Reliance Jio eyes global expansion, emphasising India's tier 1 plus status

Reliance Jio is considering the possibility of expanding its operations globally, according to a senior company official. Speaking at the India Mobile Congress, Mathew Oommen, the President of Reliance Jio, emphasised that India has now achieved tier 1 plus status, indicating the need for policies that align with the nation's growth.

Oommen highlighted the potential for India to become a global player. He expressed the company's intent to explore options for representing India on the global stage while leveraging the technological capabilities that have been successfully implemented in India.

One key proposal made by Oommen was to utilise the Universal Services Obligation Fund (USOF), which currently stands at Rs 75,700 crore, not only for mobile tower deployment but also to ensure the affordability and accessibility of devices and services for individuals. He emphasised the importance of the Jio Bharat Phone ecosystem in enabling India to transition from 2G to AI-enabled services.

Oommen suggested that the underutilised USO fund should support not only telecom infrastructure but also provide assistance to individuals who cannot afford the necessary devices and services for digital connectivity. He advocated for providing devices and service models to those who cannot afford connectivity or monthly expenses by leveraging the fund.

Currently, the government imposes an 8% licence fee on telecom companies' revenue, with 5% of the collection allocated to USOF to promote telecom connectivity in rural and remote areas. Oommen proposed reducing the licence fee to 3 per cent and allowing the telecom industry to use the funds for further investment and expansion, particularly in transitioning users from 2G to 4G and 5G services.

Oommen emphasised the significance of devices in the adoption of digital services and urged the industry to make 5G devices more affordable to facilitate wider adoption.

He stressed the importance of bringing 240 million 2G users into the modern network fold and connecting them to contemporary services.

Regarding the sustainability of the telecom industry in light of current mobile call and data prices, Oommen argued that tariff decisions should consider India's entire population as part of the Digital India program. He cautioned against simply raising tariffs without considering the diverse needs of all citizens to ensure a "2G-mukt Bharat" (2G-free India).

Oommen also discussed satellite communication technology, highlighting its potential to complement land-based telecom networks. He advocated for a uniform spectrum allocation methodology for mobile networks and satellites, as both offer similar services to the same devices and customers. He emphasised that satellite technology can achieve gigabit speeds, similar to land-based networks, and called for a consistent approach in spectrum allocation.

(With PTI Inputs)