Jio plans to develop standalone (SA) 5G architecture with its purchase of the pan-Indian 700 MHz spectrum, which has long-term benefits like a superior quality ultra-low latency 5G experience and a differentiated and wider range of applications, especially for the important enterprise segment, according to a report from JM Financial. Therefore, this may present Jio with a chance to entice some of its competitors' high-ARPU consumers over the medium to long term.
However, Bharti plans to launch 5G services based on non-standalone (NSA) architecture, essentially using the same infrastructure used in 4G and adding a 5G layer on top of it. This reduces capex significantly for Bharti as it saves on the expensive 700 MHz spectrum, reduces investment on related hardware upgrades for SA architecture, enables faster 5G deployments, and also cuts opex.
Hence, Bharti might not be at a disadvantage vs. Jio's SA 5G architecture in the near to medium term as 5G penetration is low and 5G use cases are still being developed, the report said.
However, in the longer run, SA architecture is a superior quality network with a lot more capabilities that can be developed. As 5G picks up and use cases get developed, particularly in the key enterprise segment, there is a risk of Bharti's network getting congested as the same infra is being used for both 4G as well as 5G services.
Jio, Airtel, Vi Prepare for 5G Rollout; These Cities to Get Services in 1st Phase
