Reliance Jio GigaFiber with GigaTV may cost Rs 500 a month; launch in Nov

Pre-registrations for the Reliance Jio GigaFiber service would begin from August 15 on Jio.com and My Jio app. However, the service is not expected to launch before the last quarter of this month

Reliance Jio, the telecommunication service provider promoted by Mukesh Ambani, is gearing up to foray into the home broadband segment with the launch of Jio GigaFiber fibre-to-the-home (FTTH) internet service, which was announced at Reliance Industries' 41st Annual General Meeting. The pre-registrations for the service would begin from August 15 on Jio 4G LTE Network and My Jio app. However, the service is not expected to launch before the last quarter of this month.

At the RIL AGM, Ambani had announced that the Reliance Jio GigaFiber had already been under testing in several cities and it would launch simultaneously in around 1,100 cities for homes, small and medium businesses and big corporate houses. He had also announced that the pre-registration for Jio GigaFiber home broadband would open from August 15, and a location that receives most users’ interest would be among the first locations to get the service.

With the Reliance Jio GigaFiber service, the company is promising internet speed of up to 1Gbps. However, the company did not share some information like the preliminary connection cost, security deposit and details of monthly plans. But a recent news report in the Economic Times hints that the company would focus on volumes to drive demand. Therefore, it would offer broadband services bundled with DTH services at about Rs 500 a month, or effectively half the price of what other cable operators charge for similar services.

ALSO READ: Reliance Jio Phone 2, Jio GigaFiber pre-bookings start on Aug 15: Know more

As for add-on features of the Jio GigaFiber, unlike most other broadband services, this would not be limited only to internet connection. The FTTH internet service would act as an underlying technology that would allow the company to foray into home automation, home surveillance, landline and cable television services. However, in the beginning, the broadband connection would have only internet services and Jio GigaTV service, which was also announced during the RIL AGM 2018.

The GigaTV set-top-box would offer internet-based digital content services, along with access to Jio’s app suite. Interestingly, the set-top-box would also support a video calling feature, allowing users to make video calls from their televisions. It is to be seen how the feature would work as the televisions currently do not support camera, in-build or external. The GigaTV remote would be voice-enabled, which would make it work with voice commands – something similar to how Amazon’s Fire Stick remote works.

Jio Fibre to Home offering unlimited broadband net with 100Mbps speed

The Mukesh Ambani-owned telecom operator is currently running trials at select locations and is expected to launch the services by the end of this year

In a speech made at Reliance Industries' annual general meeting last year, Chairman Mukesh Ambani had indicated that the group's telecom venture, Reliance Jio Infocomm, was on track to offer Jio Fibre to Home services and it would be the company’s next big monetisation opportunity. Now, according to a news report in Livemint, the telecom operator is expected to launch the wired fibre-to-the-home (FTTH) broadband services by the end of this year.

Earlier last year, Reliance Jio had started testing the wired broadband services in select cities. In beta trials, the company has been offering unlimited internet data at 100Mbps speed at a security deposit of Rs 4,500. The company has also been providing a special router, which connects multiple devices, with a multi-service operator (MSO) licence in place to offer TV services.

According to an earlier report in Business Standard, Jio has been planning to leverage technology to resolve some of the problems of FTTH. For instance, it’s likely to use power-line communicators -- a small plug-and-play device that extends the strong WiFi signal to rooms far away from the router. While FTTH can get problematic in large homes and offices, and Jio has been working on a strategy to use the existing electric wiring to transmit data and TV signals across the house.

Though nothing has been officially confirmed, the wired broadband services from Jio are expected to launch with a preview offer – similar to how the company launched its Jio services -- with free access to JioFiber services for 90 days. Under the complimentary offer, the JioFibre broadband services might offer a broadband speed of up to 100 Mbps, besides free access to Jio premium applications and television services.

Reliance Jio’s competitor Bharti Airtel recently announced a new 300 Mbps FTTH broadband plan at a monthly rental of Rs 2,199. The new plan comes with up to 1200 GB of data, along with free unlimited local and STD calls. The new plan comes bundled with a free subscription to Airtel’s OTT apps -- Wynk Music and Airtel TV.

