Jio against Airtel Which one is better and faster 5G service?

Reliance Jio and Airtel are both in the process of preparing to roll out 5G services following the auctions for 5G spectrum ended earlier in the month.

Mukesh Ambani’s Jio has acquired spectrum that is more than twice the amount of Airtel and spent around the equivalent of Rs40,000 crore.

Here, we attempt to figure out the reason Mukesh Ambani was all-in with 700MHz and what he could utilize it for.

The auctions for spectrum in 5G are over and the top telcos in India including Reliance Jio and Airtel – are eager to begin launching the 5G service. One telco has left its competition analysts, analysts and even the government confused by the spectrum auctions it has bid.

Jio’s 5G spectrum bids add up to around the amount of Rs88,000 crore. This is more than double what Airtel has spent. However, only one band has been responsible for the doubling of Jio’s bid total which is the Mukesh-led telco obtained 10MHz spectrum from the 700MHz spectrum that cost more than the sum of Rs40,000 crore.

The two operators Airtel along with Vodafone Idea stayed away from this band since it’s costly.

Reliance Jio, whose parent company Reliance Industries is sitting atop its cash reserve and surplus Rs4.65 lakh crore jumped all-in on 700MHz and spent nearly the same amount as Airtel did, and that was just for the one band.

The main question is what is the reason? We are trying to figure out the reasons that might led Jio into taking a leap over its closest competitor not.

5G spectrum auctions purchased by telcosDoT/Business Insider India / Flourish

Does Jio 5G be faster and more reliable then Airtel 5G?

Jio’s 5G strategy is provide coverage and high speeds . Without one the other is not worth it. Imagine being able to access 5G but with slow speeds or a fast 5G network which loses signal each second you turn your head.

The 700MHz band offers Jio coverage, while the 3.5GHz band provides capacity, while it’s 26GHz band that provides the network speed. When combined the bands create 5G networks that are efficient and reliable, and both.

Airtel currently relies on the acquisition of spectrum in the mid-band to enable it to provide 5G services. In addition to its 3.3GHz band company has enough spectrum to begin however, analysts think it may require spectrum within the 700MHz spectrum later in the future.

Sunil Mittal might have kicked the can in the dirt in the moment it’s possible, but he’ll need to retrieve it in the future.

What was the reason why Jio purchase spectrum within the 700MHz frequency band?

The band with 700MHz frequency is among the most effective for coverage. The range is 8-10 kilometers across the tower. This could prove extremely beneficial for rapidly expanding coverage to remote and rural areas of the country It also provides better indoor coverage.

With Jio having acquired 700MHz of spectrum, it is our belief Jio is well-positioned to launch an independent (SA) 5G. The benefit over SA 5G is that the company could provide the most efficient low-latency services for example, like cutting. This is not something that competitors because of the insufficient spectrum (telcos are unable to offer this using 4G bands) as according to a BofA Securities report said.

The disadvantage of the band’s 700MHz frequency is all smartphones in India are yet compatible with it This means Jio must help build the ecosystem in conjunction with smartphone manufacturers.

“While 5G SA still lags in terms of equipment, handsets, and applications, we believe Jio more suited over its rivals to provide different services. This may assist the company in attracting top-end customers away from competitors – probably increasing competition at the upper price point,” the report added.

What is the purpose for the band 700MHz?

The band of 700MHz is low latency and allows Jio to make use of the 5G network to perform things such as remote surgery drones, robotics, drone applications and other machine-to-machine tasks.

This puts the telco in the best location to sell their services for the business segment which, according to experts, will make the most of the cash.

Additionally, the 700MHz band has a significantly longer distance of 8-10KM as contrasted with the 3.5GHz band that offers a three kilometers of range, as well as the 26GHz band, which has the possibility of a range up 200 meters. This will enable Jio to launch its 5G network faster because it will require less towers initially and give it an advantage in comparison to Airtel as well as Vodafone Idea.

What are analysts commenting on?

The Kotak Institutional Equities report said Airtel will need to purchase 700MHz spectrum later on when its coverage and quality of network isn’t as good as Jio. This could be a good thing in the favor of Sunil Mittal’s telecom company as it will free up cash reserves at the moment.

“From a purchasing power parity (PPP) perspective, 700 MHz pricing looks expensive for India, but it gives Jio a massive first-mover advantage in SA 5G rollout, which could help it poach high-end customers from peers,” the BofA Securities report added.

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