Mukesh Ambani, Sunil Mittal differ on 5G rollout timeline

Industrialists Mukesh Ambani and Sunil Mittal have differed—once again—on the timing of the rollout of 5G technology.

Ambani, who controls India’s largest telecom service provider Reliance Jio Infocomm Ltd, said his company is ready to offer fifth-generation wireless service by the second half of 2021.

But Mittal, chairperson of Bharti Airtel Ltd, said that it may take two-to-three years for the domestic telecom market to mature enough for 5G services.

Both were speaking at the fourth edition of India Mobile Congress (IMC) on Tuesday.

The timing of 5G rollout is a matter of concern for Jio’s rivals, given a history of how it has harnessed technologies and pricing to dominate the market.

In September 2016, when Jio rolled out 4G services, offering them almost for free, Airtel and Vodafone Idea Ltd were forced to cut prices, taking a hit on their customer base and revenues.

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Ambani said India requires policy developments for early rollout of 5G services and added that Reliance Jio has built an indigenous 5G solution and will lead the rollout in India.

“I assure you that Jio will pioneer the 5G revolution in India in the second half of 2021. It will be powered by an indigenously developed network, hardware and technology components. Jio’s 5G service will be a testimony to Atmanirbhar Bharat,” Ambani said.

Mittal, on the other hand, reiterated the stance of Bharti Airtel’s top management that India’s 5G ecosystem is underdeveloped and that the cost of spectrum is exorbitant.

Jio, however, plans to launch 5G as soon as the government auctions spectrum.

The department of telecommunications (DoT) has pointed towards a 4G spectrum sale in the March quarter.

But there is no clarity on when 5G airwaves will be sold.

Meanwhile, Jio continues to work in the 5G space.

In October, Jio Platforms Ltd announced that it is working with Qualcomm Inc. to develop 5G solutions and accelerate efforts to bring the high-speed network to the world’s second-largest mobile market by subscribers.

At RIL’s 43rd AGM in July, Ambani said, “Jio has developed a complete 5G solution from scratch. This will enable us to launch a world-class 5G service in India using a 100% home-grown technology and solution”.

He said Jio will be able to easily upgrade its 4G network to 5G due to the telco’s converged network infrastructure. It is not clear how Jio has developed an indigenous 5G solution and solved India’s decades-long challenge in boosting local telecom manufacturing—90% of telecom gear is currently imported.

Fitch Ratings, in its latest telecom outlook, said India’s 5G spectrum sale could be delayed if the government focuses on a 4G auction in 2021. Fitch said it expects limited participation from telcos like Bharti and Vi in the 5G auction due to high reserve prices set by the regulator and limited usage cases.