The Chronicles of 5G deployment in India : News and Updates

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Mukesh Ambani’s army of expats at Jio

Updated: 30 Jan 2018, 08:52 AM IST
By Sunny Sen

Over the past six years, Reliance Industries has hired many expats to innovate and differentiate at the world's fastest-growing telco
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Photo:
(Clockwise from top) Rainer Deutschmann, chief product and innovation officer; Tareq Amin, senior vice-president of technology development and automation; Nikola Sucevic, assistant VP and lead, data analytics development in area of radio coverage and capacity, machine learning, and telecom data mining; Stratos Davlos, head, platform and engineering; Janina Anjuli Schmidt, design lead; and Caroline Seifert, former chief brand and design officer.
(Clockwise from top) Rainer Deutschmann, chief product and innovation officer; Tareq Amin, senior vice-president of technology development and automation; Nikola Sucevic, assistant VP and lead, data analytics development in area of radio coverage and capacity, machine learning, and telecom data mining; Stratos Davlos, head, platform and engineering; Janina Anjuli Schmidt, design lead; and Caroline Seifert, former chief brand and design officer.



Ask any Reliance Jio insider and you will be told Building TC-22 at the Jio headquarters in Navi Mumbai is where the action is. On the seventh floor is Mukesh Ambani’s desk— four feet wide, bare and with a telephone on it—one among 200 other workstations on the floor.

“MDA spends a couple of hours every Wednesday here," says a Jio executive. MDA is Mukesh Dhirubhai Ambani, India’s richest man and the chairman of the Reliance Industries group of companies. “I personally thought that this wouldn’t work for long. But it has. There is no hierarchy and it is a totally flat organization, very different from the refinery business," says the executive.

Why the open-plan office, especially for Ambani who spent most of his career in offices where business was conducted behind closed doors? “To retain talent," says a second person, a senior Reliance Industries executive. “As MDA often says, we are a start-up. We have to behave like one."
Jio started operations just about 16 months ago. It sees itself in the digital business, not as a telco. Most of its people are in their 20s and 30s. And, its staff—with an unusual proportion of foreigners—are pushed to disrupt every aspect of a telco’s operations: the network, building security systems, devices, branding, consumer behaviour, etc.

This is the story of those expats and how they changed Jio’s fortunes and the Indian telecom business. Most of them were personally hired by Ambani and his lieutenants signing on the talent from across industries and the globe in the last seven years.

The second person cited earlier confirms that as much as 15% of the 20,000 people working at the Jio Navi Mumbai campus are expats—many of them in key roles. For the two months that FactorDaily worked on this story, Jio turned down its requests for meetings with any of its expats and attempts to contact them individually were mostly unsuccessful.

First, a quick list of the senior expats. Jio’s chief product and innovation officer is former Deutsche Telekom executive Rainer Deutschmann. Networks is headed by ex-Sprint chief technology officer Mathew Oommen, an American with Indian roots. Stratos Davlos, hired from Apple, heads platform and engineering and was instrumental in developing the Hello Jio voice assistant. Jordanian Tareq Amin leads tech development and automation. Caroline Seifert was its chief brand and design officer for a year. Janina Anjuli Schmidt worked closely with Seifert and now leads design. Chinese Shuming Li looks after all of Jio’s wifi rollouts. Marcus Brackebusch was one of the brains behind platforms and systems (Jan 2015 to May 2017). And Nikola Sucevic, a Swedish data scientist, leads data analytics development in area of radio coverage and capacity, machine learning, and telecom data mining.

This is just at the top. “There is a significant number of people at a variety of levels… from super senior most people reporting directly to MDA, to straight down," says keen Jio watcher Kunal Bajaj, a former director at Paytm and ex-India head of consultant Analysys Mason.

To be sure, this is not the first time Reliance Industries is working with expats. Even in Jamnagar, its refinery was set up by foreign experts with long years in the petroleum business. “The group has always worked with international people. With digital, it has grown further," says the second person.


The network is key to Jio’s strategy and one of the four top differentiators it has to grab customer market share; the other three being cheap devices, a large family of apps, and low tariffs—these would be ineffective sans a data-ready network.


FactorDaily interviewed nearly a dozen people within and outside Jio to get an understanding of how Ambani’s team of expats works and how it helped build the fastest growing telecom company in the world with some 146 million subscribers.

When Ambani decided to build Jio in 2011, he knew it had to be different from the very beginning if it was to disrupt incumbents. This meant going to the core of a telecom business operation: its network. For the first time, any telecom operator in India had decided to build a 4G network, primarily focussed on data. Even calls on Jio’s network would run on data.

Network fury

In a country just embracing 3G technology, Jio’s punt on 4G was amusing to many. Airtel, Vodafone India, Idea Cellular among others were still rolling out the 3G network and waiting for people to taste internet on 2 or 2.5G networks. To be sure, globally, companies such as Vodafone, China Telecom, and Verizon had started building 4G networks. But, nowhere in the world had a telecom company built an LTE-only network from scratch.
Jio did.

“Jio came in late, but it had an advantage of setting up a network that was futuristic. The Jio network is 5G ready," says telecom veteran T.V. Ramachandran. “Jio went on with deployment of 4G equipment, others thought Ambani was doing a mistake."

India didn’t have much talent to build this network. Ramachandran explains that apart from makers of telecom equipment like Ericsson, Nokia and Huawei, no one was spending on building R&D around networks. “When you don’t have people in India doing that, the best thing is to get people from abroad to set it up," he says, adding that BT (the erstwhile British Telecom)—and now Jio—is the rare telco that does network R&D.

Ambani handpicked Oommen, who was earlier the chief technology officer of Sprint, responsible for network and technology development, systems architecture, and device development.

Oommen had worked with Reliance Infocomm—the telecom services business that Ambani had started in 2003 but had to part with in a family business split with brother Anil—and it wasn’t difficult for Jio to get him back to India. “Oommen is one of the top five guys in the world in network technologies," says a person, who works closely with him.

Oommen’s network team is from across the world. Jio has the largest fibre backhaul network; its radio network is wider than anyone else. Oommen helped design a network where everything rides on data, even voice. Hence, voice consumers only use 10-15% of the bandwidth, allowing Jio to utilize more of its network for data.

A senior executive of an incumbent operator says, “While we are deploying LTE network, 50-60% of our network utilisation is still for voice. Jio’s is much less."

The network is key to Jio’s strategy and one of the four top differentiators it has to grab customer market share; the other three being cheap devices, a large family of apps, and low tariffs—these would be ineffective sans a data-ready network.

Oommen knew that. On the IP-based Jio network, the cost of servicing data and calls is as low as eight paise for a minute. For others, it is about 30 paise, but this includes the contentious 14 paise interconnection usage charge.

He continues to travel for a couple of weeks every couple of months. “He has a team in the US to do a lot of international tie-ups… who work on network innovation. His team here has a lot of expats – mostly people of Indian origin who wanted to come back," says the person who works with Oommen.

Once the network was in place, Ambani wanted to tackle the next big hurdle: devices. Even there, he found out that Jio was in a virgin territory.

Affordable = Mass Market

Early in 2003, months before the Reliance Infocomm launch, Ambani had asked colleagues at a meeting: “What is the cheapest cost of communication?"

“A postcard!" he answered his own question. “That costs 40 paise." The calling rate in an offer called Monsoon Hungama launched July 2003 was set at 40 paise a minute.

In 2011, Ambani was following the same affordability playbook: 4G smartphones had to be affordable. He and a few others visited China and met with several phone makers. “Half of the world’s devices are made in China," says the second person quoted earlier.

Beginning 2012, Jio started sending a lot of people from Mumbai to China to put together the devices strategy and roll it out. The only 4G devices were from Apple and Samsung and they were very expensive and wasn’t fitting into Jio’s plan. “We were always thinking of hundreds of millions of customers and in that context LYF was created," says the second source. LYF was the initial crop of custom-readied phones for Jio, which then made way for the JioPhone.

The TC-22 tower was again the hub of Jio’s work on devices. A team of designers was put together from different countries: China, Germany, England, Israel and the US. The team spent an inordinate amount of time in China. Adding an extra band for 4G services to existing phones would make them costlier by Rs2,500-3,000. So, the team started designing a phone from scratch with partners in Europe and China. It took them a year to make it but they could price the LYF phone at Rs4,000.


With LYF, Jio had brought down the price of 4G phones to a fourth of prevailing prices. With JioPhone, it further reduced the price to the level of feature phones.


Within months of launch in the first quarter of 2016, LYF captured 7% market share in smartphones in India, according to data from Counterpoint Research. By the third quarter, the phone was out of stock. “With the commercial launch of Reliance Jio service with attractive introductory offer, the LYF branded smartphones saw a sharp demand with reports of stock-outs at some locations," Jaipal Singh, senior market analyst, client devices, IDC, wrote in a report.

Soon, the market followed Jio and LYF and suddenly 4G smartphones were much cheaper. Between September 2016 and September 2017, the 4G smartphone base went up from 86 million to 178 million. Jio gained the most with its first mover advantage—from 16 million to 139 million—during the period.

