Reliance Jio to go for next generation network architecture for 5G

Reliance Jio is planning to launch the next generation 5G standalone Option 2 architecture for its network and skip the current interim standard used by most of the networks across the globe.

The current interim architecture, known as non-standalone 5G, enables operators to leverage their existing investments in their 4G LTE networks and reduce capital costs. But while it offers higher speeds and reaches wireless mobile broadband to homes, several new and lucrative services cannot be enabled on this platform.

In standalone 5G, which Jio plans to adopt, a network has to be built with a new 5G core and new radios which work on 5G bands. In a non-standalone network, operators can continue to use the core of the 4G LTE network for 5G.

If Mukesh Ambani, chairman of Reliance Industries, keeps his recent promise of launching 5G by the second half of next year, Jio would be amongst the select club of telcos to have a live network using the latest technology. 

Currently, only China, South Korea and Singapore have networks that are standalone 5G. However, many others are now expressing their intention to go for the technology by 2021 or 2022. 

A Jio spokesperson declined to comment on the issue. The standalone 5G architecture has several advantages. Because of low latency, it can power machine-to-machine operation, enable automation and be the backbone for building smart cities.

Being more automated, standalone 5G also drives up efficiencies and reduces operating costs. Moreover, it can power autonomous vehicles and make remote robotic surgery commonplace. Unlike previous technologies like 4G, where revenues were mainly limited to customers and some from enterprise solutions, standalone 5G will open up a slew of new services to enterprise customers, including private cloud and private company networks, from which operators can make substantial revenues.

Experts say that Reliance Jio, which invested over Rs 200,000 crore to roll out its 4G network, spent over 50 per cent of the money in buying spectrum. To move to 5G standalone, however, its incremental investment in the network (how aggressively it will bid for spectrum is not known) would be far lower than what it forked out earlier. Global gear makers estimate that without spectrum costs, Jio’s investments in this regard would be around $5 to $6 billion.

This time around, Jio won’t have to invest heavily in towers or fibre infrastructure. Also, the fresh investments (for more towers and fibre) will be undertaken by the new companies floated for the purpose by spinning off the assets from Jio in an InvIT (infrastructure investment trust) structure with new partners like Brookfield (for the tower), and Abu Dhabi Investment Authority and Public Investment Fund (for fibre). This will reduce the capital investment that Jio has to make in the network.

Reliance will also see cost savings as it is building its own 5G technology. Sources say that Jio has already developed the 5G core software and will only need to buy some hardware. Besides, it has its own data centres and servers which are part of the core and are easily expandable.

Again, with the design of the core increasingly getting virtualised, or software-centric, there will be a reduction in the investment required. Jio has also designed the new radios and is mulling whether to manufacture them in-house or outsource them from local or global vendors.