Reliance Jio isn’t only setting new trends but actually changing the whole game with its 4G-LTE handsets
WHAT COULD BE THE biggest impact of Reliance Jio’s 4G -LTE feature phones? If the handset quality and connectivity are good, Jio may act as a catalyst in phasing out 2G from India. Last month, the company announced the launch of a new phone that offers three-year refundable security deposit of Rs 1,500 and unlimited voice and data at Rs 153 per month. This will have a major impact on the 2G service market that is about Rs 60,000 crore per annum.
Until now, Reliance Jio couldn’t enter this market as it didn’t have a device for this price-sensitive market. The market was ruled by incumbent operators who have largely 2G networks, even though they are shifting to 4G services.
When Reliance Jio launched 4G in September last year, 3G started phasing out from India. The supply of new 3G handsets has, in fact, largely stopped. So when existing 3G smartphone users want to buy new phones, they shift to 4G as 3G handsets are not available in the market. Generally, users are not much bothered about the technology (3G or 4G), they want good speed at low prices which they get from 4G.
It could be the same story for 2G. Reliance Jio’s LTE Feature phones are available for Rs 1,500 (a refundable amount), and they come with unlimited voice and data services. With that offer, Jio has broken the entry barrier. Its monthly tariff is also very attractive.
There are about 50 crore feature phone users in the country and about 20 crore users pay a bill of more than Rs 150 per month. This is the segment that will be the first to jump to Reliance Jio’s offer. “Unlike smartphone customers, feature phone users are not brand conscious. They have no loyalty to a service provider or a handset brand. They look for value for money,” says a former CEO of a large telecom service provider.
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Is Leadership Without Hierarchies Possible?
LEADERSHIP IN THE current era is more challenging than ever before.
The Rise and Evolution of Coffee Culture in India
AS A BANGALORE native, South Indian filter ‘Kaapi’ has always been a significant part of our tradition.
The Daily Ground Goes Desi
Success in Tier-2 and Tier-3 cities hinges on several key factors, with one of the most important being the ability to offer high-quality products at an accessible price point
Cracking The Indian Code
TARUN JAIN, CEO of Tim Hortons India believes in creating an experience at cafes by blending global quality, local flavours and affordability
Making Coffee the New Chai in India
Affordable, great-tasting coffee made fast-abCoffee is reshaping how India drinks coffee
Scripting A New Era Of Coffee In India
From a bootstrapped startup to international expansion, NOTHING BEFORE COFFEE is brewing its way to the top by challenging the giants of the coffee industry with innovation, personalisation, and sustainability
"Driven By A Younger Demographic, Coffee Culture Is On The Upswing"
SUNIL D'SOUZA, Managing Director and CEO of Tata Consumer Products, discusses the company's strategic growth in India's booming coffee market, focusing on premiumisation, innovation, and expanding consumer experiences both at home and in cafés, in this exclusive conversation with BW Businessworld's Tarannum Manjul
Fresh Brew, Big Ambitions
From startups to stores, Beanly's Samayesh Khanna and Rahul Jain elevate India's coffee culture by making freshly brewed coffee a daily delight
"On Track To Become India's Top Café Chain"
In an exclusive interview, RAJAT AGRAWAL, CEO of Barista Coffee, shared insights on the company's current market position, expansion strategies, and its response to growing competition
"Ensuring A Seamless Coffee Experience Outside The Cafe Is The Next Big Thing To Watch Out For"
In an exclusive conversation with BW Businessworld's Resham Suhail, Third Wave Coffee CEO RAJAT LUTHRA and its Co-founder AYUSH BATHWAL delve on how they are navigating the competitive landscape, going beyond retail and tapping changing consumer preferences