But it wasn’t easy for the expat designers. “LTE is a very dynamic network. The networks are constantly optimising itself, and there are software-driven networks. There is no human intervention. That interaction with devices is constantly changing," says a third Jio executive, who is one of the expats.

A dominant share of new 4G additions was good but Jio realised that to attract a large number of users of feature phones, which typically are voice and SMS only, the Rs4,000 tag for new phones was too high. So, the design team, full of expats, worked on what would be called JioPhone—a smart feature phone. It was not easy. “We are not a devices company, we don’t make phones. But, the team figured the lowest we can go to give a smartphone experience," says the second executive mentioned above.

With LYF, Jio had brought down the price of 4G phones to a fourth of prevailing prices. With JioPhone, it further reduced the price to the level of feature phones.

Copycats followed quickly. Soon, every operator partnered with the likes of Micromax, Karbonn, Intex and Lava to make cheap smartphones and bundle them with services—India’s data world was being disrupted.

Disrupting the market

Finding people has become a little bit easier since the September 2016 launch of Jio. One big advantage that really excited a lot of people was the vision of Jio, which made people to come and work here. “MDA and (Manoj) Modi—they were meeting people personally. They have been the HR managers," says the second person.

During one such meeting, Jio hired someone from Apple to build the entire customer service and experience. FactorDaily is not certain about this person but it most likely to be Stratos Davlos, the head of platform and engineering.

“The user experience is from someone who has come from Apple. He built his team here and got more people from Apple," says the second executive, without saying whether it was Davlos.

Another Jio executive working closely with the team confirmed it is a 20-25 member team. MyJio was the first app that it started to build, which allows users to recharge their phones, track usage, get coupons, and gift vouchers to friends and family. MyJio, the company claims, is the fastest app to get 100 million downloads. The team didn’t stop there—it wanted to extend the same user experience to its cinema and live television apps.

“Unlike other telcos, integration of content and the network started in Jio from the very beginning… which is critical to deliver a seamless customer experience," says Mritunjay Kapur, a partner at KPMG India specialising in telecom, among other industries.

Once Jio had its pricing in place, it went after innovative marketing. It knew a single version of a campaign doesn’t fit all of India and so bought technology and language translation licences from SDL, a London-based company. “It was the first time any telecom operator was buying licences for the entire stack," says Richard Delanty, who worked closely with Jio and was the senior vice president—sales and operations at SDL.

Soon, SDL was flying people to Mumbai for large integrations. “Jio was running multilingual campaigns, but the entire workflow was automated, which gave Jio the ability to do multi-region rollouts at speed and scale," says Delanty. Once a campaign was designed in English, at the press of a button it would go to the translators and would come back after translation. Since the workflow was automated, there were no follow-ups and the campaigns would go to the respective regions.



Tech: the holy grail

“The size, scale and speed of the network rollout was unprecedented… The availability of talent in the country wasn’t enough for something like this," says Kapur of KPMG.

For Reliance, it was important to collect a lot of network data, user insights and monitor the surges of usage. To begin with, Jio decided to get some people from the US, who had worked on analysing tons of data. In July 2015, Jio hired Nikola Sucevic, a ex-Ericsson executive with two decades of experience in telecom and data science. Others—Indians and foreigners— were hired from companies such as Microsoft and boutique data science companies. The data team has some 30 people.

On the network security side, the team is headed by a person from the UK, aided by four other expats. The information security function was headed by hacker Karsten Nohl, famous for exposing flaws in telecom networks potentially affecting millions of users all over the world, for three years until March 2017.

Young and expat hires have changed Jio and Reliance Industries. About half of the people on the Jio Navi Mumbai premises come to work casually attired, as FactorDaily noticed on a visit to the Jio office late last year. Ambani, who continues to dress in his usual white shirt and black trousers, is often seen huddled with employees in jeans and t-shirts. “If you look at them you can’t make out that they are doing such serious work," says the second person, chuckling.

The casual attire was a big change within Reliance, so were Saturday holidays. “Now, even one of the canteens have started serving non-vegetarian food," says the second person. Jio employees go out in the evening to the gym or to play tennis and come back to work in shorts.
Still, there is a problem: most of the expats don’t move with their family, as want to go back after sometime, especially if they are not senior-level executives.

“The ecosystem for expats isn’t there. The [Reliance] group has a very good school, but then not everyone can be admitted. For expats to come and stay here, their lifestyle needs to be developed," says a senior executive at Reliance. “If you want a 25-year-old German to come and stay here, you either need to pay him a lot, otherwise he will struggle here."

That’s a problem Ambani and Jio will have to deal with. Not everything comes easy when you are building a digital-first telecom services company in India—even if you have spent Rs2 trillion building it.

Factordaily
 
Old Article :


5G lessons we can learn from Reliance Jio and Rakuten

By Sean Kinney, Editor in Chief on SEPTEMBER 11, 2019

A cloud-first strategy takes cost out of 5G, setting the stage for profitability


SINGAPORE–To be clear, neither Reliance Jio in India or Rakuten in Japan currently offer 5G services. In fact, Rakuten recently delayed the launch of its LTE network. Nevertheless, the two operators have taken a similar approach to quickly and cost-effectively constructing their networks that could very well put them in poll position when it comes time to launch and monetize 5G. And while the vast majority of operators don’t have the luxury of a greenfield build, there are still some key lessons that can apply to carriers working to balance the capex lift of 5G while fighting an uphill ARPU battle.

Reliance Jio lit up its LTE network in September 2016 and today is the largest operator in India with some 350 million subscribers. “While we were rolling out the 4G, first of all we didn’t want to have any legacy in our network,” Vivek Dixit, Reliance Jio vice president, said during the 5G Asia event this week. “We totally focused on an all-IP network. The thing that we were doing is about IT basics. It’s not a telco skill.”

This is an important point. A standalone 5G network capable of automatically provisioning network and spectral resources into a bespoke slice requires a much more IT-centric approach. Enhanced mobile broadband, massive IoT and ultra-reliable, low-latency communications will seamlessly span distributed edge compute and storage equipment and centralized data centers, both running the full gamut of virtualized network functions, giving operators and users a whole new level of agility. We’re not exactly there today because, well, that’s not how networks have ever been run or operated before. But they can (and hopefully will) be.

India’s telecoms regulator is working toward a 5G spectrum auction in the first-half of 2020. But, “From the technology front we already started taking actions,” Dixit said. “We virtualized our core network. We are separating control plan from user plane. We are virtualizing, we are cloudifying the core network.” And, considering that Jio brought 160 million subs onto the network in less than two years, those investments in automation were an imperative.

Getting to zero-touch

Cisco provided a wide-range of solutions in Jio’s build generally designed to facilitate massive and rapid scaling. For instance, Cisco tech made it possible for new Jio customers to get SIMs activated in about 15 minutes. Open APIs provide fault reporting and remediation, performance management, capacity planning, traffic engineering, network inventory reporting and more, according to Cisco. The automation platform uses products like the Evolved Programmable Network Manager, Data Center Network Manager, WAN Automation Engine and Network Service Orchestrator among others.

Cisco’s Sanjay Kaul, president of service provider business in Asia Pacific and Japan, laid out three dimensions of service provider transformation. First, you’ve got to have a flat, all-IP network. Second is “data center and cloud transformation. Typically we build these massive data centers. Now, as the data is proliferating, a lot of the data is happening at the edge of the networks. It’s a fool’s paradise to bring all that data back to the center. Third–and “this is a difficult one,” he said–is the “Uberization of OSS and BSS, which essentially means making those functions happen as needed with no manual intervention. “There will be orchestration, automation of this entire layer so we can make it very agile, very flexible.”
Image courtesy of Cisco.

“Everything should be automated,” Dixit said.

The profitability problem

What consumer-facing 5G service plans will look like is an open question but, if you zoom out, that’s not the most pressing problem. The most pressing problem is that, in some developed markets, mobile penetration has passed 100% meaning there’s only so many SIM cards a carrier can sell to you and me. So the next step is to connect everything else–robots, cars, industrial equipment, whatever.

5G isn’t just about the radio access network, Kaul said. It’s about virtualization, artificial intelligence, machine learning, the internet of things and enterprise enablement. “When we talk this language, I think we will solve a lot of things. Putting another radio that gives you speeds and feeds, you will never monetize that. But if you create use cases that will solve the world’s problems, you will monetize.”

This is a point Mavenir SVP John Baker has made pretty much every time we’ve chatted or I’ve seen him present and it’s a point well-made. During a panel discussion at 5G Asia, he recalled seeing a slide from an earlier presentation that essentially called out Ericsson and Nokia as the network infrastructure vendors. “If that’s [the]view of the supplier ecosystem, then I think we’ve got a lot of education to do in the industry. Operators are struggling with profitability, they’re struggling with network architectures that are very hierarchical and now is the time to introduce change. And that includes broadening the supplier ecosystem. As an industry we’ve really stepped back. We’ve allowed closed systems to be developed.”

So how do we open up those systems? Well, it takes a village, so to speak. Industry-wide collaboration around open-source software for network functions virtualization and cohesion around moving that open approach out of the core to the RAN, where the bulk of capex is directed, is imperative. To borrow from Ubuntu philosophy, “If you want to go fast, go alone. If you want to go far, go together.” As it relates to 5G, the industry needs to plus that up and get together to go far fast.

