Jio’s global ambitions: How US giants Comcast, Charter could help Mukesh Ambani's telecom company expand overseas
Jio Platforms is in talks with US cable operators Comcast and Charter Communications to explore partnerships for taking its wireless broadband technology to overseas markets, Reuters reported in an exclusive. The proposed deals could allow Mukesh Ambani's telecom company to expand internationally by licensing its technology to established operators rather than building its own networks abroad.
The discussions involve the possibility of licensing Jio's broadband technology to overseas operators in exchange for equity stakes, according to two people familiar with the matter cited by Reuters. No agreement has been finalised, and there is no confirmed timeline for a deal.
Comcast and Charter are attractive partners because both are facing growing competition in the US home broadband market. As customers move towards fibre and fixed wireless connections, the cable operators are looking for cheaper ways to retain subscribers and expand their services.
Jio's technology could offer them an alternative to traditional cable infrastructure, while giving the Indian company access to an established customer base in the US.
The technology, known as unlicensed band radio (UBR), uses transmitters placed on towers and rooftops to beam internet signals over unlicensed Wi-Fi frequencies. Receivers installed at buildings then provide broadband connectivity.
This approach avoids the need to acquire expensive licensed telecom spectrum, potentially reducing the cost of delivering high-speed internet.
Jio believes its technology could make it cheaper and easier for telecom companies to bring high-speed internet to more homes. Instead of laying cables to every building or spending heavily to acquire spectrum, operators can use nearby towers and rooftops to deliver internet wirelessly.
Neil Shah, director at Counterpoint Research, told Reuters that the technology could appeal to operators such as Comcast and Charter because it allows them to offer cellular-quality broadband without acquiring spectrum.
The potential commercial arrangement is not limited to the US. Jio has also held discussions with South Africa's MTN Group, although those talks collapsed after the companies failed to settle differences over valuation and licensing conditions, Reuters reported.
The company is looking to work with 10 to 15 operators globally.
Jio's leadership has indicated that it intends to be selective about where it deploys the technology. Managing director Akash Ambani said the company was targeting both developed and emerging economies but wanted to build a technology-led business internationally.
The expansion effort is being led by Dan Bailey, formerly chairman of Deutsche Bank's technology, media and telecommunications practice, and senior executive Mathew Oommen.
Jio enters these negotiations with a substantial domestic operating base. The company has more than 500 million mobile subscribers in India and nearly 15 million wired broadband customers. Reliance has also said that its UBR-powered user base has exceeded 6.5 million.
Jio's proposed overseas model would be different from the expansion that built its Indian business. Instead of spending heavily to acquire customers and establish infrastructure in foreign countries, Jio could earn revenue by supplying technology to existing operators.
For Comcast and Charter, the attraction would be a potentially cheaper way to compete in home broadband. For Jio, a successful licensing arrangement could turn a technology developed for the Indian market into an international business.
However, the discussions remain preliminary, and neither a partnership nor an investment agreement has been announced.
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