Jio Effect: telcos to launch 4G phone under 500, unlimited data and calling just Rs 60

Telecom, industry has been changed a lot over a year. If you look one-two year ago 3G was on the boom and very few users were using 4G. Reliance Jio’s entry changed the prospect of what had been a stagnant industry. Now every other user has 4G phones and Jio sim with them. All other telecom service providers are facing a tough time to fight with Jio. The latest effort by incumbents is to bring 4G Phone under 500.

Jio 4G Phone Effect: Airtel to Launch 60 Rs Monthly Pack

Top three telecom operators, Bharti Airtel, Vodafone India and Idea Cellular, are working with handset companies to make 4G smartphones cheaper than feature phones, as low as Rs 500, said a newspaper report. This will be a 4G phone under 500 rs.

If the information is correct then, we could see 4G phone under  500 Rs. And the telcos will bundle those phones with data and voice packages costing anywhere between Rs 60-70 per month. If this happens then it will be a great deal against Jio Phone.

Why Cheapest 4G Plans Required?

There will be no subsidizing of phones like the way Jio does with the Jio Phone says one of the telcos. Also, the further added We will gear towards low-cost smartphones via alliances. Smartphones are expected to become cheaper, so for an offering with them, it makes more sense than setting up our own phones,”.

If we look at Jio’s whole plan about the Jio Phone. Users are required to pay Rs 1,500 upfront, which will be refunded in full to the buyer after three years. The smart feature phone works out to be essentially free to users. In competition, telcos are going to offer unlimited voice and 1GB data for 28 days at just Rs 49 instead of Rs 153.

According to the report by ET, this effort by other telcos operators will be a direct blow to Jio’s effort in targeting the majority of mobile subscribers in India.

“Bringing out a new feature phone and subsidizing it will be akin to setting up a new business, which will be tough given the revenue pressures,” Rajan Mathews, director general of the Cellular Operators Association of India, told the ET.

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