Reports are coming in, which indicates a massive disruption in the 4G handset market in India; and Reliance Jio is the name which will cause this disruption.
If reports are to be believed, then Jio will soon launch Rs 500 worth 4G VoLTE handsets, which will be targeted for those, who are using feature phones as of now. Such cheap VoLTE handsets will enable direct migration of these users from feature to 4G, and possibly unleash a new wave of 4G Internet users in India.
An unnamed senior executive from a leading telecom company said, “This launch can create the next wave of disruption in the telecom market. Not just us, but the existing players could surely lose a chunk of their low-end voice customers — most of whom are pre-paid — once this 4G feature phone is launched.”
And, reports also indicate that the announcement will most probably be made on July 21st when Reliance Industries’ Annual General Meeting will be held, and launch would be made, most probably, on August 15th, which is India’s Independence Day.
Perfect timing, it seems.
Jio’s Next Disruption: Cheap 4G VoLTE Handsets
Brokerage firm HSBC has predicted that the price of cheap 4G VoLTE enabled handsets from Reliance Jio will be Rs 500, and, would be marketed aggressively to those mobile users who are still using feature phones.
This seems logical as well because a previous report predicted 50% of all mobile handset sales in 2016 to be feature phones; which will be reduced to the range of 35-40% in 2017. This is certainly a large, meaty chunk of users whom Jio wants to target.
As per Rajiv Sharma, HSBC director and telecoms analyst, Jio will subsidise $10-15 (Rs 650-975) per handset, as it aims to sell them “at a paltry Rs 500 (sub-$8) to lure 2G subscribers to directly switch to 4G”,
We have already reported that Jio has ordered close to 20 million 4G VoLTE enabled handsets from Chinese companies such as Zhejiang Techain Electronics Technology Co., Shenzhen CHINO-E Communication Co, Crave and Megaphone.
Earlier, it was believed that Jio will sell these handsets at Rs 999, but now, the price has been speculated to be Rs 500.
Cheap Handset Combined With Cheap Data Plans
Not only cheap handsets, but Jio will also introduce special cheap plans for the new wave of users.
As per reports coming in, Jio will introduce cheap Rs 150 per month plan, bundled with these handsets, which shall be introduced at Rs 80/90 per month in the initial phase.
HSBC has said in their note: “Given Jio’s $29 billion investment so far in the telecom venture, we don’t think the new 4G entrant would have any hesitation in doing so (subsidising)..”
We will keep you updated, as we receive more information.