Reliance Jio’s Rs 500 4G VoLTE Phone May Disrupt The Market Soon | AIB
Reliance Jio is expected to launch its much-awaited 4G VoLTE feature phone within this month at the Reliance Industries annual general meeting on July 21st, the phone cost as low as Rs 500, a move which could lead to another wave of disruption in the telecom market.
It would follow with the new aggressive tariff plans over the next couple of days, as its 84-day Dhan Dhana Dhan offer is ending soon which was announced on April 11.
Under ‘Dhan Dhana Dhan offer,’ Jio has offered a three-month subscription for 4G data, Voice over VoLTE on a recharge of Rs 309. Despite several offers and schemes, Jio’s customer acquisition has declined in three consecutive months that’s why the company is pushing its cost effective 4G feature phones to markets soon to grow its base.
Jio is expected to value its 4G feature phone “at a trifling Rs 500 to lure 2G subscribers to switch to 4G directly”. Which implies “Jio subsidizing each handset by as much as $10-15 (Rs 650-975)”, Rajiv Sharma, HSBC director, and telecoms analyst said in a note seen by ET.
Jio looks to be ready to flood the market with its 4G devices, having placed orders for 18-20 million of the 4G VoLTE feature phones with some key Chinese original device manufacturers (ODMs). This time Jio is directly targeting urban and rural low-end 2G subscribers, this move will strengthen its customer base.