New Delhi, Nov 7 With global 5G penetration still low, Jio's cost-effective solutions can help it scale in the $121 billion global telecom technology market, which, in turn, can add to its growth, according to a new Jefferies report.
“We maintain our 18/21 per cent CAGR in revenues/EBITDA over FY26-28 but raise our target EV/EBITDA multiple to 15x and roll forward our EV for Jio to US$180 billion,” the global brokerage said in a note.
Jio Platforms has developed comprehensive 5G technology solutions spanning across mobility and home broadband.
According to the leading global full-service investment banking and capital markets firm, over the past two years, Jio Platforms has intensified its focus on technology investments, evident from the 13x jump in patent filings and 4x jump in patent grants.
“With an aspiration to actively shape global connectivity standards of the future, Jio has also increased its contributions toward 3GPP standards for 5G/6G by nearly 7x to 70 over the recent past. Jio is also developing AI-based solutions to optimise network operations and is working toward the accelerating adoption of Open Digital Architecture,” it mentioned.
Given global 5G penetration is low, particularly in low-income markets, Jio's 5G tech stack, which has been tested at a scale of 200m+ subscribers, offers a strong cost-effective alternative and can drive additional layer of growth for Jio.
“Growth is likely to remain strong, led by scale-up of the enterprise business and monetisation of tech stack,” said Jefferies.
The network infrastructure market is fairly concentrated, with top 5 players having 80 per cent market share.
"These firms usually offer hardware and software as a bundle. While this reduces network complexity, it is usually expensive. With 5G and advent of open architecture, software and hardware layers are being unbundled, enabling software to capture a greater share of value," according to the note.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor