Reliance Jio To Launch LYF 4G Smartphones Before Diwali; Rs 93,000cr Already Invested For Mega Launch
Mukesh Ambani led Reliance Jio wants to make Diwali-2015 a memorable occasion for all Internet fans in India. As per fresh reports emerging, Reliance Jio is determined to launch their 4G services packed with a smartphone costing just Rs 4000. They are naming this 4G enabled smartphone as LYF brand.
Reportedly, Reliance Jio has already invested Rs 93,000 crore into their LYF brand, to make it one of the massive launches Indian telecom has ever seen. Around 2.5 lakh km of network expansion has already been accomplished, as thousands of crores have been invested into their 4G services.
Reliance Jio president for devices Sunil Dutt also said that they have made arrangements with 1200 distributors all across the nation, for smooth logistics and distribution of their low cost 4G handsets.
The figure of Rs 93,000 crore investments into their 4G services (including handset and network infrastructure) has been confirmed by Reliance Group deputy CFO V Srikanth. He added that no more capital infusion is now required, as Reliance Jio is now “well capitalized”.
Reliance Jio’s Comprehensive Strategy: Handset + Network
It seems that Reliance Jio is aiming to dominate both the handset and network domain when it comes to 4G services in India. Unlike Airtel, which are mainly focused on delivering high speed Internet via 4G, Reliance Jio is targeting hardware as well.
As we had shared earlier, Reliance Jio has partnered with atleast 5 OEMs (Original Equipment Manufacturer) to white-label their own brand on 4G enabled handsets; which would be powered with their own 4G services.
Anshuman Thakur, head of business strategy development at Reliance Jio, has confirmed this development, as he said, “Reliance Retail will soon launch its own brand of 4G LTE smartphones under the brand LYF. The brand built on the premise of unmatched user experience will offer high-performance handsets that deliver a true 4G experience comparable to the best in the world,”
We had earlier speculated that Reliance Jio has teamed up with Gionee, Huawei and Xiaomi for acquiring 4G enabled handsets, which can enable their customers to make Internet-based calls using LTE (VoLTE) protocols, voice over Wi-Fi (VoWi-FI); equipped with high definition voice and high definition quality video calling on Jio network.
Among all telecom players, Reliance Jio holds maximum number of liberalized spectrum, as it owns total of 751.1 MHz spectrum across 800 MHz, 1800 MHz and 2300 MHz bands. They have even joined forces with RCom, for getting hold of 850 MHz spectrum across 7 circles, which effectively gives them command of 35% of overall market.
There are around 10,000 testers who are checking 4G services before the launch; and as per reports, they will be launching economical plans costing Rs 350-500 per month for 4G data usage. This, combined with 4G handsets costing Rs 4000 makes them a formidable force in this niche.
Considering the homework and extensive expansion plan of Reliance Jio, Airtel will really need to pull up their socks if they want to be a competition for 4G services.
We will keep you updated as more details come in.