Telecom companies scramble for users ahead of Reliance Jio4G launch
Last week, Idea Cellular reduced data prices by offering its prepaid users up to 45% more benefits in case they use under 1GB data, in an effort to attract new users and retain existing customers. Bharti Airtel also slashed prepaid data rates, offering 67% more benefits at the same cost. Vodafone India is expected to follow suit in the coming days.
Reliance Infocomm's Monsoon Hungama Campaign in 2002
In 2002, Reliance sold CDMA mobile handsets for just Rs.500, prompting people from all economic backgrounds to lap them up. Introducing handsets at ultra-low prices increased competitive pressures in the industry, fuelling the growth of numbers and greater penetration. It has been called the "most memorable CDMA event". Policy measures like the Calling Party Pays regime, inter-connectivity,and bigger foreign investment complemented the market push.
Reliance offers price cuts on LYF 4G smartphones
Just ahead of Reliance Jio 4G launch, Reliance LYF phones witnessed a price cut that allowed users to buy a Lyf phone for as low as Rs 2,999 along with a free Jio SIM with 3 months of unlimited 4G data. Reliance Jio 4G was launched last year, with only employees getting access to it on a trial basis to test the network's capabilities.
Jio's strategy
Reliance Jio is planning to launch its 4G services as early as August 2016. Its maiden plan will be called 'Freedom', which is expected to offer free voice services coupled with data, almost 25% lower than the current rates of top rivals. It is also reportedly extending its 3 month unlimited data preview offer to iPhone and HP users in India.
Reliance Jio to offer 4G connectivity only across India
Reliance Communications has liberalized 850MHz spectrum on a pan-India basis and the 4G LTE upgrade will be done on a national basis. It has paid around Rs.6,600 crore for liberalizing its spectrum in 20 out of 22 circles.
Reliance CDMA to be phased out soon
In a report dated 17 June, Sanjesh Jain, research analyst, ICICI Securities Ltd, wrote "As we approach the launch of fourth-generation (4G) services by Reliance Jio Infocomm Ltd (R-Jio), we believe it could likely mark the end of CDMA services".
