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The Battle for 5G has already been won by Mukesh Ambani’s Jio. Here’s How

Rahul Gupta by Rahul Gupta
19 July 2022
in Trending
5G JIO
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In the Laissez Faire concept of market and business, it is said that the government should refrain from frequent intervention in the economic affairs of industries. The theory speaks that the market itself is the biggest regulator. It regulates itself according to the demand and supply and ensures competitiveness.

Jio, the largest mobile network operator in India launched in September 2016, disrupted the whole telecom market and decreased the mobile data prices by about 95%. Before the launch of Jio, the average cost of wireless data was about Rs 269 per GB and after the introduction of Jio, it decreased to 11.78 per GB. So, it is imperative in Laissez Faire Market to maintain the competitiveness of business, it helps in balancing the commodity prices.

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Ambani’s Jio leading the 5G battle

Recently the Department of Telecom invited an open bid for auctioning of the 5G spectrum. Except for Adani Data Networks Limited, everyone who took part in the bid was a traditional telecom operator. It was expected that the introduction of Adani in the 5G space would prove to be the new dawn in the competitiveness of the telecom sector and ultimately consumers would be the final beneficiary. But, Pre-Qualified Bid Amounts published by the Telecom Ministry have already announced the winner of the 5G battle.

In the List of Pre-Qualified Bidders, four telecom companies have submitted their earnest amount with the Telecom Ministry. With about Rs 14000 Crores of earnest money, Reliance Jio Infocomm Limited has become the highest bidder in the 5G telecom. The others on the list, Bharti Airtel Limited with ₹ 5,500 Crores, Vodafone Idea Limited with ₹ 2,200 Crores, and Adani Data Networks Limited with a meager ₹ 100 Crores are the second, third and fourth in submitting the earnest bids.

Earnest money is the initial deposit amount of any transaction. It normally remains in the range of 1-10% and reflects the final bidding amount. Ambanis’ submission of a whopping ₹ 14000 Crores reflects their intention to rule the 5G business.

Also Read: Who will become the Anil Ambani of the future Reliance?

Jio will rule the 5G industry

Early in 2019, Mukesh Ambani, speaking on the importance of Data in the Vibrant Gujarat Summit, said, “In this new world, data is the new oil. And data is the new wealth,…”

Traditionally ruling the oil market of India and the region, Ambani’s comparison of data with oil had set the tone for the future course of Reliance’s business.

As the world is experiencing the industrial revolution 4.0, the business leaders are also shifting from the traditional business industries to the future of business. Realizing the future of business, Reliance’s investment in digital space has exponentially grown. In December 2021, Ambani, speaking at the launch of Digital India Week, announced that Reliance will invest over ₹ 2.5 Lakh Crore across the Digital India pillars. And, submission of a whopping ₹ 14000 Crore seems to be the trailer of Reliance’s investment in the digital space.

Also Read: Akash Ambani will be heading Reliance Jio now

Adani Group in its bidding statement had announced that its intention is not to be in the consumer mobility space and will only be engaged in network solutions for airports, ports and logistics, power generation, transmission, distribution and other manufacturing operations. The surprise entry of Adani Data Networks Limited into the 5G spectrum bidding was expected to give a tough fight to Ambani. But, the bid submission by Adanis has already declared Jio as the winner of the 5G space.

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