Back to Baker to drive that home a bit more: “Open RAN is really the start of the business transformation of the industry. It really started with breaking that one interface between the radio unit and the baseband unit. It’s now a public interface and operators are slowing adopting it. Product with O-RAN interfaces is starting to come to market. Today the operators have been very much used to given the challenge to Nokia and Ericsson.” But, with an open RAN approach, you “get the benefit of no margin stacking. Apart from the radio head, everything else is software. Open RAN to me is an ecosystem; it’s not a technology.”

Jio and Rakuten take similar tacks

Jio and Rakuten have a lot in common. Cisco and Mavenir are both major vendors as is radio vendor Airspan. Cisco is providing Rakuten with NFVi and orchestration tools; Mavenir is providing NFV-based RCS tools for voice and messaging; Airspan was picked for its Air5G platform, which supports open RAN architectures and can connect with a virtualized baseband.

And there’s one more commonality–Tareq Amin. With Jio, Amin served as senior vice president of technology development and now he’s Rakuten Mobile’s chief technology officer. Based on those recurring vendor selections, dude clearly knows what he likes and what he likes is cloud-native networks.

He laid out the vision for Rakuten in January in a company blog post. “The journey that we are embarking on in Japan will enable a complete transformation in the telecom infrastructure buildout. We are building the world’s first end-to-end fully virtualized cloud-native network. The majority of the telecommunication companies in the world have been on this journey of transformation. And yet I would argue that very little progress has happened to deploy a true end-to-end cloud native network. In fact, there is not a single telco in the world that has moved all of its workloads to the cloud. I think Rakuten is going to be the only company in the world that’s going to enable this.”

Will 5G be the last G ?

As we’ve laid out here, building a cloud-native network is a difficult task and, in practice, has really only been accomplished in these greenfield network builds not anchored by legacy systems in need of a massive and expensive overhaul. That’s even trickier in the context of uncertain consumer profitability from 5G and the notion that real profitability comes after the network has been broken apart and glued back together with software.

“It’s all about automation and zero-touch,” Baker said. “I think that’s really where the key to the future of operating mobile networks is. If I predict four or five years, if it carries on like it is today, 5G will probably be the last generation of technology that rolls out because mobile operators just won’t be profitable.”
 
Old Article :

Jio and Rakuten are pioneers: Cisco

Cisco's network virtualisation solutions helped deploy Reliance Jio and Rakuten's mobile networks of the future.

By Corinne Reichert | March 7, 2019 -- 05:17 GMT (10:47 IST)



India's Reliance Jio and Japan's Rakuten are pioneers for the mobile networks of the future, Cisco president of Asia-Pacific, Japan, and China Miyuki Suzuki has said.

"Reliance Jio had a vision of the possible; they wanted to transform the lives of the 1.2 billion people in India by building a 4G-only virtualised network," Suzuki said during the Cisco Live 2019 keynote in Melbourne. "Cisco and Reliance Jio did this together in just three years, and now they have 280 million subscribers .........only Facebook had that rate of growth."

"The vision was access for everyone, and India went from being the 155th global rank in terms of data usage in the world to being number one."

All-IP, 4G-only operator Reliance Jio was formed in 2016 by oil and telco billionaire Mukesh D. Ambani, who ramped up rapidly by offering very low-cost bundles. In mid-2018, Jio announced adding 28.7 million customers during a period of just three months, after adding 26.5 million in the prior quarter. Independent benchmarking company OpenSignal called Jio's 4G availability and rapid rate of customer growth "remarkable" and "hugely impressive" at the end of 2018.

Both Jio and Rakuten are pioneers, Suzuki told ZDNet, with Cisco helping the former build out its evolved packet core and "deal with the hyper-density of the small cells". "With Rakuten, it'll be the first virtualised and cloud-based [network]," she added.

"The wonderful thing about both these service providers is that they're pretty much greenfield, so unlike some of the existing telecommunication providers who need to think about how they utilise the assets they've invested in, how they make new 5G technology, for instance, coming forward backwards-compatible with their 4G networks and their fixed-line networks, these players can really do very pioneering things."

Jio was a precursor for Rakuten, with the latter's CTO hailing from Jio originally, bringing along with him the learnings from deploying a virtualised network. "The benefit of Jio and then now Rakuten is they're starting telecommunications businesses from scratch," Cisco Australia and New Zealand CTO Kevin Bloch told ZDNet.

"Whereas for a Telstra, an NTT, or an AT&T, that's not so easy. They've got to transform their existing operations, and that's one of the challenges that existing incumbent operators have -- they've got to carry a lot of costs and complexity with them, whereas these players just cut loose". Cisco is currently helping Japanese online marketplace Rakuten build the world's first fully virtualised, cloud-based mobile network, Cisco global director of Mobility and 5G Bob Everson last week told ZDNet at Mobile World Congress (MWC) 2019 in Barcelona.

For the Rakuten build-out, Cisco has lent its routing and switching hardware, software, and services across its cloud, IT, and service provider portfolios. The networking giant also provided its experts from engineering, security, operations, and multi-vendor systems integration.

Once deployed, the network will be fully virtualised, with multi-access edge computing; software-defined networking; centralised and regional datacentre capabilities; and full service and infrastructure automation. Rakuten Mobile Network CTO Tareq Amin said his company's network will be "software powered and automated from top to bottom".

"With this design approach we mapped out with Cisco and a careful selected vendor ecosystem, we believe we can offer high-value services at more affordable costs, helping our customers to share the true benefits of cloud innovation," Amin said. According to Amin, this virtualised, cloud-based approach is going to save his company at least 35 percent in opex compared to traditional mobile carriers.

Bloch explained that the network uses inactive hardware with no software in it, a trend that telco networks are moving towards due to the "massive benefit" of deployment costs. The intelligence now sits in the cloud rather than in the physical antenna.

"What you're seeing here is a network that is infrastructure as code. It's completely different," Bloch said. By decoupling the hardware from the software, Bloch said Cisco is bringing the network's control and policy into one place.

The second benefit is using all the data coming in from the virtualised network to help operators make better decisions; shift tasks from humans to machines; and fix things before the customer knows there's an issue, such as providing more bandwidth and putting more antennas up in areas that are predicted to become congested.

"If you're running cloud native, then Rakuten can optimise how they build their infrastructure to run their operation; that's pretty powerful, because you can move your cloud application when Rakuten says it will be better on this cluster or that cluster without having to rewrite the code," Bloch explained.

SECURITY IN A VIRTUALISED NETWORK WORLD

With the world becoming increasingly digitised, however, Cisco global COO Irving Tan said more security issues are expected. "We also need to be mindful; we're fundamentally and exponentially increasing the attack surface ... it exposes us to more threats, data breaches, issues like ransomware and malware," Tan said at the Cisco Live keynote.

"In everything that we do, security has to be applied everywhere ... it has to be built in". The average Asia-Pacific enterprise has to deal with 10,000 threats daily, Tan said -- and even more for multinational companies.

"Our CISO maintains the bad guys are winning ... I believe Cisco gets hit 20 billion times a day, Telstra gets hit 3 billion times a day," Bloch said, adding that there were 120 million new variants of malware last year. However, infrastructure as code allows operators to "set not only policy but do some clever things with segmentation", Bloch explained, which will help maintain security across different network applications.

The addition of more and more artificial intelligence (AI) into the network will also help with security, the CTO said. "We need AI to really take over and augment humans to prevent those 3 billion attacks a day, 20 billion attacks a day, you name it."

Disclosure: Corinne Reichert travelled to Cisco Live 2019 in Melbourne as a guest of Cisco
 
Reliance Jio officially enters 5G space as a technology vendor; aims to export tech to global telcos
Jio Platforms Key Announcements: Google-Jio's Affordable Smartphone, Jio 5G India's 1st 5G Network and More
Jio to take on Nokia, Ericsson on 5G tech - Business Line

This is a Huge development... Our very own Desi Huawei..😘😘
 
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Here are two apparently good articles on the recent developments with Jio. Unfortunately these are behind paywalls.


 
The right person to answer this would be @Bali78 but he's not been online since the last 3 months. The not so right person to answer this is @randomradio

But then @lcafanboy has just posted a series of articles on Jio & RIL's activities in this sphere. See the investment by Google, FB, other US & European investment banks as proof of the fact that Jio would try to make an attempt to replace Huawei in the European & US markets with the aforementioned firms acting as their ambassadors.
Mukesh Ambani recruited some senior guys from Reliance telecomm and started Rancore technologies in 2007. One of my batchmate was part of this team. This team was involved in development of WiMax BTS and 4G LTE Node B. Initially we were skeptical about this team since there was no clear roadmap or deadline for deployment. But now it all looks pretty well planned by Ambani provided they actually developed 5G network systems. 13 years is a long time and it's certainly possible to develop systems with acceptable quality. After all 5G building blocks are similar to 4G and incremental in nature. Rancore technologies was merged with Jio in 2017.

Having said that I'll still be skeptical about Ambani. This guy can easily put an Indian stamp over a Chinese equipment and sell as "Made in India" !!
 
