Why does Jio spend so much money to get a spectrum of 700 MHz, and how are the benefits for customers?
Jio spent money to get a spectrum of 700 MHz because of the great benefits he brought to the table for customers. Because this is a low frequency band, this will be optimized to provide better coverage. Jio will be able to provide a better cellular tissue coverage with this sub-GHZ spectrum.
What’s interesting to note here is that Jio will be a telecommunications in this country which will be able to provide 5G services in rural areas at a very low cost due to 700 MHz ribbons.
“Reliance Jio is the only telecommunications that bought a 700 MHz spectrum during the 5G auction. It places the company in a very unique position to offer 5G services using sub-GHZ ribbons, which cannot be offered by its competitors. Potential to help Jio get the customer’s market share 4% to 5%. Furthermore, Jio will be able to provide 5G in rural areas at a cost of 50% lower than other telecommunications companies because they have sub-GHz air waves, something that AIRTEL and VI will not be able to do it now, “Rohan Dhamija, Mitra Management, Mason Analysis told Telecomtalk.
The idea of Airtel and Vodafone must spend more money to establish a tower and small cells for 5G in rural areas, while Jio can do it at a very low cost because of the high scope benefits that will be offered by the 700 MHz band to telecommunications. Both Airtel and VI have used the Sub-GHZ spectrum to offer services to 2G/4G customers. They will not improve the spectrum for 5G now, which means Jio will be the only telecommunications that will be able to use the Sub-GHZ spectrum to offer 5G throughout India.
According to Dhamija, because the 700 MHz ribbon in his portfolio, Jio will be able to provide better indoor coverage services in very crowded areas/cities such as Chennai, Bangalore, Pune, etc. This will help telecommunications in getting the customer’s customer customer market share.
The 700 MHz spectrum will help Jio in providing a better 5G SA service
Jio will also be able to use a special 700 MHz spectrum in two to three years to provide 5G SA services (Mandiri). This will increase telecommunications brands in the company’s market. In accordance with Dhamija, this will contribute to an increase in market share by 5% in the market case in the use of 5G companies.
Look at the complete spectrum sheet that reflects the purchases made by Jio during the Spectrum Auctions 2022.
