Jio’s Internet Speed Can Slow Down In Coming Days: Find Out Why?
RCom's legal and financial issues may bring bad news for Jio users.
Due to some legal issues related to Reliance Communication, Internet speed under Jio’s network can face some disruptions in coming days.
Why is this happening? Keep reading to find out more…
Jio’s Internet Speed Will Be Reduced?
In the premium 800 MHz spectrum bank, Mukesh Ambani led Reliance Jio is dependent on Anil Ambani led Reliance Communications.
Jio will need to create contiguous spectrum blocks of five units in the premium 800 MHz spectrum band, and if reports are to be believed, Jio won’t be able to do that.
This will lead to slower Internet speeds for Jio users.
800 MHz is the bare minimum spectrum required for high speed 4G LTE network.
Which States Will Be Impacted?
Circles such as West Bengal, Delhi, Maharashtra, Andhra Pradesh, Kerala, Tamil Nadu, Karnataka are the primary circles where users can experience slower Internet from Jio.
In these states, Jio holds 3.8 units of 4G airwaves in the 800 MHz spectrum. And to access them, they are fully dependent on Reliance Communications.
What Is The Main Issue Here?
Spectrum trading deal between Reliance Jio and Reliance Communications was inked in 2017, which allowed Jio to own 122.4 units of 4G airwaves, which includes the crucial 800 MHz spectrum and 4G LTE airwaves.
This was a win-win situation, as it allowed RCom to clear Rs 18,000 crore of debt out of Rs 46,000 crore debt. And Jio would have received the crucial spectrum and provide better, faster network in Mumbai, Gujarat, Madhya Pradesh, Himachal Pradesh, Bihar, Orissa, Assam and Northeast.
However, in May this year, The National Company Law Apellate Tribunal (NCLAT) stopped RCom’s insolvency proceeding due to the issue with Erricson’s payment.
This hold-up of the insolvency process has jeopardized the spectrum deal between RCom and Reliance Jio, and posed this problem.
An unnamed industry expert said, “If RCom gets dragged into insolvency proceedings, and even worse, goes into liquidation, all its spectrum assets would get taken over under the Insolvency Bankruptcy Code (IBC), 2016, to be auctioned to pay off creditors, which is a complicated and long-drawn process.”
What Will Jio Do Now?
Jio is able to access RCom’s spectrum right now, under their deal to share spectrum across 21 states in India (except Jammu & Kashmir)
In case the insolvency process gets complicated, then Jio will be forced to stop accessing their spectrum.
In that case, Jio will use their backup of 1800 and 2300 MHz bands, which will not support high-quality 4G airwaves, leading to slower Internet speed.
Another unnamed Industry executive said, “The overall quality of Jio’s LTE coverage is bound to decline in markets like Mumbai, Gujarat, MP and the eastern circles since halving of available 800 MHz spectrum will automatically reduce the network capacity,”
If this happens, then Airtel and Vodafone-Idea will get an excellent chance to make a comeback and lure their loyal customers back into their camp.
Airtel and Ericsson have recently tested 500 Mbps Internet speed using hidden, untapped 4G spectrum.
We will keep you updated, as more details come in.