There should be a paper trail with respect to patents. Jio must have filed for a lot of patents over the years.
Not necessarily. In C-DOT, we had a working WCDMA (3G) Node - B, but we didn't file any patents. I am not saying JIO couldn't have designed the system. They had enough time, man power and money to come up with a 5G system. If they have really done it, then that has the potential to break the glass ceiling and change our old mindset of "India main kuch nahin ho sakta" !!
 
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Not necessarily. In C-DOT, we had a working WCDMA (3G) Node - B, but we didn't file any patents. I am not saying JIO couldn't have designed the system. They had enough time, man power and money to come up with a 5G system. If they have really done it, then that has the potential to break the glass ceiling and change our old mindset of "India main such nahin ho sakta" !!

There have been patents filed, not sure if it's enough though. But I'm sure a lot more are on their way.

Reliance Jio has filed till date 134 patents for the pioneering initiatives it has undertaken in the telecom sector of which 29 have been granted.

Jio has strived to lead innovation in India across network technology, platforms and consumer services and has filed 31 patents in FY2019-20 of which 10 were granted. The patents span across devices, network, cloud, digital media, branding and customer experience.
 
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India, Jio, and the Four Internets

By Ben Thompson
Posted on Tuesday, July 21, 2020


One of the more pernicious mistruths surrounding the debate about TikTok is that this will potentially lead to the splintering of the Internet; this completely erases the history of China’s Great Firewall, started 23 years ago, which effectively cut China off from most Western services. That the U.S. may finally respond in kind is a reflection of reality, not the creation of a new one.

What is new is the increased splintering in the non-China Internet: the U.S. model is still the default for most of the world, but the European Union and India are increasingly pursuing their own paths.

The U.S. Model

The U.S. Internet model is a laissez-faire one, and it is hard to argue against its effectiveness. Not only is the technology sector the biggest driver of U.S. economic growth for many years now, but U.S. Internet companies have come to dominate most of the world, conveying U.S. soft power like McDonald’s and Hollywood on steroids. There are obvious downsides to this approach: the Internet’s lack of friction both leads to Aggregators dominating markets and creates communities both good and bad.

This article, though, is primarily focused on economics and politics, and in that regard the winners and losers of the U.S.’s approach are as follows:

Winners:
  • Large U.S. tech companies operate freely in the U.S., giving them a large and profitable user base to fund expansion abroad.
  • New U.S. tech companies face relatively few barriers to entry, particularly in terms of regulation of content or data collection.
  • The U.S. government collects the vast majority of taxes from these U.S. companies, including from revenue generated abroad, and also sees the overall U.S. view of the world exported via U.S. tech companies, while also having access to the data of non-U.S. citizens.
  • U.S. citizens operate with a high degree of freedom online, although there are minimal restrictions on the collection of the data generated from doing so by private companies.
  • Non-U.S. citizens operate with a high degree of freedom online, although there are minimal restrictions on the collection of the data generated from doing so by private companies or the U.S. government.
  • Non-U.S. companies are free to operate in the United States without restriction, and in other countries that follow the U.S.’s approach.
Losers:
  • Non-U.S. governments have limited control over U.S. tech companies, limited access to their revenues, and limited control over the spread of information.
My biases should be obvious: I definitely believe that the U.S. approach is the best one. Certainly many will quibble with the effect on new companies, given how Aggregators tend to dominate their markets, while others are focused on the collection of data; I am concerned that proposed solutions are worse than the harms, particularly given the consumer benefit of data factories. Still, as I noted yesterday, I believe the European Union Court of Justice makes a compelling case that the ability of the U.S. government to collect data from non-U.S. citizens is a serious privacy issue.

Those quibbles, though, serve to highlight a point we can all agree on: non-U.S. governments have a lot of legitimate complaints about the hegemony of U.S. tech companies.

The China Model

The driving impetus of the China model is, first and foremost, control over information. This is evidenced by the fact that not only does China control access to Western services at the network level, but also employs huge numbers of censors for the Internet within China, and expects Chinese Internet companies like Tencent or ByteDance to have thousands of censors of their own.

At the same time, the economic benefit of China’s approach for China can not be denied. China is the only country to rival the U.S. for the sheer size and breadth of its Internet companies, thanks to the combination of a massive market and the lack of competition. Moreover, this led to all sorts of innovation, as China’s leapfrog to mobile avoided the baggage of PC-assumptions that still limits many U.S. companies.

That noted, it is fair to wonder just how replicable the China model is. Smaller countries like Iran have instituted similar controls on U.S. tech companies, but without a market like China it is far more difficult to capture the economic upside of the Great Firewall. And, it should be noted, there are a lot of losers with the China model, including Chinese citizens.

The European Model

Europe, through regulations like GDPR and the Copyright Directive, along with last week’s court decision striking down the Privacy Shield framework negotiated by the European Commission and the U.S. International Trade Administration (and a previous decision striking down the Safe Harbor Privacy Principles framework), is splintering off into an Internet of its own.

This Internet, though, feels like the worst of all possible outcomes. On one hand, large U.S. tech companies are winners, at least relative to everyone else: yes, all of the regulatory red tape increases costs (and, for targeted advertising, may reduce revenue), but the impact is far greater on would-be competitors. To put it in allegorical terms, the E.U. is restricting the size of the castle even as it dramatically increases the moat.

E.U. citizens, meanwhile, are likely to see their data increasingly protected from the U.S. government, which is a win; other protections, meanwhile, seem unlikely to be particularly effective or outweigh the general annoyance and loss of relevance that comes from endless permission dialogs and non-targeted content. Moreover, per the previous point, the number of alternatives to established incumbents are likely to decrease, particularly relative to the U.S.

It also seems unlikely that European competitors will fill in the gap. Any company that wishes to achieve scale needs to do so in its home market first, before going abroad, but it seems far more likely that Europe will make the most sense as a secondary market for companies that have done the messy work of iterating on data and achieving product-market fit in markets that are more open to experimentation and impose less of a regulatory burden. Higher costs mean you need a greater expectation of success, which means a proven model, not a speculative one.

Worst of all, at least from the E.U.’s perspective, is that this approach doesn’t really have any upside for European governments. That’s the thing with rule by regulation: without a focus on growth it is harder to create win-win situations.

The Indian Model

The India market has always been a bit unique: while foreign companies have usually been unencumbered when it comes to digital goods, leading to a huge number of users for U.S. companies like Google and Facebook, and Chinese companies like TikTok, India has kept a much tighter leash when it comes to the physical layer of tech. This ranges from strong tariffs on electronics to a ban on foreign direct investment in things like e-commerce. Moreover, India has always been one of the most challenging markets in terms of Internet access and logistics.

At the same time, the Indian market is the most enticing in the world for both U.S. and Chinese tech companies, which have largely saturated their home markets. This has led to a regular number of collisions between foreign tech companies and India regulators, whether it be Facebook’s attempts to introduce Free Basics or WhatsApp payments, increasing restrictions on Amazon and Flipkart’s e-commerce operations, or most recently, the outright banning of TikTok on national security concerns.

Over the last few months, though, a way to square this circle has become apparent to U.S. tech companies in particular, and it portends a fourth Internet: invest in Jio Platforms.

The Jio Bet

Jio, the dominant telecoms network in India, is one of the all-time greatest examples of the power of building, and the outsized returns that come from betting on technology-enabled disruption. I described the economics of the bet by Mukesh Ambani, India’s richest man, in an April Daily Update:
The key to understanding Ambani’s bet is that while all of the incumbent mobile operators in India were, like mobile operators around the world, companies built on voice calls that layered on data, Jio was built to be a data network — specifically 4G — from the beginning.
  • 4G, unlike 2G and 3G, does not support traditional circuit-switched telephony services; voice calls are instead handled the same as any other data.
  • Because everything is data, 4G networks can be built with commodity hardware in a way that 2G and 3G networks cannot.
  • Because Jio was offering a data network, voice calls, which are relatively low bandwidth, were the cheapest services to offer, and capacity was effectively infinite.
To put it another way, Jio was a bet on zero marginal costs — or, at a minimum, drastically lower marginal costs than its competitors. This meant that the optimal strategy was — you know what is coming! — to spend a massive amount of money up front and then seek to serve the greatest number of consumers in order to get maximum leverage on that up-front investment.
That is exactly what Jio did: it spent that $32 billion building a network that covered all of India, launched with an offer for three months of free data and free voice, and once that was up, kept the free voice offering permanently while charging only a couple of bucks for data by the gigabyte. It was the classic Silicon Valley bet: spend money up front, then make it up on volume because of a superior cost structure enabled by the zero-marginal nature of technology.
What makes this story so compelling is the contrast to Facebook’s argument for Free Basics:
The end result is what Zuckerberg said must be done: hundreds of millions of Indians, a huge portion of them from the country’s poorest regions, were connected to the Internet. Unlike Free Basics, though, it was all of the Internet.
That actually undersells just how much better Jio is for Indians than Free Basics would have ever been: Zuckerberg had no plan for upending India’s old mobile order, where operators focused most of their investment on India’s largest cities and competed for the richest parts of society, charging so much that Andreessen could declare, with a straight face, that to not offer Free Basics was “morally wrong.” In that world, India’s poor may have had access to Facebook, but little more, since there would have been no reason for non-Free Basics companies to invest. Instead they not only have the whole Internet but companies from India to China to the United States competing to serve them.
I wrote that Daily Update on the occasion of Facebook investing $5.7 billion for a 10% stake into Jio Platforms; it turned out that was the first of many investments into Jio:
  • In May, Silver Lake Partners invested $790 million for a 1.15% stake, General Atlantic invested $930 million for a 1.34% stake, and KKR invested $1.6 billion for a 2.32% stake.
  • In June, the Mubadala and Adia UAE sovereign funds and Saudi Arabia sovereign fund invested $1.3 billion for a 1.85% stake, $800 million for a 1.16% stake, and $1.6 billion for a 2.32% stake, respectively; Silver Lake Partners invested an additional $640 million to up its stake to 2.08%, TPG invested $640 million for a 0.93% stake, and Catterton invested $270 million for a 0.39% stake. In addition, Intel invested $253 million for a 0.39% stake.
  • In July, Qualcomm invested $97 million for a 0.15% stake, and Google invested $4.7 billion for a 7.7% stake.
With that flurry of fundraising Reliance completely paid off the billions of dollars it had borrowed to build out Jio. What is increasingly clear, though, is that the company’s ambitions extend far beyond being a mere telecoms provider.

