Reliance Jio 5G Network: Regarding Jio, the plan of Mukesh Ambani’s company Reliance Industries seems to be raising more funds. For this reason, the company has approached foreign banks. According to ET’s report, Reliance Jio will use this fund regarding 5G network. Reliance Jio plans to start broadband services on 5G network by the beginning of this year.
Indian billionaire Mukesh Ambani’s telecom company Reliance Jio Infocomm has approached global banks to take loans. The company will raise debt of around $1-1.5 billion. It has been said in the Economic Times report that this loan will be used for many other things apart from buying 5G network gear.
Global lenders like JP Morgan Chase, Citi, HSBC and others are ready to arrange debt for Jio for about 3-5 years, which is likely to cost more than the secured overnight financing rate (SOFR), reports ET . The loan price can be around 100 to 150 points above the SOFR. Apart from this, European Export Credit Agency Finvera can issue guarantees to lenders for giving offshore loans to Jio.
What is Jio’s plan regarding 5G?
Ambani’s Jio has been rapidly expanding its 5G coverage since last October. The telecom operator has already launched 5G services in around 5,700 cities and towns in the country. Jio says it will make a cumulative 5G investment of $25 billion, which includes the cost of acquiring $11 billion of 5G spectrum. Jio is the only Indian telecom operator to have applied for 700 MHz spectrum in India’s 5G spectrum auction.
Jio working with Ericsson and Nokia
Jio is working with European network sellers Ericsson and Nokia for its 5G. The telecom operator has also expressed willingness to raise $1.6 billion to buy equipment from Nokia.
It is noteworthy that Nokia had announced last October that it has signed a deal to supply equipment to Jio for 5G rollout in India. Reliance Jio has invested billions of dollars to acquire airwaves. With this, Ambani’s Reliance Industries Limited has become the first company to offer 5G in India.
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