Taking on Jio: Now Vodafone to offer 4G smartphones for Rs 2,899

Vodafone has forged a partnership with Micromax, wherein customers can own a 4G smartphone for Rs 999

As the incumbent operators look to take on Reliance Jio and retain their customer base for feature phones, they are forging partnerships with handset makers so as to make smartphones affordable and within reach of a large section of society.

After Airtel, which has tied up with Karbonn to come out with a smartphone for an effective price of Rs 1,399, Vodafone has also forged a partnership with Micromax, wherein customers can own a 4G smartphone for Rs 999.

According to the Vodafone offer, existing and new Vodafone customers will have to buy the Micromax Bharat-2 Ultra smartphone by paying Rs 2,899 and if they recharge at least Rs 150 per month for 36 months, Rs 1,900 will be returned as cashback.

Also Read : Micromax launches budget smartphone

At the end of 18 months, users will receive a cashback of Rs 900 and after another 18 months, a cashback of Rs 1,000, in their Vodafone M-Pesa wallets. Vodafone has not provided a specific plan for the Micromax offer and people buying the device can recharge with existing offers of the company.

As the company is targeting feature phone users, who usually recharge with amounts starting at Rs 10, Vodafone has allowed the flexibility for users to choose recharges of any denomination but to avail the offer, a minimum of Rs 150 should be spent in a month, or Rs 2,700 in 18 months.

Avneesh Khosla, associate director — Consumer Business, Vodafone India, said, “Through our partnership with Micromax, we have democratised 4G smartphones at a price of under Rs 999. This will help fulfill the aspirations of several million phone users across the country who desire a smartphone but couldn’t afford one.”

At Reliance AGM, Jio financials, 4G feature phone would be the focus

Street to also watch for details on home-to-fibre, fuel and organised retail segments

In September last year, Reliance Industries (RIL) Chairman Mukesh Ambani shared the roll-out plan for Reliance Jio’s telecom services at the company’s annual general meeting (AGM). This Friday, shareholders and investors will look for details on revenue generation from these services.

RIL is slated to announce its earnings for the April-June quarter (Q1) on Thursday and hold its AGM the day after. Analysts expect the focus, both in terms of the June quarter numbers and the AGM, would be on the company’s telecom business.

The details are important and will reflect on investor sentiment, which is on the rise. On Friday, the RIL stock scaled to a nine-year high.

Company News : While Jio started offering its services in September last year, these services have largely been provided free till March and continue to be offered at discounted prices. Among other details, analysts and shareholders would look for data on revenue generation and the profitability timeline for this business. “Telecom would be the topmost thing to watch, as details on other business like the oil and gas segment have been already spelled out,” said an analyst with a domestic brokerage firm.

Last week, the company extended its promo offers for Jio services, adding to scepticism on any meaningful revenue addition in the current financial year. “We see downside risk to our Jio financial year 2017-18 revenue estimate of $2.7 billion, due to extension of the promotional offers. We are unsure if our FY18 revenue estimate for Jio holds any weight, given that Jio has been capitalising its revenue/expenses thus far,” a Morgan Stanley report dated July 11, said.

In addition to financial details, analysts and investors will look out for official comments on plans for low-cost 4G phones. “While every AGM has the usual expectations on bonus issue (the previous bonus issue was in FY 2009-10), expectations this time are high on another large announcement in telecom, especially 4G feature phones,” analysts with JPMorgan wrote in a report dated July 12. Read more

4G phones to drive smart devices market in India: Samsung

Mobile handset maker Samsung India said on Tuesday that 4G phones will drive the smartphone market in the country on the back of increasing data speed.

Samsung, one of the largest smartphone makers in the country, also claimed 60% share in total shipments of 4G phones in the country last year.

"With data speed, evolution of network happening, the adoption of smartphones will accelerate and 4G will be one of the key factors," Samsung India General Manager (Mobile Business) Vishal Kaul, said.