Jio’s Vision

Last Wednesday, after announcing Google’s investment in Jio Platforms at Reliance Industries’ Annual General Meeting, Ambani said:

"I would like to first share with you the philosophy that animates Jio’s current and future initiatives. The digital revolution marks the greatest disruptive transformation in the history of mankind, comparable only to the appearance of human beings with intelligence capability on our planet about 50,000 years ago. It is comparable because man is now beginning to infuse almost limitless intelligence into the world around him.

We are today at the initial stages of the evolution of an intelligent planet. Unlike in the past this evolution will proceed with a revolutionary speed. Our world will change more unrecognizably in just eight remaining decades of the 21st century, than today’s world has changed from what it was 20 centuries ago. For the first time in history mankind has an opportunity to solve big problems inherited from the past. This will create a world of prosperity, beauty, and happiness for all. India must lead this change to create a better world. For this all our people and all our enterprises have to be enabled and empowered with the necessary technology infrastructure and capabilities. This is Jio’s purpose. This is Jio’s ambition."

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"Friends, Jio is now the undisputed leader in India with the largest customer base, the largest share of data and voice traffic, and a world-class next-generation broadband network that covers the length and the breadth of our country…Jio’s vision stands on two solid pillars. One is digital connectivity and the other is digital platforms."


In short, Jio is determined to achieve the dream that has long eluded telecom providers in other countries: moving up the stack from fixed-cost infrastructure to high-margin services. Ambani’s vision is comprehensive:

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What gives Jio a chance are three important differences from telecom efforts in other markets:

  • First, Jio has created a huge portion of its addressable market; whereas a Verizon in the U.S., or a NTT DoCoMo in Japan was seeking to offer services on top of a competitive telecom market, Jio is the only option for a huge number of Indians (and for those that have options, Jio is so much cheaper because of its IP-based network that it can afford the extra costs).
  • Second, instead of seeking to usurp companies like Facebook or Google that already have major marketshare in India, Jio is partnering with them.
  • Third, Jio is positioning itself as an Indian champion, and the lynchpin of the Indian model.
Notice how Ambani introduced Jio’s 5G plans:

Jio’s global scale 4G and fiber network is powered by several core software technologies and components that have been developed by the young Jio engineers right here in India. This capability and know-how that Jio has developed positions Jio on the cutting edge of another exciting frontier: 5G.

Today friends, I have great pride in announcing that Jio has designed and developed a complete 5G solution from scratch. This will enable us to launch a world-class 5G service in India using 100% homegrown technology and solution. This made in India 5G solution will be ready for trials as soon as 5G spectrum is available, and can be ready for field deployment next year. And because of Jio’s converged all-IP network architecture we can easily upgrade our 4G network to 5G.

Once Jio’s 5G solution is proven at India-scale, Jio platforms would be well-positioned to be an exporter of 5G solutions to other telecom operators globally as a complete managed service. I dedicate Jio’s 5G solution to our Prime Minister Shri Narendra Modi’s highly motivating vision of ‘Atmanirhbhar Bharat’.


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"Friends, Jio Platform is conceived with this vision of developing original captive intellectual property using which we can demonstrate the transformative power of technology across multiple industry ecosystems, first in India, and then confidently offering these Made-in-India solutions to the rest of the world."

Make no mistake: Jio’s network and its work on 5G, which takes years, was by definition not motivated by a phrase Prime Minister Modi first deployed two months ago. Rather, Ambani’s dedication hinted at the role Jio investors like Facebook and Google are anticipating Jio will play:

  • Jio leverages its investment to become the monopoly provider of telecom services in India.
  • Jio is now a single point of leverage for the government to both exert control over the Internet, and to collect its share of revenue.
  • Jio becomes a reliable interface for foreign companies to invest in the Indian market; yes, they will have to share revenue with Jio, but Jio will smooth over the regulatory and infrastructure hurdles that have stymied so many
What is fascinating about this approach is that the list of winners and losers gets pretty muddled pretty quickly. On one hand, Jio brought the Internet to hundreds of millions of Indians that would never have had access, and the benefits of that investment are only going to increase as Jio’s services and partnerships come on line. On the other hand, locking in a monopolistic player, particularly in the context of a government that has shown a desire for more control over the flow of information is a real downside.

The economic outcomes are just as muddled. Monopolies always have deadweight loss; then again, if an efficient market means that all of the profits flow to Silicon Valley, why should India particularly care about efficiency? In a Jio-mediated market it is U.S. tech companies that make less than they would have, and not only does India collect more taxes along the way, Jio’s vision of being a national champion abroad could be a huge win for India in the long run.

The Indian Counterweight

It is increasingly impossible — or at least irresponsible — to evaluate the tech industry, in particular the largest players, without considering the geopolitical concerns at stake. With that in mind, I welcome Jio’s ambition. Not only is it unreasonable and disrespectful for the U.S. to expect India to be some sort of vassal state technologically speaking, it is actually a good thing to not only have a counterweight to China geographically, but also a counterweight amongst developing countries specifically. Jio is considering problem-spaces that U.S. tech companies are all too often ignorant of, which matters not simply for India but also for much of the rest of the world.

Still, Facebook, Google, Intel, Qualcomm, et al should proceed with their eyes wide-open: they are very much a means to an end for a company and a country that is on its own path. That is not to say these investments are not a good idea — I think they are — but India’s path is perhaps a more populist and nationalistic one than many Americans would prefer. Still, it is less antagonistic to Western liberalism than the Chinese Communist Party, and again, an important counterweight.

The only question left, then, is whither Europe, and frankly, the picture is not pretty:

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What differs Europe’s Internet from the U.S., Chinese, or Indian visions is, well, the lack of vision. Doing nothing more than continually saying “no” leads to a pale imitation of the status quo, where money matters more than innovation.

I wrote a follow-up to this article in this Daily Update.

 
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A very informed commentary :

Industry Voices—Walker : Jio’s ambitions to become 5G vendor are a stretch, but more realistic than Rakuten's

by Matt Walker| Jul 27, 2020 9:54am
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Jio and Rakuten have ambitious 5G plans, but there are pluses and minuses to both, according to MTN Consulting analyst Matt Walker. (Pixabay)

The $214 billion market for telecommunications network infrastructure (telco NI) may have a couple of more suppliers soon, if claims from Mumbai and Tokyo are to be believed. Reliance Jio (now Jio Platforms) and the Rakuten Group, both telcos, have each signaled recently their interest in becoming vendors of mobile NI to telcos abroad.

Rakuten is positioning itself as a systems integrator of sorts with its Rakuten Communications Platform (RCP). Jio claims to aim for more, boasting that it will soon be ready to deploy a homegrown Indian 5G technology platform in its own network and then shop it around the globe. Both approaches are well-timed and funded, and it’s not purely a coincidence that they’re being pushed by these two specific companies: Rakuten’s CTO Tareq Amin served as Jio’s SVP of Technology Development from 2013-18, during the Indian greenfield operator’s crucial network planning and rollout phase.

The conventional wisdom gives Rakuten’s plans more credence, but I’d bet on Jio.

Telcos usually stick to their knitting

Ever since AT&T spun off its equipment arm in 1996 into Lucent Technologies (now part of Nokia), many telcos have been tempted to reverse the process. Most efforts have failed. Telcos prefer to buy from vendors, not actual or potential competitors. However, as networks become more software-centric, cloud-native architectures gain momentum, and open networking allows for disaggregation of the network into piece parts, this may be changing.

Another factor favoring the telco-as-vendor business model is Huawei’s recent reversal in fortunes, and the broader movement across many countries to reduce reliance on Chinese technology. Setting Chinese vendors aside, only a handful of telco NI vendors have global operations and scope across multiple product areas. Ericsson and Nokia dominate in mobile, while Cisco leads in IP.

