In the wake of its resounding success in India, telecommunication giant Reliance Jio is diligently evaluating the prospect of a global expansion, according to a senior company executive.
Speaking at the India Mobile Congress, Reliance Jio President Mathew Oommen expounded that India has now ascended to the stature of a Tier 1 Plus country. Consequently, there is a compelling case for formulating policies that are not only germane to the nation but also substantiate India’s rightful place on the global stage.
Oommen articulated, “We firmly believe that the opportunities for India to make international forays are substantial. Reliance, in pursuit of the objective to represent India globally, will continually assess the optimal means to leverage the technological proficiencies already deployed within India to deliver value to a global clientele.”
Moreover, he underscored that in order to actualize the vision of Digital India, it is incumbent upon the government to harness the formidable Rs 75,700 crore Universal Services Obligation Fund (USOF) not only for the expansion of mobile towers but, more critically, to ameliorate the affordability and accessibility of devices and services for individuals.
Oommen avowed, “The underutilized USO fund should be channeled not solely into telecom infrastructure but also directed towards provisioning assistance in terms of devices and services to those for whom the transition remains financially prohibitive. Any individual unable to afford connectivity or monthly charges should be provided access to a device and service model, with the fund serving as the facilitator.”
Presently, the government levies an 8 percent license fee on telecom companies’ revenue, with 5 percent of the collection earmarked for the USOF. This fund is dedicated to the advancement of telecom connectivity in rural and remote regions.
Oommen proposed that the 5 percent allocation to the USOF should be revoked, and license fees should be trimmed to 3 percent. This, he opined, would serve as an enticement for the telecom industry to intensify investments, not just in connectivity, but also in the adoption of services by underserved segments, thereby transitioning to 4G and 5G technologies. He contended that it is imperative to extricate users from the antiquated 2G era.
He emphasized the pivotal role of devices in service adoption, elucidating that the introduction of affordable 4G devices had engendered an upsurge in 4G adoption. With 5G devices becoming more accessible within the Rs 10,000 price range, Oommen anticipates a further upswing in 5G adoption. However, he expressed the need for even more aggressive price reductions in this regard.
Furthermore, he underlined the significance of facilitating the migration of 240 million 2G users into modern networks, stressing that the entire industry must work in tandem to connect these users to contemporary networks.
In response to queries about the sustainability of the industry in light of existing mobile call and data prices, Oommen advocated that the industry should consider the broader implications, particularly the inclusivity of the entire Indian population under the aegis of the Digital India program while deciding on tariff adjustments. He urged a focus on tariffs that promote unity, rather than division, in the journey towards a 2G-free India.
Regarding satellite communication technology, Oommen noted that the technology had matured to a point where it could complement traditional land-based telecom networks. He called for consistency in spectrum allocation methodologies for mobile networks and satellites, arguing that the two should be treated on par since satellite services offer similar benefits and must not be disadvantaged by a divergent allocation process.
Oommen highlighted that Jio had already achieved gigabit speeds using satellite communications technology, aligning with land-based networks in terms of speed capabilities.
