Jio Platforms bets on UBR to take low-cost broadband outside India

Jio Platforms Ltd is looking to take its unlicensed broadband radio (UBR) technology overseas after deploying it across India, giving telecom operators a wireless alternative when connecting homes with fibre is costly or difficult, people familiar with the matter said.

The move could turn technology developed for Jio’s own network into a business in its own right, giving the IPO-bound company a new revenue stream as it explores overseas partnerships to sell UBR and other network technologies to telecom operators looking for cheaper, faster ways to reach more homes.

“The significance of Jio’s UBR lies in its ability to bypass the severe infrastructure and spectrum bottlenecks that have traditionally limited broadband expansion, especially in countries like India,” said Neil Shah, vice president of Counterpoints Research. “Internationally, this could be deployed in rural markets in Africa, Southeast Asia, or Australia, provided there is a good line of sight and favourable country regulations regarding the availability of 5 GHz for commercial use at higher transmit powers for base stations.”

UBR, a wireless technology that uses unlicensed Wi-Fi frequencies to help cell towers handle more internet traffic, is emerging as an important part of Jio’s broadband strategy, alongside fibre-to-the-home and conventional 5G fixed wireless access (FWA).

“A key reason Jio leverages UBR technology for FWA is that it uses the 5GHz unlicensed frequency band and therefore avoids using expensive licensed 5G spectrum such as the C-band. This also frees up the C-band to be used for 5G enhanced mobile broadband (eMBB) services on handsets,” said Ashwinder Sethi, partner at Analysys Mason.

The company is targeting an October 21-23 window for its proposed IPO, with the anchor book likely to open on October 19 and listing on October 28, subject to market conditions, Moneycontrol reported earlier.

Jio has spent the past decade building capabilities beyond telecom as part of a broader transformation into a technology company. It is now looking to turn these capabilities into products for other markets. This includes its 5G core network technology, UBR-based fixed wireless access, software platforms that run and manage the network, AI-driven automation tools and digital services.

Jio has around 27 million home broadband customers and about 1.3 million route km of fibre, with fibre remaining the preferred option wherever it is already available. UBR is being used to fill last-mile gaps, with about 6.5 million customers already using the technology and adoption continuing to grow, the sources said.

The broader significance, according to Shiv Putcha, founder of Mandala Insights, is that Jio is not treating FWA merely as a 5G connectivity product. “It is building a more flexible access network that can combine fibre, wireless and other technologies depending on the economics and requirements of a particular market. That flexibility can help accelerate broadband adoption while reducing the cost and complexity of last-mile deployment,” Putcha said.

Jio Platforms did not respond to emailed queries seeking comment.

Faisal Kawoosa, analyst at Techarc, said last-mile connectivity remains a major impediment to India’s digitalisation despite improvements in broadband availability. “Having an indigenous solution will help reduce our dependence on global players, and we can make solutions which are custom-made for hot and humid Indian conditions,” he said.

People familiar with Jio’s strategy said the company sees the technology as more than a connectivity product. UBR can provide symmetrical speeds of around 1 Gbps and fibre-comparable quality of service, while potentially offering better uptime in locations where fibre is vulnerable to physical cuts. The technology also gives Jio an option to connect homes without waiting for last-mile fibre deployment.

The strategy is also linked to Jio’s broader push into enterprise services. The people cited above said UBR could help connect more locations, particularly small and medium businesses, where fibre may not always make economic sense. Jio is looking to combine connectivity with managed Wi-Fi, CRM, selected ERP applications and other ICT services, targeting technology spending that currently goes to system integrators and IT companies.

“The bigger story is Jio’s broader technology stack and its ability to integrate connectivity, network infrastructure, software and services rather than relying on a single access technology,” Putcha said.

“UBR is one component of that strategy, but the real advantage comes from how these technologies work together at scale. If Jio can leverage this integrated architecture to lower the cost of connecting customers and then layer enterprise, cloud, managed services and other digital offerings on top of the network, it could create a much larger technology platform beyond the traditional telecom business,” he added.

How Jio built the technology

Jio’s UBR capabilities build on its 2023 acquisition of US-based Mimosa Networks through Radisys. Mimosa had developed point-to-point and point-to-multipoint broadband products using unlicensed spectrum, including solutions for FWA and wireless backhaul. The acquisition strengthened Jio’s capabilities around unlicensed-band connectivity and gave it access to an established product and engineering portfolio in the segment.

“The acquisition of US-based Mimosa Networks and the integration of its capabilities with Jio’s indigenous technology stack allowed the company to build the ecosystem for this proprietary technology,” Sethi said.

Jio is now looking to take the technology beyond India, with the company evaluating partnerships with incumbent operators in markets including Europe, East Asia and Africa. Potential models include managed services, revenue sharing and joint ventures, the sources said.

“Jio now plans to take its proprietary UBR technology to international markets as a technology vendor and monetise it through revenue sharing or upfront equipment costs charged to telcos,” Sethi said. “The focus markets will be countries with lower fixed broadband penetration, where there is an opportunity to grow the broadband base through FWA.”

The international proposition extends beyond UBR to Jio’s 5G core, OSS/BSS software, network automation and digital services. The draft IPO papers say the company plans to deploy its proprietary technology stack in selected international markets through partnerships and managed-service arrangements, particularly where operators are upgrading networks, rolling out 5G or expanding FWA.