There are other product segments that matter, and most have multiple vendors competing for telco business. But the telco NI market has consolidated, and that makes life challenging for cash-strapped telcos. Especially if you want to take advantage of the newfound competition emerging with network disaggregation and openness.

Market opportunity for Jio and Rakuten

Rakuten has been talking up its Rakuten Communications Platform approach to building open RAN networks since 2018, and it integrates a large number of vendors to provide the service. Now that Rakuten’s 4G network has launched (in April), and a 5G launch is slated for September, the Japanese company aims to sell its “expertise and technology stack” as a playbook to overseas telcos, with an app store-like interface allowing customization for local requirements.

Rakuten’s 4G network incorporates a long list of different vendors, including two for radios (NEC and Nokia), and the telco owns a stake in open RAN vendor Altiostar. It has plenty of experience integrating different technology into a network, at least one that lacks an installed base, and the company has received lots of praise. For instance the CEO of US-based Dish Network, Charlie Ergen, says Dish learned a lot from Rakuten’s greenfield open RAN build, adding that the Japanese operator is “designing the right kind of network for the future.” Notably, though, Dish is doing its own network design and integration, and has made no public claim of using the RCP.

Jio’s positioning as a vendor is more recent and ambiguous. It launched its own greenfield 4G operation in late 2016, and used aggressive pricing and careful planning to go from zero subscribers to 388 million less than 4 years later (March 2020). Jio is now well ahead of both Airtel and Vodafone Idea, on a subscriber basis. In 2019, Reliance set up Jio Platforms as a separate entity, housing the telecom operator unit (Jio Infocomm), and several other media, movie and music properties. Positioning it for growth, in the last 3 months this division has sold stakes to 14 outside companies worth over $15B (Figure 1).

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Figure 1: Reorganized and newly-funded Jio Platforms: Position in the Reliance Group. Source: MTN Consulting

After months of rumors, Reliance CEO Mukesh Ambani announced in mid-July that Jio Platforms was ready to build its own 5G network, using “homegrown” technology. This was a bit out of the blue considering that Jio’s 4G network was a relatively traditional one, supplied by a single macro RAN vendor, Samsung. Jio owns Radisys and Rancore, which gives it strength in open telecom and virtualization, and network design and testing, respectively. But has Jio secretly developed a 5G solution the world hasn’t heard of ? Probably not. And Ambani has reason to exaggerate, as he clearly wants cheap spectrum and quick approvals for 5G trials while his competition is still figuring out how to rid their networks of Chinese vendors.

Don’t disbelieve the hype

If you see through the hype, I believe what Jio is claiming is similar to Rakuten : Jio is building a playbook for 5G network implementation that leverages individual technology elements from multiple external vendors. This is speculation, but Jio may plan to leverage local services firm Tech Mahindra to oversee systems integration, and state-owned ITI Limited for manufacturing. Both companies are already bidding to supply state-owned BSNL with 4G infrastructure. ITI has limited manufacturing experience with high-end equipment, but Tech Mahindra is a serious player, and in fact runs a 5G-focused “Cloud Innovation” lab in concert with Rakuten in Japan. Tech Mahindra is also an investor in Altiostar, as is Rakuten and Telefonica.

Jio may be starting later than Rakuten, and its plans to date are amorphous, but Jio has a number of advantages that could smoothen its path into the vendor universe :

Network scale and operational experience : Jio began building its network several years ago, has a nationwide fiber network and nearly universal 4G coverage, and it has scaled its operations rapidly; Rakuten launched service on April 8.

Complex multi-vendor network : It’s true that Rakuten also has multi-vendor experience, but Jio has actually scaled this network to reach a population of over 1.3 billion scattered across small towns and mega-cities. While Samsung supplies all the LTE RAN and most of the LTE core elements, Jio also buys from Nokia (FTTx; optical); Ceragon, NEC, Dragonwave, and Ericsson (microwave); Ciena and Tejas (optical); Airspan (LTE RAN WiFi); Arista (WiFi); Cisco (WiFi and routers); and Ruckus (WiFi). Jio also deploys servers from HP, IBM, Genband, and Dell; routers from RAD, Juniper, F5, and Citrix; and, IMS servers from Nokia and HP.

Fixed service delivery experience : Most telcos have a mix of mobile and fixed services in their network. Jio started with mobile, but its JioFiber user base is expanding, giving Jio’s design unit (Rancore) an understanding of the practical issues faced by operators running both fixed and mobile on a common network.

Government policy support : Japan has a well-developed electronics sector with two large, established vendors in the telco NI market. NEC and Fujitsu are more likely to benefit from government help than Rakuten; in fact, NTT – in which the Japanese government still owns a large stake – recently did invest directly in NEC. India, by contrast, has no major player in the telco NI market, allowing Jio to lobby the government without much opposition. Jio’s lining up with local IT services vendors such as Tech Mahindra strengthen its appeal.

Webscale connections : Jio signed a 10-year deal with Microsoft in 2019 to partner in the cloud, supporting the Azure platform with India-focused cloud solutions, and building two data centers for Microsoft. Nothing has been announced, but Jio could expand upon this partnership as it fleshes out its 5G solution, especially in the area of mobile edge computing.

Systems integration capability : One reason Jio’s network got off the ground and scaled so rapidly was the support of its Rancore unit, which does network design, planning, procurement, and testing. External support from Tech Mahindra and/or Wipro/TCS/Infosys could also help Jio build a compelling 5G solution and do custom software development.

Software and virtualization input from Radisys : This small vendor acquired in 2018 has made a strong push towards open RAN and virtualization, and offers a software stack and protocol expertise.

Finally, Jio may be better positioned to push open RAN in developing markets, similar to its home base, where price points must be low and telcos need a lot of hand-holding from suppliers. Rakuten’s base in Japan could be a challenge, even as it shows willingness to set up shop where its customers are. In the end, Rakuten and Jio may both find success as vendors, but probably in a different set of markets.

What happens next ?

If Jio really aims for homegrown 5G, its weak spots are in manufacturing and radios.

The Reliance Group itself certainly has manufacturing capabilities, and a partnership with ITI Limited would enhance these. But ITI suddenly moving into a new, challenging area of manufacturing will have doubters.

Moreover, Jio is missing the radio piece of the puzzle. Let’s say Jio sticks with Samsung, and doesn’t go full open RAN. Jio hasn’t committed either way, even if it is a member of the O-RAN Alliance. Samsung’s baseband supports both LTE and NR 5G with the same hardware, so it would not likely need a swap. But the radios would need an upgrade to Samsung’s Massive MIMO version, at the least. These are not manufactured in India, so it’s hard to pitch them as homegrown. India has been trying to develop its manufacturing base, so perhaps we will see news on this front. Samsung does make handsets in India, at a plant in Noida.

Even with a Samsung manufacturing move, Jio would not have control over the 5G solution and it’s hard to call this is a "Made in India platform". Another possibility is that Jio is on the acquisition hunt, looking for open RAN players to fill the radio void. Altiostar and Mavenir just announced they would work together to develop a portfolio of open RAN-compliant radios designed for the U.S. market, produced by third party OEMs. Altiostar is likely not for sale, given its links to Telefonica and Rakuten, but Mavenir or a smaller option may be available. Short of acquisition, Jio might be content to just do as Altiostar and Mavenir are doing: draw up the specs (using Rancore) and commission a third-party OEM to manufacture.

Note: this column is based upon a forthcoming publication from MTN Consulting, scheduled for early August: Telecom Network Operator Playbook: Jio Platforms Limited. Matt Walker is the founder and Chief Analyst of MTN Consulting, LLC, an independent market research firm. He has over 20 years of experience in telecom industry analysis, consulting and research program management. Based in Asia for most of his career, Matt currently lives in Chandler, Arizona. He can be reached by email at [email protected]. Follow him @mattwtelecom, or LinkedIn


Oh and a new phone :


There is also a Jio phone 3 coming. Not sure when though.
 
Jio to deploy VoNR tech to offer calling service on its 5G network; develops own VoLTE

Jio Platforms, which owns Jio, has already developed its own IMS (IP Multimedia subsystem), which powers its voice over LTE or VoLTE services nationally and handles more than 10 billion minutes of calls on a daily basis.

By Danish Khan, ETTelecom
July 31, 2020, 09:31 IST
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NEW DELHI: Reliance Industries Limited said that its telecom arm, Reliance Jio, will deploy voice over new radio or VoNR tech to offer voice service on its future 5G network in the country.

Jio Platforms, which owns Jio, has already developed its own IMS (IP Multimedia subsystem), which powers its voice over LTE or VoLTE services nationally and handles more than 10 billion minutes of calls on a daily basis.

RIL President Kiran Thomas said that the IMS for the 4G networks is backward compatible and will work with the 5G network.

ETTelecom had in March reported that Jio replaced Nokia and Oracle’s 4G voice technology with its own from its pan-India network. Jio’s own IMS (IP Multimedia Subsystem) solution (vIMS) for VoLTE and VoWiFi is live since October 2019. It was previously using Nokia and Oracle’s IMS and related technology to offer 4G voice service.

