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Due to moderation in subscriber additions, Reliance Jio ’s new target market will be 150 million feature phone users that contribute 15-17% of sector revenues, thereby encouraging the company to offer its feature phone at Rs 500-1000 per device, CLSA said on Wednesday.
But to be able to offer the handset at such disruptive price, the Mukesh Ambani-owned telco will be providing Rs 500-1000 subsidy per device assuming that the cost of each feature phone would be Rs 1000-1500.
Assuming Rs 500 subsidy being provided per device and 100 million devices being sold, the company will be offering a total subsidy of Rs 50 billion. The company will look to compensate this with lower interconnect costs as higher subscriber market share would also drive a higher share of on-net calls, CLSA said.
To trigger mass adoption for the 4G feature phones, Jio may come up with promotional tariffs bundled with 4G feature phones.
This is how Reliance Jio will manage to offer the cheapest 4G feature phone: CLSA - ET Telecom
But to be able to offer the handset at such disruptive price, the Mukesh Ambani-owned telco will be providing Rs 500-1000 subsidy per device assuming that the cost of each feature phone would be Rs 1000-1500.
Assuming Rs 500 subsidy being provided per device and 100 million devices being sold, the company will be offering a total subsidy of Rs 50 billion. The company will look to compensate this with lower interconnect costs as higher subscriber market share would also drive a higher share of on-net calls, CLSA said.
To trigger mass adoption for the 4G feature phones, Jio may come up with promotional tariffs bundled with 4G feature phones.
This is how Reliance Jio will manage to offer the cheapest 4G feature phone: CLSA - ET Telecom
