The story of Reliance Jio’s rise to the top of India’s telecom sector cannot be told without mentioning Samsung. The South Korean electronics major built Jio’s high-speed 4G network, now used by some 500 million subscribers across India.
As India gears up for 5G telecom networks, this years-long partnership could come to an end. Over the past two years, the
love relationship
love relationship
The Ken
Alliance or trust: Samsung is preparing to live without Jio
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between the two companies has been mired in uncertainty. As Jio looks to the next generation of telecommunications networks – and capex – Samsung still hasn’t struck a deal to be its equipment supplier.
And while negotiations are still ongoing between the duo, Samsung is getting restless. According to executives close to Bharti Airtel, Samsung executives have already approached the company – Jio’s arch-rival and India’s No. 2 telecom – for a share of Airtel’s 5G investments. The two companies kept these talks secret. So much so that negotiations are led by executives from Samsung’s headquarters in Seoul, rather than its local Mumbai-based team.
What’s on the table is Samsung’s virtualized
RAN
RAN
Radio access network
A part of the mobile network that connects devices to the core of the network
– a crucial technology for the transmission of 5G signals in a cost-effective way. Samsung is already rolling out its virtualized RAN solutions for Verizon as part of a $6.6 billion deal to supply the US telecom giant with 5G equipment.
Executives close to Airtel say no deal has yet been signed between the two companies. The announcement, according to one such executive, would only come once a long-term deal is in place, and that could happen closer to the 5G auction in India. The auction, which has already been postponed several times, could take place by mid-2022. Questions sent to Airtel, Reliance and Samsung went unanswered.
The deal, if it goes ahead, would be a marked departure from Airtel’s 5G path so far. For its ongoing 5G trials, Airtel is using equipment from Swedish telecommunications giant Ericsson and Finnish telecommunications stalwart Nokia. So far, Airtel has not filed an application with the Department of Telecommunications (DoT) to use Samsung equipment in its 5G trials, multiple sources said. The Ken.
Even though it’s courting Airtel, Samsung hasn’t given up on being part of Jio’s 5G future. In an ideal scenario, it would want an exclusive partnership with Jio, as was the case with Jio’s 4G network, sources close to both companies said. Jio, however, appears determined to split its 5G equipment needs between two players, sources close to Jio and Samsung said.