Qualcomm has committed to invest INR7.3 billion ($97.1 million) in India’s Jio Platforms with the aim of supporting the Indian firm in the future rollout of 5G services in the Indian market.
Qualcomm Ventures’ investment will translate into 0.15% equity stake in Jio Platforms.
Jio Platforms, a majority-owned subsidiary of Reliance Industries, is a next-generation technology platform focused on providing digital services across India, with more than 388 million subscribers.
Mukesh Ambani, chairman and managing director of Reliance Industries said, “I am delighted to welcome Qualcomm Ventures as an investor in Jio Platforms. Qualcomm has been a valued partner for several years and we have a shared vision of connecting everything by building a robust and secure wireless and digital network and extending the benefits of digital connectivity to everyone in India. As a world leader in wireless technologies, Qualcomm offers deep technology knowhow and insights that will help us deliver on our 5G vision and the digital transformation of India for both people and enterprises.”
“With our shared goal of extending the benefits of digital connectivity to everyone and everything, we anticipate Jio Platforms will deliver a new set of services and experiences to Indian consumers,” said Steve Mollenkopf, CEO of Qualcomm. “With unmatched speeds and emerging use cases, 5G is expected to transform every industry in the coming years. Jio Platforms has led the digital revolution in India through its extensive digital and technological capabilities. As an enabler and investor with a longstanding presence in India, we look forward to playing a role in Jio’s vision to further revolutionize India’s digital economy.”
Firms including Facebook, Silver Lake, Vista Equity Partners,KKR, General Atlantic and Intel Capital are some of the companies that have backed Jio Platforms during the COVID-19 pandemic. Jio Platforms has sold ownership stakes totaling 25.24% of the firm during this period.
According to previous reports, India expects to award spectrum for the provision of 5G next year. The auction will include the sale of almost 8300 megahertz of airwaves, including 5G spectrum in the 3.3-3.6 GHz band and 4G spectrum in the 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz and 2500 MHz bands.
The auction was initially expected to take place in 2020 but the government decided to postpone the process due to the poor financial health of the industry and worries the reserve price was too high to attract interest.
A recent Finance Ministry recommendation suggested reducing the 5G reserve price of INR4.9 billion ($65.1 million) per MHz to make it more affordable. All Indian service providers, including Reliance Jio, Airtel and Vodafone Idea, have asked the government to lower the base price for the spectrum, and especially that of 5G. Airtel said it will not participate in the auction at the current reserve prices.
