion. 

Earlier this year, Jio’s president Mathew Oommen said the company aimed to become “the largest 5G SA (standalone) only network operator in the world in the second half of 2023”, with the company targeting nationwide coverage by the end of the year.  

In October 2022, Jio signed 5G equipment contracts with both Nokia and Ericsson.  

In related news, earlier this week, Reliance Industries announced the launch of a budget 4G phone, (costing $12), aiming to convert the 250 million 2G users in India to 4G. The company says its goal is to pass the benefits of the internet-capable mobile technology to every Indian.

References:

https://economictimes.indiatimes.com/industry/telecom/telecom-news/jio-likely-to-sign-5g-gear-deal-with-nokia-for-1-7-billion/articleshow/101527984.cms

https://totaltele.com/indias-jio-to-sign-1-5-billion-5g-equipment-deal-with-nokia/

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