Reliance Jio Infocomm Limited relies on provider for 98% fibre

RJIL relies on Jio Digital Fibre Private Limited (JDFPL) for approximately 98% of its optic-fibre network requirements and uses 174,451 towers owned by Summit Digital Infrastructure Limited (SDIL), out of 360,537 total. This concentration is in passive infrastructure that RJIL does not own, under agreements RJIL cannot terminate.

How concentrated is RJIL's passive infrastructure reliance?

RJIL's fibre reliance is concentrated because JDFPL provides approximately 98% of its optic-fibre network requirements as of June 30, 2026. The stated exception is the last-mile fibre network, which RJIL owns. Passive infrastructure includes telecommunication towers, shelters, fibre pairs, ducts and other equipment that supports connectivity offerings.

RJIL also used 360,537 network towers as of June 30, 2026, of which SDIL owned 174,451. The SDIL-owned count equals nearly 48% of the towers RJIL used, based on the disclosed total. The source does not identify the owners of the other 186,086 towers or quantify RJIL's dependence on those providers.

The reliance differs from RJIL's ownership of active network assets. RJIL states that it owns all active infrastructure for its digital connectivity services, including the radio access network, or RAN, base transceiver stations, switches, servers, routers and operations support system and business support system platforms, known as OSS/BSS. The physical tower, fibre and duct assets that support those systems are supplied externally.

Why does RJIL rely on a provider for 98% of fibre?

RJIL uses JDFPL's fibre and ducts, and SDIL's tower infrastructure, through long-term, non-exclusive contracts that require usage and maintenance charges. RJIL signed its master service agreement, or MSA, with SDIL on December 16, 2019, and its fibre and duct use agreement, or FUA, with JDFPL on September 21, 2020. Both agreements have been amended from time to time.

The contracts give RJIL specified commercial protections but do not transfer ownership of passive assets. RJIL is SDIL's anchor tenant and has most favoured nation status on SDIL sites, meaning SDIL cannot offer a third party more favourable service levels than those provided to RJIL under the MSA. JDFPL is subject to a similar restriction, and RJIL automatically receives any more favourable service-level terms that JDFPL elects to give a third party.

RJIL also has a right of first refusal over the use of JDFPL's fibre assets. A right of first refusal gives RJIL the specified opportunity to use the assets before another party in circumstances covered by the FUA. These mechanisms address comparative terms and access rights, but the disclosure does not state that they provide alternative fibre routes or substitute tower capacity if either provider's assets become unavailable.

What restricts RJIL's response to supplier disruption?

RJIL does not have the right to terminate either the SDIL MSA or the JDFPL FUA. RJIL must make certain minimum payments to SDIL and/or JDFPL, which are set off against usage charges for that month or future usage charges under the MSA and FUA. Non-exclusivity therefore does not give RJIL a contractual right to exit either main arrangement.

The contractual remedy for service-level failures is liquidated damages in the form of service credits. Those credits are calculated as a percentage of the site premium or maintenance fees set out in the MSA and FUA. RJIL made no liquidated-damages claim under either agreement in the three months ended June 30, 2026, or in Fiscal 2026, Fiscal 2025 and Fiscal 2024.

RJIL also reported no material instance of non-availability or interruption of passive infrastructure from its service providers in those four disclosed periods. However, RJIL says there is no assurance that SDIL and JDFPL will fulfil their service-level commitments, or that service credits would be adequate or paid in full. The identified outcomes include network outages, relocation of passive infrastructure after landlord disputes, service-quality degradation and customer loss.

How could the supplier concentration affect RJIL's financial results?

A passive-infrastructure disruption could affect a large part of the wider group's operating results because RJIL is its material subsidiary. In Fiscal 2026, RJIL contributed 87.74% of consolidated revenue from operations, 94.88% of consolidated earnings before interest, tax, depreciation and amortisation, or EBITDA, and 93.76% of consolidated profit after tax, or PAT.

For the three months ended June 30, 2026, RJIL contributed 87.34% of consolidated revenue from operations, 93.89% of EBITDA and 92.31% of PAT. The lower revenue share in the three-month period than in Fiscal 2026 contrasts with a higher EBITDA share of 93.89% against 94.88% for the full fiscal. These measures are based on RJIL's standalone financial information in the source.

RJIL's consolidated contribution has declined from Fiscal 2024 in all three reported measures. Revenue from operations fell to 87.74% in Fiscal 2026 from 91.38% in Fiscal 2024, EBITDA to 94.88% from 96.21%, and PAT to 93.76% from 95.53%. The remaining contribution still means that an operational issue at RJIL could affect most of the group's reported EBITDA and PAT while the fibre and tower dependencies continue.

What does RJIL's disruption record show so far?

RJIL states that it has never experienced a complete network outage, although infrastructure and system issues have caused temporary and partial service degradation in limited geographies. In Fiscal 2026, inaccessibility of one server disrupted 5G mobility and JioAirFiber services in Gujarat for approximately two hours. RJIL said it responded with business-continuity measures, software upgrades and alarm-optimisation mechanisms.

In Fiscal 2025, fibre cuts and external accessibility issues interrupted mobility and fixed-broadband services in Kerala for less than one hour. RJIL said it enhanced its redundancy architecture after that event. It also reported two Fiscal 2025 outages caused by power utility system failures, each lasting less than three hours, which were addressed through disaster-recovery measures, repairs and preventive actions.

RJIL further reported disruptions associated with cyclones, heavy rain and cloudbursts during the three months ended June 30, 2026, and Fiscals 2026 and 2025. RJIL characterised these events as not material, but says prolonged disruptions or degraded network quality could reduce its customer base and increase churn. The record shows restoration and redundancy actions, rather than removal of dependency on external passive-infrastructure providers.

Conclusion

RJIL's network model separates ownership of active telecom equipment from dependence on external passive assets. JDFPL's approximately 98% share of fibre requirements and SDIL's 174,451 towers create concentration in two provider relationships, while RJIL's contribution of 94.88% of Fiscal 2026 consolidated EBITDA gives operational disruption wider financial relevance.

The disclosed point to watch is service-level performance under the MSA and FUA, because RJIL cannot terminate either agreement and can instead seek service credits for failures. RJIL disclosed no material passive-infrastructure interruption and no related liquidated-damages claim through June 30, 2026, but identified outages, landlord-led relocations and service deterioration as continuing risks.