Jio Platforms Ltd., the telecommunications arm of Mukesh Ambani's Reliance Industries, is reportedly in talks with major US cable operators Comcast and Charter Communications. The discussions center on licensing Jio's proprietary wireless broadband technology in exchange for potential equity stakes in these businesses, according to recent reports.
Jio Platforms Pursues International Expansion
The reported negotiations underscore Jio's long-signaled strategy to expand its innovative broadband technology internationally. Reliance Industries has previously described Jio's system as a “global first,” designed to deliver internet services more cost-effectively than traditional cable networks or mobile-based solutions by utilizing free, unlicensed Wi-Fi frequencies.
Details of the Reported Discussions
Sources familiar with the matter indicate that the talks are ongoing, though no timetable has been set for reaching a definitive agreement with any party. Spokespeople for Comcast and Charter Communications have declined to comment on the reports, and Jio Platforms has not yet responded to inquiries regarding the discussions.
Q2 Performance and Analyst Outlook
These reports emerge shortly after Jio Platforms announced its Q2 financial results, which showed in-line revenue growth. The company reported a 1.5 percent sequential increase in Average Revenue Per User (ARPU) and added 9 million new subscribers during the quarter. Analysts from MOFSL and Dolat Capital have since raised their target prices for Jio Platforms, maintaining 'Buy' and 'Accumulate' ratings respectively, citing the company's robust performance and digital services scale-up.
Previous Negotiations with MTN Group
Prior to the reported discussions with Comcast and Charter, Jio Platforms also engaged in talks with South Africa's MTN Group. However, these negotiations reportedly broke down due to disagreements over valuation and specific licensing terms, according to sources.