By Advait Moharir
Reliance Jio is reportedly planning to launch a new feature smartphone to be priced at Rs. 999 enabled with 4G VoLTE. With other features such as Jio Chat and Jio Money, along with the older features of free voice calls and free data, this move seems to be another attempt at disrupting the telecom market after the launch of the super-economical Reliance Jio SIM.
However, the latter move might not be as effective as the former. While the Jio SIM was able to successfully disrupt the market and force other mobile operators to cut down calling/data rates, it seems unlikely that the smartphone is likely to cause such waves. For one, most smartphones support 4G connection, and it is highly unlikely that existing users are likely to shift over to the model.
[su_pullquote]It is unlikely, therefore, that these subscribers are going to shift to these smartphones because the basic necessity of cash transfer is being taken care of and the other features are secondary.[/su_pullquote]
The high number of subscribers for the SIM, show that a large number of users have already shifted or are shifting to low-cost 4G devices. However, figures show that about 65% of the phone users still use feature phones. Jio, in line with the government’s vision of reducing cash transactions and increasing e-transactions, probably wants to target this subscriber base. However, it has been observed that the government has already created a transfer method for mobile phones which does not require an internet connection. It is unlikely, therefore, that these subscribers are going to shift to these smartphones because the basic necessity of cash transfer is being taken care of and the other features are secondary.
Previous responses
The response to an earlier set of Jio smartphones — the LYF series — has been lukewarm, with multiple bad reviews coming its way. The phones were priced at Rs. 3000 and it will be extremely difficult for Reliance to offer better features at an even lower cost. Apart from 4G and basic Jio features, the smartphone doesn’t offer anything exciting or new. While it might lure a few customers from the lower middle class, the overall scenario doesn’t look promising for the low—end smartphone spectrum.
Users are especially wary about low-cost phones after the failed Freedom 251 experiment and need more than just a basic set of features to attract them. It is also difficult to predict whether the customer base will respond positively to the move, given the fact that the free data offer by Jio is ending on 31st March 2017.
Unless Jio offers something really out of the way, it will be difficult for it to attract a viable customer base in such a short time period.
Further, while unlimited free calls— which has been Jio’s USP— will continue after March, Jio will most likely increase data rates to generate revenue. This will play spoilsport, as a large number of Jio users are youngsters and they usually look for better data rates over call rates.
Jio in demonetised India
As far as Digital India is concerned, Jio has been trying to appropriate the ambitious government project — even using the PM’s photo in its ads. However, it needs to understand that the Indian psyche has not yet adapted to the rude shock given by demonetization and the shift to cashless transactions is likely to take a longer time. Therefore it remains to be seen whether Jio can flexibly and accurately judge the ever dynamic Indian sentiment and optimise the transition from a cash-dominant to a cash-less India.
Featured Image Source : Phone Radar
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