“So instead of voice over LTE, we will have voice over new radio or voNR, which is the 5G version, but the products that we built are backward compatible to 4G. So even as we bring in voNR capabilities, VoLTE services will continue to run seamlessly on the same equipment. And obviously we are waiting for spectrum being made available,” he said.

Jio Platforms has created an end-to-end suite of products and platforms, which is being made in India. It covers radio and core components, which is called network functions. The company is developing everything component in-house.

"...this entire intellectual property is owned by Jio Platforms Limited. We have an ability to offer that to our subsidiary which is RJIL to launch 5G services. It is created with a carrier grade quality of service in mind, because we have direct experience of having run these networks, and obviously we are keeping it cloud native, so that not just in our own data centers, but we have to take the solutions outside of our data centers to serve external customers, that transition would be fairly easy," Thomas said.

Jio Platforms is developing our intellectual property and “own-homegrown solutions” that initially will support Reliance Jio and other RIL businesses in retail, financial services, education, healthcare, agriculture, or even manufacturing sectors.

“Jio Platforms plays the role of really providing that digital solutions and digital intellectual property to multiple of our operating companies including Jio.”

Thomas said that Jio Platforms has developed the full “5G stack” internally as opposed to a partner-led approach in the 4G space.

Jio has already replaced many 4G network components with its own home-grown solutions.

In 5G, Thomas said, that Jio is in a position to deploy its own solutions first on Jio’s network in India, and once proven at India scale, the company will take this complete end-to-end solution to other telcos globally.

“…the real fulcrum of what we are trying to achieve is to develop those vertical solutions across these multiple ecosystems… develop it and stabilize it here, mature it here in India, and India we believe provides a very stringent market where we have things like the length and breadth of the country, which is a very large country, we have to be very innovative to create cost-effective solutions and business models,” he added.

 
Reliance Jio-Facebook has right building blocks to create WeChat-like 'Super App': Report

The India internet market share is likely to shift in favour of Reliance Industries Limited (RIL), in part due to Facebook's traffic dominance and this partnership has the right building blocks to create a WeChat-like 'Super App', said Goldman Sachs in a research report.

By IANS
July 30, 2020, 16:35 IST
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The Indian internet market share is likely to shift in favour of Reliance Industries Limited (RIL), in part due to Facebook's traffic dominance and this partnership has the right building blocks to create a WeChat-like 'Super App', said Goldman Sachs in a research report. "We believe the recent Reliance Industries (RIL) and Facebook partnership could increase monetization levels of Indian internet, and garner 25% of all internet Gross Transaction Value (GTV) by FY25," Goldman Sachs said.

"With a user base of 400 million plus in India, and three out of the top five apps in the country (in terms of Daily Active Users and time spent), we believe Facebook, along with its partner RIL, can bring more transacting users (100 million currently) into the fold, especially in e-commerce, the largest internet category," the report said. The key question remains whether a 'Super App', similar to WeChat in China, can emerge in India. "Existing players have so far been largely unsuccessful; however, we believe Facebook and RIL have the right building blocks to create a platform with both high engagement and monetization, but execution remains key," it said.

"In our base case, we expect 25% of all internet GTV to be driven by a potential Super App (including RIL apps) by FY25, while in our blue sky scenario we expect 35% internet GTV and 50%+ of digital payments volumes to be driven by a potential Super App (incl. RIL apps) by FY25. We believe RIL would increasingly try to play a role across the consumer spectrum, including telecom network, devices, operating system and apps," Goldman Sachs said.

The recent RIL and Facebook partnership can potentially increase the monetization levels of Indian internet as consumers in the relatively higher income bands (Urban Mass and Urban Middle) are monetized through transactions - redirecting traffic from social media to e-commerce, O2O, financial services. Consumers in relatively lower income bands are monetized through advertisements - social media, entertainment.

"We believe the partnership between RIL (Reliance Industries) and Facebook announced in April 2020 could change this, and potentially result in creation of a so-called 'Super App', with monetization capabilities across several verticals. We also expect consolidation to be a key theme within India internet over the next five years," the report said.

It expects e-commerce (including grocery) to be the biggest battleground for Indian internet companies, with a potential addressable market of $ 112 billion by FY25 (60% of Indian internet). Within this segment, Amazon, Flipkart/Walmart and RIL to be the key players, with RIL's push initially likely to be in grocery/FMCG, and over time into categories such as apparel and electronics. "We expect 3-4 players to co-exist in India e-commerce, given the size of the vertical," the report said.

"We believe RIL's existing dominance in telecom and offline retail, combined with the online traffic dominance of its partner Facebook, can create the fastest growing internet platform in India," it said.

"Within e-commerce, we forecast RIL online GMV to reach $35 billion in FY25E with a 31 per cent market share, driven by a 51 per cent market share in online groceries. In addition, we believe RIL is well-positioned to monetize verticals such as entertainment, gaming and education, with additional potential upside in a blue sky scenario from O2O businesses and fintech," it said.

The report said the strategic rationale for Facebook's investment in Jio Platforms earlier this year was to begin monetizing WhatsApp's large user base in India via payments/e-commerce. In its 1QCY20 earnings call, Facebook mentioned it will be leveraging its partnership with Jio Mart to enable commerce for small businesses, and also online payments through WhatsApp.

Goldman Sachs estimates e-commerce and mobile payments in India to be a $ 1 trillion market by FY25 (total transaction value, including P2P); WhatsApp and Jio Mart have already launched grocery delivery on their platform, and RIL recently announced expansion of Jio Mart into categories such as fashion, electronics.

Google recently announced the acquisition of a 7.73 per cent stake in Reliance Industries' subsidiary Jio Platforms for $4.5 billion), and RIL mentioned that the focus of the partnership will be on developing low cost 4G/5G smartphones. "We believe this could be a step towards Google's efforts in deepening the penetration of Android operating system in India", the report said.

India has 300 million feature phones (non-Android phones at $10-15 price points vs $50-60 starting price of smartphones), and if Jio and Google were to capture a subset of this segment, Google could get an opportunity to monetize these consumers through advertisements (YouTube, search, etc.), in addition to access to data of consumers in the mid-to-low income level segment in India. "We also believe there is potential for Google and RIL to potentially partner for JioPhone operating systems (currently 100 million plus in number)," it said.

"We believe WhatsApp/FB and Reliance Industries may also enter newer verticals over time to build consumer use cases. While RIL already has a presence across retail, entertainment, and payments (through Jio Payments Bank), we believe for verticals such as travel, food delivery, ride-hailing, etc., RIL/FB could potentially take a partnership approach. This could either be in the form of tie-ups with platforms or through investments in some of the dominant platforms in these verticals, an approach similar to that taken by Tencent in China", Goldman Sachs said.

In fact, during its recent AGM, RIL announced potential integration with Indian startups, including helping them with distribution/marketing and access to capital. RIL/FB can then direct traffic from their potential Super App to these verticals, and monetize it through a share of the commissions, which we believe can be in the range of 2-3 per cent (slightly higher than the 1-2 per cent commissions of WeChat, given a more fragmented market structure in India).

 
The more you dig, the more you find :

It turns out Jio's path to 5G launch isn't as uncertain and improbable as previously thought. Most of the elements of a 5G network has been demonstrated in pieces by Jio subsidiary Radisys. All that is left is getting the system to work as a whole(Lab trials and field trials).

Jio acquired Radisys in 2018 for $70 million, replaced the old CEO with a new one and turned all their attention towards working to make a 5G telecom network.


Radisys and Rancore actively helped Jio automate their existing 4G network, thus making it easier for Jio to transition to a 5G network :


Also Radisys has been working with Qualcomm on 5G deployement too. Recently Qualcomm invested in Jio :


Given Radisys' active participation in O-RAN initiative, it is not hard to imagine Jio's 5G tech to be O-RAN based too. That would be revolutionary as it would drastically cut cost of setting up a network and almost completely cut dependence on outside companies. RIL President Kiran Thomas recently said "Jio Platforms has developed the full '5G stack' internally as opposed to a partner-led approach in the 4G space ". O-RAN is the way to achieve that.


In early 2020, Radisys ran successful trials of Radio Access Network (RAN) slicing, which is a central architectural construct for 5G networks.



Radisys has put their 5G software suite to use and demonstrated 28 GHz NR 5G base station in collaboration with a few other companies in the US :


So all software needed for 5G implementation is ready. Which is a big deal as 4G and 5G networks are software-centric and IP driven.

The real challenge Jio faces is hardware. Jio as of now has significant software, network and hardware design capabilities, but manufacturing abilities aren't there. Look at the Jiofibre routers, designed by Rancore & manufactured mostly in Indonesia.

Due to the GoI's PIL scheme, Indian contract manufacturers have grown in size and capability. Also newer players are stepping into the market. Some manufacturing can definitely be offloaded here. Sterlite Tech (STL) for example, makes the entire gamut of optic fibres industry in India. From raw materials to glass preforms, then optic fibres and optic fibre cables. They also handle cable installation and software integration services for their networks.

For Indian internet speeds to rise optic fibre networks in the country needs to go up significantly. This is where Sterlite comes in. Sterlite has already made a killing in 4G roll out in India & is waiting to do the same for 5G. They have recently won an order from the Navy to make secure private network for them.



