Monday, 24 July 2017

Reliance JioPhone will force incumbents to protect subscribers: Jefferies

Reliance JioPhone

Reliance Jio's newly launched JioPhone aimed at over 50-crore feature phone users will pose a stiff challenge to incumbents to protect their subscriber market share, investment banking firm Jefferies has said.

"The monthly plan compares favourably against the blended ARPU (average revenue per unit) of top three incumbents, but it does provide a cap. Even though the pricing is not as disruptive as feared, it will still be a stiff challenge to incumbents to protect their subscriber market share," Jefferies said in a report.

Jio launched its much-awaited 4G feature phone, which will be made available from September. The device is priced at Rs 1,500, collected as a fully refundable deposit, refundable at the end of three years.

The company is targeting shipments of 5 million phones a week. The monthly plan for Rs 153 would offer unlimited voice/SMS and 0.5GB of data per day. There are two sachet plans for Rs 24 and Rs 54 with validity of two and seven days respectively.

The phone can be connected to the television through a Jio Phone cable. However, this will require enrollment to the Rs 309 per month plan (1GB per day allowance) which will allow three-four hours of daily video streaming.
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