Eyeing on data packs, JioPhones bear with low cost basic 4G phone
Posted on: 27/Sep/2017 12:57:48 PM
Reliance Jio is footing at least 40 percent of the cost of its basic 4G phone, say reliable sources. The company bets to recover investments by attracting millions of new customers.
This week, the JioPhone is getting rolled out for a refundable deposit of Rs 1,500. According to sources, the total cost to assemble the set will be approximately Rs 2,500. So, for every 10 million JioPhones, Jio will have to bear with $150 million extra.
According to sources, Jio aims at absorbing 250 million to 300 million users in another 2 years period. Reliance Industries, however did not respond for requests for comments in this regard.
The scale of outlay indicates the utmost level of ambition of Reliance that targets audience of over 500 million all of whom are unable to afford for smartphones in India.
This Voice Over LTE network from Jio will be compatible only with 4G enabled devices, and will remain inaccessible in spite of being at subsidized rates. The JioPhone will come with an open internet to aid the less affluent Indian population for the very first time.
This attempt by Reliance is a bold move. Data is going to be the key driver for them here.
According to analysts, with most of the Indian feature phone users, the average revenue per user is Rs 50 or even less. With the Rs 153 monthly plan from Jio, the ARPU of pre-paid Jio users will probably increase, say sources.
With the launch of Jio last year extending free voice calls and slashed rate data packs, Mukesh Ambani, the richest Indian has grabbed 128 million whopping customer base.
These JioPhones are getting manufactured in China now. However, Reliance will probably tap Foxconn and Flextronics both of which have facilities in India for assembling the phone within the country, say sources.
