Reliance Jio’s 500 Rupees 4G Phone; What to expect?

Mukesh Ambani led Reliance Jio is set to launch its first 4G phone in order to boost its reach. Earlier Jio faced problem in expanding as many Indian users didn’t have 4G phone. This step is sure to create disruption in Telecom Sector.

A Strategy to boost up Subscribers

The initial days of Reliance Jio have seen immense popularity and growth but in recent times the figure has slumped a bit. As of April, 2017, there were 112 million Jio subscribers and the difficulty that the company is facing in extending its service to other people is the lack of 4G smartphone users. In order to solve this hurdle, the company has reportedly placed an order for manufacturing 18-20 million 4G smartphones. Reliance has placed this order with four Chinese companies namely Zhenjiang Techain Electronics Technology Co, Crave, Shenzhen CHINO-E Communication Co and Megaphone.

The price of the smartphone is surprisingly very low. One set may cost up to 500 rupees which is certainly very low. Earlier plans were to launch between 999 to 1500 rupees but that has changed. Reliance will be subsidizing the price of the smartphones to reach tail users. The shipments may arrive soon by the end of this month or by the next month. It is not clear whether the phones will be launched as single product or will come as a combo. Many companies have collaborated to sell phones and network facility together to bring down the prices of the phones.

A Step that will boost up Digitalization

India reportedly has 300 million smartphone users and nearly 450 million internet users. The Prime Minister has emphasized on digital India by using smartphones and internet for different uses. This step by Reliance Jio will boost the number of smartphone users as well as internet users. Reliance is subsidizing the price of the smartphone by two-third in order to facilitate its user. The launching of the product will definitely attract huge customer base as the earlier launch of Jio has witnessed. This announcement will also cause major disruption in the market of both telecom companies as well as mobile manufacturing companies.