Jio set to launch Rs 500 4G phone on July 21, eyes growth in rural India

Jio set to launch Rs 500 4G phone on July 21, eyes growth in rural India
Indiatoday 12 Jul. 2017 12:07
India Today
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Reliance Jio is set to make some big announcements at its annual general meeting (AGM) on July 21 in Mumbai. Though the company has not specified anything in particular, its executives talk of some big announcements that are going to have the monumental effects on the phone industry in India. Among the announcements, the most important one is expected to be the launch of a cheap 4G feature phone, which is rumoured to be priced as low as Rs 500.
Though even if the price is not this cheap, there is every indication that the Jio Feature phone will be the cheapest 4G in the market by all accounts. Along with the Jio 4G feature phone, the company is also expected to announce some new "value-for-money" tariff plans for Jio users.
The idea within Jio is that even though Jio has acquired over 100 million subscribers, it ought to now look at the next wave of growth. And that growth, the company believes, is going to come from people who currently use feature phones with 2G. The company hopes to offer these people a way to upgrade their experience to 4G and it hopes to do so by enticing them with a 4G phone that is affordable compared to the ones that are already available in the market.
There have been rumours in the past also that the Mukesh-Ambani led company could soon launch a 4G VoLTE supporting feature phone. According to an ET report that cites the HSBC report, the phone could cost Rs 500 and there are also speculations that the company is in talks with Chinese handset makers like the Techchain and Uniscope for the phone's manufacturing.
According to a note from Rajiv Sharma, HSBC director, the new Jio device could be priced "at a paltry Rs 500 (sub-$8) to lure 2G subscribers to directly switch to 4G. (this means) Jio (is) subsidising each handset by as much as $10-15 (Rs 650-975)."
A Rs 500 feature phone with VoLTE support when launched could potential change the entire telecom industry in India. There are many users who do not have the access to 4G network and are on 2G/3G connections which have a poor coverage. Jio has over 100 million subscribers in India presently. Offering 4G connections at such minimal price will help company gain more traction and increase its consumer base.
The cheap Jio phone can also help the company take on Airtel and others, which have seen faster growth than Jio in the last few months. Although Jio grew at a very rapid pace when it was free, in the last few months the pace at which it is adding subscribers has slowed down considerably. This is also probably the reason why the company on Tuesday overhauled all its existing plans for both post-paid and prepaid users. It has extended the validity for all recharges above Rs 309. It is now offering more data and longer validity at same prices.