Jio Explores Global Broadband Partnerships with US and South African Firms

Technology Talks

Billionaire Mukesh Ambani's Jio Platforms is holding discussions with US companies Comcast and Charter Communications to license its wireless broadband technology in exchange for potential stakes in their businesses. The talks aim to help Jio expand its proprietary broadband system internationally by selling its technology to foreign operators instead of building its own networks abroad. Jio has also spoken with South Africa's MTN Group, but those discussions broke down because the two sides could not agree on valuation and certain licensing issues, and MTN could not persuade Jio to invest at a satisfactory valuation.

Market Strategy

Jio's system runs on free, unlicensed Wi-Fi frequencies using transmitters on towers or rooftops, making it cheaper to deliver internet than traditional cable networks or mobile services. A deal with Comcast or Charter would give Jio a foothold in the United States, where cable companies are losing home broadband customers to fixed wireless and fiber. Comcast had about 28.3 million residential broadband customers at the end of September, while Charter had about 29.4 million internet customers in June. Jio recently listed in Mumbai after a record-breaking 3.2 billion dollar IPO and is targeting 10 to 15 partners globally. The international push is co-led by Dan Bailey and senior executive Mathew Oommen. Managing Director Akash Ambani stated that Jio wants to take the technology to both developed and developing markets while remaining very selective.

Context

Jio Platforms is India's biggest telecom company with over 500 million subscribers and nearly 15 million wired broadband users, with Reliance reporting over 6.5 million users on its unlicensed band radio system. Telecom spectrum is a scarce and expensive resource, making unlicensed band radio technology attractive to major operators who want to deliver cellular-quality broadband without buying expensive spectrum. Cable providers currently face heavy competition in the US market as telecom carriers push fixed wireless and fiber services to win over residential internet customers.