Reliance Jio to Turn around the Indian Market Again; This Time with Low Priced Featured Phones

Sep-2020 | Semiconductor

No one needs to be explained about Reliance Jio’s effect in the Indian telecom market. Its strategies have shattered the ranking of the leading telecom players on the global platform. Reliance has always been a game changer for the market, right from the early days where it had rolled out free incoming service on purchase of Reliance phone that was really low in cost. However, this was the scenario where we had to pay for both incoming and outgoing calls.

Same goes with Reliance Jio introduction, which becomes a historic telecom move. After these back-to-back strategies, how can we expect Mukesh Ambani-owned Reliance to stay calm? No, the telecom giant isn’t satisfied with what it had achieved. Reliance Jio is expected to soon launch a rumored 4G VoLTE feature phone and it will be introduced with a price tag of Rs 500. Shocking! Right? This move by Reliance Jio can be seen as another wave of disruption in the telecom sector.

The company is expected to price the 4G-enabled feature phone at Rs 500 to attract the 2G customers and switch them to 4G. Jio subsided each handset by Rs 650–975, HSBC Director and telecom analyst, Rajiv Sharma stated in a note.

It is anticipated that the combination of Jio’s mind blowing offers along with this upcoming 4G VoLTE feature phone will boost the user count and spur the market drastically.

However, after an affluent start, Jio’s pace of growth has been restrained in terms of customer acquisition, expecting the lack of affordable 4G handsets in the market. Thus, introducing this feature with 4G VoLTE in an affordable cost will probably enable the operator to onboard millions of 2G feature-phone users who wish to switch to smartphones but owing to affordability factor they drop to adopt the advanced technology. As per the figures, there are 112.55 Million Jio subscribers as of April 2017.

Reliance Jio seems to be ready to flood Indian market with its 4G devices as it has already placed orders for 18–20 Million handsets to some of the Chinese mobile phone manufacturers such as Shenzhen CHINO-E Communication, Crave and Megaphone, and Zhejiang Techain Electronics Technology Co.