Why do feature phones make business sense for Jio?

Jio's primary plan for the Jio Bharat 4G feature phone ecosystem is to convert non-data users into data users, thereby tapping the vast 2G subscriber base

- VERNIKA AWAL

On 7 July 2023, telecom operator Reliance Jio fired its latest salvo to procure more subscribers with a long-term network effect. The product in question is a humble feature phone, called Jio Bharat 4G. In terms of its overall features, the device is as basic as what you could expect today, a 1.77-inch display, storage mostly via microSD memory cards, and a physical alphanumeric keypad that has increasingly become a rarity.

Yet, Jio's ploy behind this new feature phone is multifaceted. For one, the 'Jio Bharat' tag refers to not just one phone; according to Jio, it is the entire platform. The latter is being pitched to manufacturers and third-party brands, who can sign associations with Reliance Jio to make devices for this platform. Eventually, Jio plans to create an ecosystem of devices under this platform, wherein original equipment manufacturers (OEMs) get paid by Jio for offering a supply chain to this brand.

Talks of developing Jio Bharat as a platform were confirmed by Kiran Thomas, President of Reliance Industries in a report published by a business newspaper.

GOING BACKWARDS TO MOVE FORWARD

So, why is Jio eyeing a feature phone platform at a time when smartphones are the norm, and 5G is knocking on the door? The answer lies in the total base of users in India that still use feature phones.