Reliance Jio ahead of peers in Fixed Wireless Access deployment: Emkay Global

Mumbai (Maharashtra) [India], June 13 : Reliance Jio is relatively ahead of its peers in preparing for fixed wireless access (FWA) deployment because of its wider 5G coverage, availability of wider-spectrum bands including 700MHz, and improved fibre infrastructure, among others, said Emkay Global Financial Services in a report.

Stating that Reliance Jio has already committed to a USD 25 billion investment on 5G, including USD 5-6 billion for fixed wireless access (or wireless broadband), the report said it indicates a large commitment to new technology.

Reliance Jio has an edge in broadband services deployment, though the report says Airtel may catch up as it is also expanding its 5G coverage.

It is important to note that a large number of Indian households are unserved with wired broadband, thus having immense potential for fixed wireless access.

While the number of wireless broadband connections saw quick growth over 2019-21 and tapering thereafter, wireline broadband connections picked up pace from 2020-21 with the launch of JioFiber by Reliance Jio (RJio). Attractive price plans, among others, aided growth.

"We envisage that just as wireless growth tapered post reaching a certain penetration level, wireline broadband subscriber growth too may gradually wane as household penetration increases and further addition of homes through wireline becomes more difficult to attain economically, due to: i) remoteness of location; ii) high cost of laying wire; and iii) issues around the right of way (ROW)," the Emkay report said.

"This may leave a large number of households unserved by wireline broadband and open up opportunities for telcos (telecom operators) in India to provide broadband at homes, with small & medium enterprises (SMEs) using fixed wireless broadband," the report added.

The rollout of fixed wireless access using 5G services can give telecom operators access to homes that were not previously covered by wireline broadband.

Further, increasing household incomes are also a positive for FWA deployment.

70 million of the 293 million households in India are in the upper-mid income and high-income segments which are expected to increase to 200mn households by 2030, the report said citing consultant PRICE's projections. Of the upper-mid-income and high-income segments, the report said only 33 million homes are currently connected by wireline broadband, thus offering a huge opportunity for FWA in areas still unserved by fixed wireline broadband.

Fixed wireless access, or FWA, is a type of wireless technology that enables fixed broadband access using radio frequencies instead of cables.

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