Indian telecom giant Reliance Jio Infocomm is determined to advance the monetization of its 5G services through its fixed wireless access (FWA) offering, Jio AirFiber. The company has set ambitious targets to add one million users within a month as it gears up for a potential Initial Public Offering (IPO) by the end of 2025, according to reports from The Economic Times.
Increasing the customer base for Jio AirFiber forms a critical part of the strategy aimed at driving up the company’s valuation. Research by brokerage firm CLSA suggests that by expanding its customer acquisition, Jio could further enhance its market standing ahead of the anticipated IPO. This reinforces the operator’s push in a competitive telecom market, reflecting growing data consumption trends.
To achieve this goal, Jio has streamlined its distribution network and simplified the integration process for new users. By September 2024, the company had already surpassed 2.8 million AirFiber subscribers. It is projected to increase by another 1.9 million broadband users by the end of the December quarter.
Reputed Indian billionaire, Mukesh Ambani, has initiated the IPO process for the telecommunications arm of Reliance Industries. Media outlets suggest the offering could raise between $4.08 billion and $4.66 billion. It will include new shares, an offer for sale component, and a pre-IPO placement. Jio plans to launch the IPO in the latter half of the year, potentially marking it as India’s largest-ever public offering with a valuation between $100 billion and $120 billion.
Despite Jio’s vast 5G network proliferation, the company is approaching 5G expansion cautiously due to delayed monetization and low capacity utilization. The focus now shifts towards upgrading its existing 4G users to the more lucrative 5G services. Jio has made its 5G services available nationwide, signaling a significant technological shift within the country.
During the 47th annual general meeting of Reliance Industries, Ambani proudly declared that over 85% of 5G radio cells in India are owned by Jio. “Jio has transformed India from 5G-dark to 5G-bright, creating one of the world’s most advanced 5G networks. Through unmatched spectrum holdings, 5G Standalone Architecture, and advanced technologies like Carrier Aggregation and Network Slicing, Jio is the only operator in India, and among the first globally, to fully harness 5G’s power,” he stated.
