Reliance Jio, India's largest telecom operator, is in talks with two of the biggest broadband providers in the United States about licensing its wireless technology, according to a Reuters report published on Wednesday, November 4. The discussions could mark one of the most significant attempts yet by an Indian telecom company to export its home-grown technology to developed markets.
Jio is in discussions with Comcast and Charter Communications to license its unlicensed band radio (UBR) technology. Rather than simply charging licensing fees, Jio is reportedly seeking potential equity stakes in return. That structure would give the Indian company a long-term financial interest in the success of the technology in the US market.
The talks are at an early stage, and there is no guarantee that they will result in agreements. Neither Jio nor the US companies have publicly confirmed the details.
What is UBR technology?
Jio's UBR technology uses unlicensed radio spectrum to deliver high-speed wireless broadband. Unlicensed spectrum, the same type used by Wi-Fi, does not require operators to buy expensive licences from governments. Any company can use it within certain technical rules.
Jio developed the technology to help expand its broadband services in India, where laying fibre to every home and building is expensive and slow. Wireless links can connect homes and businesses more quickly and cheaply, particularly in dense urban areas and in places where physical infrastructure is difficult to build.
The technology is part of a wider set of telecom systems that Jio has developed in-house, including its own 5G core network and radio equipment. Building its own technology has allowed Jio to reduce its reliance on foreign equipment vendors and lower its costs.
Why US cable companies are interested
Comcast and Charter are the two largest cable broadband providers in the United States. Comcast has about 28.3 million broadband customers and Charter about 29.4 million.
Both companies face growing competition from fixed wireless access services offered by mobile operators, as well as from fibre providers. Wireless broadband has been one of the fastest-growing parts of the US internet market, as mobile carriers use their 5G networks to offer home internet.
Licensing Jio's technology could give the cable companies new ways to extend their networks, reach customers more cheaply in areas where laying cable is uneconomical, or add capacity to existing services. Using unlicensed spectrum could also help them avoid the cost of buying licensed spectrum.
Jio's global ambitions
The talks with Comcast and Charter are part of a broader plan by Jio to take its technology to international markets. According to the Reuters report, Jio is aiming to sign up 10 to 15 global partners.
Not all of its efforts have succeeded. Jio's talks with MTN, Africa's largest mobile operator, reportedly broke down over differences on valuation. That shows the difficulty of agreeing terms when technology licensing is tied to equity stakes, as both sides must agree on the value of the technology and the business it is being applied to.
Jio Platforms, the digital and telecom arm of Mukesh Ambani's Reliance Industries, has recently listed on the stock market. Its ability to show that its technology can generate revenue and value outside India could be important for its valuation and for investor confidence in its long-term strategy.
An analyst's view
Industry analysts see the potential talks as a sign of Jio's ambition to become a technology provider as well as a telecom operator. Neil Shah of Counterpoint Research has noted that Jio's push to monetise its technology abroad reflects the scale of its investment in in-house development and the competitive advantages that technology has given it in India.
Jio's model in India has been built on extremely low costs, which it achieved partly by developing its own technology and by operating at enormous scale. If that technology can be adapted to other markets, it could become a new source of revenue and influence for the company.
Why an equity-for-technology model
Seeking equity stakes in exchange for technology is an unusual approach. Most telecom equipment and software vendors sell or license their products for fees. By taking equity, Jio would share in the upside if its partners grow, but it would also take on more risk.
The approach may reflect Jio's confidence in the value of its technology, and its interest in building long-term relationships with partners rather than one-off sales. It may also be a way to make its technology more attractive to partners, by reducing upfront costs in exchange for a share of future value.
However, equity-based deals are more complicated to negotiate. They require agreement on valuation, governance and the rights each party will have. The breakdown of the MTN talks over valuation shows how these issues can derail discussions.
Regulatory and geopolitical factors
Any agreement between Jio and US cable companies would likely face scrutiny. Telecom infrastructure is regarded as sensitive in the United States, and regulators have closely examined foreign technology in American networks in recent years, particularly equipment from Chinese vendors.
India and the US have close strategic and technology ties, which could make an Indian technology partnership more acceptable to US authorities than one with suppliers from some other countries. Still, foreign equity stakes in American telecom companies, even small ones, could attract regulatory attention.
The structure of any deal, including the size of any equity stake and the extent of Jio's involvement in network operations, would affect how regulators view it.
A test for Indian tech exports
For India, a successful deal with major US companies would be a symbolic milestone. Indian companies are major exporters of IT services and software, but exports of core telecom technology to developed markets have been rare.
Jio's in-house technology is a product of India's push for self-reliance in critical technologies. Successful deployment by American companies would help validate the quality and competitiveness of Indian-developed telecom systems.
For the Indian diaspora working in telecommunications and technology in the US, it would also mark a notable step in the growing two-way technology relationship between the two countries. Many of the engineers who have built telecom systems around the world are of Indian origin, and Jio's technology push builds on that talent base.
What comes next
The outcome of the talks remains uncertain. Even if Comcast and Charter decide to work with Jio, it could take time to negotiate terms, secure regulatory approvals and deploy the technology.
Investors will watch for any official announcement. For Jio Platforms, signing deals with globally recognised partners would strengthen its case as a technology company with international reach, rather than purely an Indian telecom operator.
For now, the talks highlight Jio's ambition to turn the technology it built for India into a global business, and the interest of major international players in what that technology can offer.
