Reliance JioPhone effect: Idea to launch affordable 4G phone
What's the story
Further disrupting the Indian telecom market, Reliance Jio recently unveiled the ultra-cheap 4G VoLTE JioPhone at Rs. 1,500 deposit (fully-refundable after three years). It has left rival telcos baffled as JioPhone gives Jio a greater advantage in the ongoing telecom war. Now, flagging net neutrality concerns about JioPhone, Idea Cellular announced it wants to launch a better phone at around Rs. 2,500. Know more!
Concerns
Net neutrality concerns surrounding JioPhone
Idea Cellular MD Himanshu Kapania said JioPhone would allow apps of Reliance Jio's preference, forcing consumers to use the operator's choice of apps. He added Idea is in talks with phone makers to launch a better yet affordable phone to offer the "freedom of choice". The basic idea of the telco is to reduce the price-gap between entry-level smartphones and JioPhone.
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Idea's market research efforts
Kapania stated, "We are looking at how much features can be brought down, how much bill of material can be brought down (to reduce prices) and test consumer response in each of these."
Mobile Internet Users
JioPhone has different OS while 97% smartphones run on Android
Kapania said JioPhone could appeal to voice-usage consumers but not to Internet users as it lacks smartphone-like features such as touch-screen and bigger screen-size. He stressed Idea would offer various choices to users; from choosing operators of their choice to apps, they want to use like Facebook, Google or WhatsApp. He, however, added they have no plans to subsidize the handset.
Other Carriers
Operators should introduce affordable phones with better offerings
Kapania said Idea is working with device manufacturers on a practical solution to bring down the cost of phones so that the gap between the price of JioPhone and a smartphone can be reduced. He added JioPhone would likely be distributed in large numbers from Sep'17. He stressed other telcos must collaborate to introduce similar affordable and better phones to counter JioPhone.
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Phone makers and telcos have to come together, says Kapania
Kapania said, "Both the handset manufacturers and telecom operators need each other to make sure that the offering to the consumer is strong enough when you have to make a choice between a bundled offer and a telecom operator with a locked handset."