The European export credit agency Finnvera is going to be the guarantor of the loan
Already 5,700 cities and towns of India are under Jio’s 5G bandwidth cover
For rolling out the 5G band across India, it is primarily working with network vendors Ericsson and Nokia
Reliance Jio Infocomm is reportedly in talks with some major global banks to raise $1 Bn – $1.5 Bn through offshore syndicated loans to buy 5G network gear from Sweden’s Ericsson.
According to two people aware of the matter, the idea is to roll out the next-gen mobile broadband services across the country by the end of this year
According to an Economic Times report, banks including HSBC, JP Morgan Chase and Citi are among the ones that are preparing to arrange a loan for the telecom giant for 3-4 years.
ET quoted the sources saying, “Discussions are on, and Jio is likely to shortly finalise the appointment of bankers as it prepares to buy 5G radio network equipment from Ericsson.”
The European export credit agency Finnvera is going to be the guarantor of the loan.
Jio has been expanding the 5G bandwidth rapidly across India and already 5,700 cities and towns are under its cover.
Currently, being the sole holder of the 5G airwaves in the coveted 700MHz band, Jio has opted for standalone mode for its countrywide 5G network rollout. For rolling out the 5G band across India, it is primarily working with network vendors Ericsson and Nokia.
According to the report, Jio is planning to make a cumulative 5G investment of $25 Bn, of which $11 Bn was spent on acquiring 5G spectrum.
To add to Jio’s 5G goals, in March this year, the company announced that it would acquire the US-based communications equipment manufacturer Mimosa Networks for $60 Mn in a debt free, cash free deal.
In the Indian network market, Jio has surpassed Bharti Airtel by adding 3 Mn subscribers in April 2023. While Airtel could add only 76, 328 users to the network, Vodafone-Idea (Vi) lost nearly 3 Mn subscribers during the same period.
Looks like Reliance Jio is on a mission to take over the Indian digital market not just through the telecom business but also with its content platform JioCinema and ecommerce platform JioMart.
Further, bagging the IPL streaming rights was a big blow to the consumer internet major Disney+Hotstar. During the latest IPL season, JioCinema made a new record when 32 Mn viewers tuned in to watch the league’s final match, featuring Chennai Super Kings versus Gujarat Titans on the platform.
Additionally, earlier this year, JioCinema announced plans to release as many as 100 movies and shows, produced at a cost of INR 2,000 Cr, over the next 18-24 months.
However, things seem to be staggering for the conglomerate on the ecommerce front. Though last year it announced partnership with WhatsApp to offer end-to-end service of JioMart on the platform, the outcomes may not have been favourable.
In the wake of acquiring Metro Cash and Carry, JioMart has reportedly laid off more than 1,000 employees.
In addition, the operation of its quickcommerce app JioMart Express has also been reportedly shut and taken down from Playstore, while its website has become inaccessible.
However, Reliance Jio’s plans to transform itself into a digital conglomerate doesn’t seem to be confined to ecommerce and content space. Last year, it launched its new cloud gaming platform JioGamesCloud in beta mode on its JioGames app. JioGames said that the gaming platform can be accessed via smartphones, web browsers, and Jio Set Top Box.