Aceing The 4G-Game

 Reliance Jio isn’t only setting new trends but actually changing the whole game with its 4G-LTE handsets

- Manoj Gairola

WHAT COULD BE THE biggest impact of Reliance Jio’s 4G -LTE feature phones? If the handset quality and connectivity are good, Jio may act as a catalyst in phasing out 2G from India. Last month, the company announced the launch of a new phone that offers three-year refundable security deposit of Rs 1,500 and unlimited voice and data at Rs 153 per month. This will have a major impact on the 2G service market that is about Rs 60,000 crore per annum.

Until now, Reliance Jio couldn’t enter this market as it didn’t have a device for this price-sensitive market. The market was ruled by incumbent operators who have largely 2G networks, even though they are shifting to 4G services.

When Reliance Jio launched 4G in September last year, 3G started phasing out from India. The supply of new 3G handsets has, in fact, largely stopped. So when existing 3G smartphone users want to buy new phones, they shift to 4G as 3G handsets are not available in the market. Generally, users are not much bothered about the technology (3G or 4G), they want good speed at low prices which they get from 4G.

It could be the same story for 2G. Reliance Jio’s LTE Feature phones are available for Rs 1,500 (a refundable amount), and they come with unlimited voice and data services. With that offer, Jio has broken the entry barrier. Its monthly tariff is also very attractive.

There are about 50 crore feature phone users in the country and about 20 crore users pay a bill of more than Rs 150 per month. This is the segment that will be the first to jump to Reliance Jio’s offer. “Unlike smartphone customers, feature phone users are not brand conscious. They have no loyalty to a service provider or a handset brand. They look for value for money,” says a former CEO of a large telecom service provider.