Mukesh Ambani-led Reliance Jio Infocomm has been taking the top position since the last six months for causing breakdown in the Indian tele-communication market by providing affordable 4G tariff plans. Now, the Reliance Jio entered to the Indian smartphone market by holding the hands of Chinese Android-enabled smartphone company, such as LYF and Chinese contract manufacturers Uniscope and Techchain, FortuneShip. According to Financial Express, Reliance Jio Infocomm is keen to introduce VoLTE feature phones with useful specifications priced under Rs 1,500 in Indian smartphone market.
It was reported earlier in this current year that Reliance Jio is planning the launch of 4G VoLTE enabled feature phones that will be available in two variants and apparently will be priced between ₹999 and ₹1,500. The device (4G feature phone) was widely expected to come equipped with support for the Reliance Jio’s high-speed 4G internet and HD voice-calling. It might come loaded with Jio’s own apps –Play music and Reliance Jio digital store.
Currently, the prices of 4G feature phones from home grown mobile handset maker such as Lava and Micromax start at about Rs 3,000. Reliance already sells smartphones under its LYF-brand with the cheapest Android-enabled device (LYF Flame 5) priced at Rs 2,999. Currently the only 4G VoLTE-enabled feature phone in the market is Lava 4G Connect M1, which was launched in February this year and is priced at Rs 3,333. Domestic mobile handset maker like Micromax and Intex are also set to launch their 4G VoLTE feature phones by June and will be priced under Rs 2000.
Reliance is expected to use the newly engineered Spreadtrum chipsets for these 4G VoLTE enabled feature phones. Reliance Industries currently in a two-year-old partnership with Shanghai-based mobile chip maker Spreadtrum Communications which claims to be stared working on reducing the prices of phone by at least half the rate from current levels. However, Reliance Jio is also in talks with other chip manufacturers, MediaTek and Qualcomm for cheap 4G LTE enabled processors. Because mobile chipset is an integral part of a handset that accounts for a major price share of a device.
The sources report notes that these talks are in a nascent stage. According to the report, the company is looking for engineering samples from these Chinese manufacturers. Reliance Jio is planning to place any final commercial order only after these or other contract manufacturer samples gets “tested and verified” for commercial use.
In a report by Economic Times, the country head of Spreadtrum Communications Neeraj Sharma stated, “We are working on a technology that makes a Rs 1,500 4G feature phone viable. We have already started concept promotions to our partners.”
For Reliance Jio, a 4G VoLTE feature phone could be a game changer. Reliance Jio, which made its commercial debut in the Indian telecom sector as a telecom operator in September last year. Unlike other existing giants like Vodafone, Bharti Airtel and Idea Cellular, Reliance Jio is an entirely 4G VoLTE network, this means even calls are conducted over the 4G VoLTE network, rather than the conventional networks. So a large number of feature phone consumers in India are still not on the Reliance Jio’s network while smartphone users can easily join with the Jio network.
Since its launch in September 2016, Reliance Jio has currently over 72.4 million subscribers for its Prime subscription service. During its recent financial disclosure, the company had said it has already crossed 100 million customers since its debut. Jio has ambitions to be India’s biggest tele-communication network, and thus it makes sense for Reliance Jio to launch its 4G VoLTE feature phones, which will bring in more of these customers.
