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Jio’s CapEx burden and monetization potential of 5G SA technology’s features remains a risk, says JP Morgan

Brokerage companies respond to Jio’s Earnings call

Goldman Sachs
“With significant investment likely by telcos in 5G over the next 1-2 years, we see an increased probability of a tariff hike to ease the free cash flow impact, and continue to expect this to happen before the end of CY22.

“Jio’s approach to 5G has striking similarities to its approach to 4G with the company investing aggressively-potentially ahead of time to create a state of the art network. While the addition of home broadband subscribers and incremental market share gains in the mobile segment will add to its revenue, Jio will still need to earn $ 4-5 billion in revenue from enterprise applications/further tariff hikes.”

J P Morgan
“The real-world applications and monetization potential of 5G SA’s non-speed advantages such as low latency and ability to handle massive machine communications are not proven. In addition, the capex to provide fixed wireless access at scale may prove prohibitive as scalability of FWA at 26GHz is poor at current network densities.”

CT Bureau

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