Jio and Nokia to close 5G network order soon

Reliance Jio Infocomm Ltd and Nokia Oyj are expected to close a contract for around USD 1.6 billion soon. Last October, Nokia announced that it had reached an agreement to supply Jio with equipment for its 5G rollout in India. Nokia’s press release had said that the vendor will supply equipment from its AirScale portfolio, including base stations, 5G massive MIMO antennas, and remote radio heads to support different spectrum bands and self-organizing network software.

This is the first time that Jio is working with the two European vendors on RAN projects. Previously Jio had an exclusive partnership with Samsung for 4G RAN. Ericsson’s 5G RAN products and solutions (from the Ericsson Radio System portfolio) and E-band microwave mobile transport solutions are being used by Jio in its 5G SA network.

Jio has also created a full 5G solution that includes 5G radios, a complete 5G core network, cloud infrastructure setup as well as platforms to support cloud-based operations.

Jio has been in the news for some time now, that the telco is looking to raise around USD 1.6 billion to fund the purchase of equipment from Nokia Oyj and around USD 1.5 billion from Ericsson. The discussions have involved several prominent banks, including Citigroup Inc, HSBC Holdings Plc, and JPMorgan Chase & Co.

The loan will likely be priced over the Secured Overnight Financing Rate, a benchmark interest rate. It will have a maturity period of as much as 15 years. The loan structure and terms aim to provide favourable conditions for Jio as it aims to procure the necessary equipment for its operations. Finnvera, a Finland-based export credit agency will issue guarantees covering the majority of the loan.

According to a report, Jio has raised USD 3 billion from 55 banks and an additional credit of USD 2 billion from 18 banks. Jio has planned to make a cumulative 5G investment of USD 25 billion, of which USD 11 billion was spent on acquiring the 5G spectrum.

CT Bureau