STL recently has been signing deals with various companies for development of 5G tech.




VVDN has considerable design and manufacturing capability in India :


Overall, we do seem to have a lot of companies in the 5G tech space in India. Far more than those in 4G. Jio could outsource some tech and manufacturing to these companies in the future. But I still doubt that the entire 5G network will be made in India. At least not the processors. Maybe that's why they are teaming up with Intel and Qualcomm.
 
Mukesh Ambani is coming for India’s phones and wallets

The oil-and-petrochemicals tycoon’s digital services startup requires him to dominate the use of mobile devices, while his retail chain, India’s largest, needs maximum grip on customers’ moneybags.

Bloomberg
July 31, 2020, 11:26 IST
By Andy Mukherjee
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Things nobody should lose in a taxi — their phone and wallet — are what India’s richest man wants to control. And Mukesh Ambani intends to do it in a market of a billion-plus consumers.

The oil-and-petrochemicals tycoon’s digital services startup requires him to dominate the use of mobile devices, while his retail chain, India’s largest, needs maximum grip on customers’ moneybags. Through the fog of the pandemic, the billionaire’s flagship Reliance Industries Ltd. is showing glimpses of this twin-track strategy.

Although padded by a one-time gain from selling 49% of its fuel retail business to BP Plc, net income of $1.8 billion in the June quarter beat all analyst estimates. And this when retail garnered only $145 million in earnings before interest, taxes, depreciation and amortization, a 47% drop from last year. A big jump in digital services helped Reliance cushion the Covid-19 blow, which has hit its petrochemicals and refining cash cows really hard.

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The outlook for energy and materials is gloomy even in the long term. However, the wobble in India’s domestic retail is temporary, a result of the government’s sudden March lockdown. What’s important is that together, the two growth areas of digital and retail brought in earnings in excess of $1 billion last quarter, a sea change from a year earlier, when the older commodities businesses overshadowed profit from the new consumer-focused units two to one.

This remaking of Reliance will be watched keenly both in Silicon Valley and on Wall Street. A $20 billion fundraising spree from marquee investors and tech giants, including Facebook Inc. and Alphabet Inc., has established Ambani’s Jio Platforms Ltd. as the most ambitious digital services play to emerge from India.

From entertainment, education and healthcare to 5G for self-driving cars, Jio hopes to collect tiny sums from roughly 400 million subscribers of its core wireless service. An affordable Android phone, with an operating system built by Alphabet’s Google, will be the tool for reaching the low-income bottom of the Indian customer pyramid. If the digital business can sustain its 30%-plus sales growth at 40%-plus Ebitda margins, a U.S. initial public offering of Jio at a $100-billion-plus valuation is within reach. That’s roughly two-fifths higher than what analysts believe it’s currently worth.

Commerce within Jio, conducted perhaps over Facebook’s WhatsApp payment engine, will be incidental to how customers spend their six hours online. To dominate the more deliberate purchases, Ambani will need to go offline. That’s where his 29 million square feet of retail space — and a virtual network connecting independent neighborhood stores with households — would come in handy. A fifth of Reliance Retail’s revenue comes from food and grocery, which is low-margin but sticky, assuring footfall. It’s also a category with tall barriers to entry, because fresh food requires an intricate farm-to-store supply chain in a country where transportation and storage are perennial challenges.

At this month’s annual general meeting, Ambani promised to induct “global partners and investors” in retail over the next few quarters, hinting at a repeat of the fund-raising party at Jio.

The Reliance empire’s biggest draw to global investors is its alignment with Prime Minister Narendra Modi’s policy priorities. Modi badly needs a success story to repair some of the economic damage caused by the pandemic, but there aren’t many private-sector balance sheets with the heft to give expression to his rhetoric of self-reliance, which has the goal to reduce imports of Chinese-made goods. Most other Indian business groups — including that of Ambani’s younger brother, Anil — are sinking in unsustainable leverage. Reliance, however, has hunkered down after a seven-year, $100-billion spending binge, and cut its net debt to zero.

With the U.S.-China relationship breaking down, the West needs a proof of concept of India as an alternative investment opportunity. Not in five years when the Covid impact has faded, but today. That’s what Ambani is promising to provide by extending his dominance over the phone and wallet.

 
Rakuten gets Indian firms on board for 5G

8 Aug 2020
By SURAJEET DAS GUPTA
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File photo of Rakuten's sign.

Japanese e-commerce giant Rakuten is readying for the big day. In September, it’s planning to launch the world’s first 5G network based on Open Radio Access Network (O-RAN) technology in Tokyo, Nagoya, and Osaka to begin with. For a flawless take off, it has enlisted the help of Indian technology companies. If successful, the disruptive technology — Open Radio Access Network or Open RAN — can pose a direct challenge to dominant players such as Huawei, Nokia, and Ericsson in 5G services.

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File Photo of the Representative director and CTO of Rakuten Mobile Tareq Amin.

Rakuten is looking at both acquisitions and alliances. For instance, it is tying up with Indian companies such as Sterlite Technologies for hardware and HCL, Wipro, and Tech Mahindra for software. It is also open to collaboration with Reliance Industries as part of its effort to build its 5G network in Japan before unleashing it globally.

The company is also in the final stages of acquiring Indore-based Innoeye, which has a research and development (R&D) centre in Virginia and is building software for Rakuten’s wireless network.

Representative director and CTO of Rakuten Mobile Tareq Amin, who’s spearheading the new 5G networks globally, said his firm had outsourced the manufacturing of WiFi platform hardware to Sterlite in a first such step.

To begin with, it is outsourcing WiFi access points to test the validity and quality of the new vendor. For software, Rakuten is in talks with Wipro on a wide range of areas. Rakuten is also engaging with HCL to develop carrier grade WiFi platforms. Amin, who earlier worked in Jio, said the firm was also open to technology collaboration with the Mukesh Ambani led company. “There is a significant cultural compatibility between our firm and Reliance. We believe in innovation and customer engagement. We don’t see Reliance as a competitor but as a possible collaborator in initiatives, ” said Amin.

The areas of collaboration could be open RAN architecture and radio, with a focus on driving the costs of 5G networks down. But Rakuten has not had specific discussions. Among other India initiatives, it has also bought a substantial stake in Altiostar in which Tech Mahindra has a stake. And, most engineers developing the software are based in Altiostar’s R&D centre in Bengaluru.

In fact, Rakuten too has a centre for R&D in Bengaluru. The centre is working on the cloud, data science, and machine learning as well as supporting the other non-telecom businesses of the group.

Amin sees a huge opportunity for Indian companies in the 5G space. “It is a moment of opportunity to become the biggest place for telecom infrastructure. Most of the telecom manufacturing is undertaken in China and Taiwan but India can leapfrog and provide an alternative supply chain for an industry which is desperately looking for alternatives, ” he said.

The firm has had discussions with over 50 global telecom operators who have shown interest in the technology and are keenly watching the launch of Rakuten’s network in Japan. “We would love to test our 5G pods with operators in India and assist in co-building their networks. But currently all our attention is on getting our networks going in Japan, ” said Amin.

He dismissed as “absurd” China’s criticism that the open RAN technology is being supported by the US to take on Huawei and that it would fail, just as CDMA and Wimax of the US had.

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The O-RAN 5G scene is getting clearer. Jio and Rakuten seems to have an interesting relationship. Maybe the plan is to pitch O-RAN based 5G jointly through some sort of Jio-Rakuten joint venture. I remember the British govt. asking help from Japan to build a 5G network. Who knows, UK might as well be the first foreign customer. Tech Mahindra and Rakuten has been working together for some time now :


Tech Mahindra & Sterlite seem to have more capabilities than previously estimated. Tech Mahinda is competing for BSNL 4G tender. Given the interplay between 4G and 5G tech, I wouldn't be surprised if Tech Mahindra is pitching O-RAN 4G to BSNL. O-RAN tech is significantly cheaper than branded tech from the traditional vendors and it allows significant modifications to telecom network which is not possible with branded solutions.

If Tech Mahindra wins the BSNL tender, BSNL along with Jio will be the 2 users of O-RAN in India. That leaves Airtel and Vodafone-Idea, both of which have been bleeding money for a while. Neither of the two have shown any inclinations towards O-RAN, this could land them in serious trouble in the future. Most of the cost of running a telecom network is in acquiring and maintaining the patented tech from traditional vendors. With O-RAN tech, Jio and BSNL wont have this problem. This could lead Jio to put out ultra-cheap 5G data in India while BSNL will probably just be happy with 4G.

Just like ultra-cheap data caused an unprecedented increase in 4G data consumption through out India. Jio with O-RAN could do the same with 5G too. Jio's plan of homegrown 5G sounded absurd at first, it seems a lot was going on behind the scene that was barely known before. With Rakuten stepping in O-RAN with plenty of support from a number of Indian companies, homegrown 5G doesn't sound that absurd anymore.

Can Jio pull this off ? It remains to be seen. Betting against Ambani senior probably isn't a great idea. Just wish GoI bans Chinese vendors from participating in our network and starts auctioning 5G spectrum soon.