Reliance Jio is going in-house to reduce 5G cost, what this means for two of the Europe's biggest telecom equipment companies

Reliance Jio is ramping up its 5G network densification across India by deploying its own domestically manufactured network products, a strategic move that could slash costs and reduce reliance on global vendors like Ericsson and Nokia, according to the Economic Times. Ericsson and are two of the biggest telecom gear companies of Europe. India has become one of the biggest markets for Nokia and Ericsson ever since there has been an implicit ban on China's Huawei and Nokia due to Indian government's Trusted Source regulation for telecom companies. In 2021, the Department of Telecommunications amended the Unified Access Service License to prevent telecom companies from obtaining gear from untrustworthy vendors. The government launched a 'trusted telecom' portal as a part of the national security directive on the telecommunications sector.
Reliance Jio is utilizing 5G small cells and other radio equipment produced near Chennai by a joint venture between its parent company, Reliance Industries Ltd (RIL), and Sanmina Corp, sources told the Economic Times. These miniature base stations are designed to enhance mobile broadband coverage and capacity in dense urban areas and indoor settings, catering to Jio’s growing 5G user base.

“Jio’s cost savings can be substantial, almost 50-60%, if there is a large-scale deployment in volume terms of its own portfolio of indoor/outdoor 5G small cells,” a source cited by the report said. Unlike imported gear, which incurs import duties, IP royalties, and manufacturing margins, Jio’s locally-made equipment avoids these costs. The average price of an imported 5G small cell is around $4,000, the report noted.
Jio’s earlier 5G rollouts relied on equipment from Ericsson and Nokia, but its pivot to local manufacturing marks a significant step toward self-reliance and cost efficiency in its 5G expansion,.
The report further said that Jio’s shift to in-house gear aligns with its efforts to optimize capital expenditure (capex) and monetize its 5G services. Jio’s FY25 cash capex was Rs 41,600 crore, including payments to capex creditors, per ICICI Securities’ analysis of company data.
The locally-manufactured products fall under Jio Platforms Ltd (JPL), which oversees RIL’s telecom and digital businesses. The Economic Times also highlighted that Radisys, a Jio Platforms-backed network design entity, may contribute to designing digital applications for these 5G small cells.
Industry experts noted that Jio’s move could give it a competitive edge over rivals like Bharti Airtel, as it is the only Indian telecom operator manufacturing its own 5G equipment. “Unlike 4G, in a 5G network, telcos will rely more on small cells—instead of traditional and costlier base stations—to boost 5G coverage,” an expert told the Economic Times. However, significant cost savings may take time, as Jio needs to deploy at least 100,000 small cells to see substantial benefits, a process that depends on growing 5G demand driven by compelling use cases.
Jio’s earlier 5G rollouts relied on equipment from Ericsson and Nokia, but its pivot to local manufacturing marks a significant step toward self-reliance and cost efficiency in its 5G expansion,.