Ambani's Jio in talks with Comcast and Charter on broadband tech licensing

what happened

Citing two people familiar with the matter, Moody's reports that Jio Platforms, controlled by Reliance Industries, has held talks with Comcast, Charter Communications and several other companies. The discussions concern licensing Jio's wireless broadband technology in exchange for possible equity stakes in those businesses.

Talks with South Africa's MTN Group broke down because the sides could not agree on valuation and some licensing terms. According to the sources, no timetable exists for a deal with any of the parties. Comcast and Charter declined to comment, Jio did not reply to requests, and MTN said it does not comment on market speculation. Jio listed in Mumbai last week after a record $3.2 billion IPO and says it targets 10 to 15 partners globally.

The system runs on free, unlicensed Wi-Fi frequencies, with transmitters on towers or rooftops beaming signals to receivers on buildings, so no cable is needed to each home.

why it matters

For US cable operators losing home internet customers to fixed wireless and fiber, a partner like this could open a foothold in the market and lower costs, since they would not have to buy spectrum. Neil Shah of Counterpoint Research called the technology 'very attractive' for them. Still, S&P Global Market Intelligence put cable at 62% of US residential broadband connections at the end of 2024, so any deal remains uncertain.

market impact

Comcast, Charter: possible cheaper broadband route, but no deal or timetable yet, so limited near-term market effect

tags

instruments