As a promotional offer, Airtel is also offering a one-year free subscription to Amazon Prime Videos and 1,000 GB of additional data per month valid until October 2018. The broadband plan comes with a data rollover facility, which allows users to carry forward unused data to the next billing cycle.

ALSO READ: Airtel to bring 300Mbps FTTH broadband plan with 1200 GB data: Details here

RJio Monsoon Hungama: JioPhone at Rs 594 with free data, calls for 6 months

While the company is offering effectively free JioPhone at a refundable security deposit of Rs 501, the feature phone comes bundled with six months unlimited free data and voice at Rs 594

Reliance Jio, a Mukesh Ambani-owned telecommunication service provider, is gearing up to launch the second iteration of its 4G VoLTE-enabled feature phone – the JioPhone 2 – on August 15. However, before rolling out the new device, the company has announced ‘JioPhone Monsoon Hungama’ offer in which the company is offering an effectively free JioPhone, in exchange of any other feature phone, at a refundable security deposit of Rs 501; Rs 999 less than the original security deposit of Rs 1,500.

RJio Monsoon Hungama offer details

With the Jio Monsoon Hungama offer, the company also announced a Rs 99 exclusive recharge plan for JioPhone users that comes bundled with the JioPhone. While the company is offering JioPhone at a security deposit of Rs 501, the feature phone comes bundled with six months unlimited free data and voice at Rs 594 (Rs 99 x 6). This means, customers will need to shell out Rs 1,095 (Rs 501 refundable security + Rs 594 recharge) upfront to get the JioPhone bundled with six months of unlimited calls and data in exchange of their old feature phone.

ALSO READ: From today, Reliance Jio's 'Monsoon Hungama' to offer JioPhone at Rs 501

Eligible devices for exchange

Any mobile phone purchased after January 1, 2015 in working condition without any missing part or damage, broken and burnt area is eligible for exchange with Reliance JioPhone.

However, JioPhone or any CDMA or operator locked phones are not eligible and will not be accepted for exchange, according to Reliance Jio.

For exchange only the phone, along with battery and charger, is required and other accessories such as headphones, box, screen guard, etc. are not required. Users can also check if their device is eligible for exchange at Jio.com.

Existing Jio SIM users or other users on other operators

The JioPhone is a SIM-locked feature phone that works only on Jio 4G VoLTE network. Therefore, even the existing Jio network subscribers would require a new connection to operate the JioPhone. For subscribers on other networks, if they wish to retain their number, they can port their number using mobile number portability option to Jio network to use it with JioPhone.

JioPhone 2

In the 41st Annual General Meeting of Reliance Industries, Mukesh Ambani announced the JioPhone 2, which is an upgraded version of the JioPhone, with horizontal screen and BlackBerry-inspired physical QWERTY keyboard. The phone will be available starting August 15 at an introductory price of Rs 2,999.

Reliance Jio effect: Bharti Airtel posts Rs 9.4-bn loss in India operations

Total revenues were also down by 8.6 per cent to Rs 200 billion for the June 2018 quarter, compared to Rs 219 billion last year

Bruised by an intense tariff war in the telecom sector, Bharti Airtel has reported a net loss of Rs 9.4 billion in its India operations during the quarter ended June. The Sunil Bharti Mittal-led firm, set to be dethroned by Vodafone Idea as the country’s largest telecom operator, had reported a net profit of Rs 8.3 billion for India in the same period last year.

However, helped by an exceptional gain of Rs 5.15 billion, the telco has reported a consolidated net profit of Rs 970 million for the June quarter. Without this gain, Airtel would have reported a net loss on a consolidated basis. The exceptional gain relates largely to creation of deferred tax asset in Nigeria. This was partially offset by network refarming programme and costs pertaining to the business combinations completed during the quarter. The consolidated net profit was down 73.5 per cent for the reported period to touch Rs 970 million against Rs 3.67 billion last year.

Total revenues were also down by 8.6 per cent to Rs 200 billion for the June 2018 quarter, compared to Rs 219 billion last year. The net debt of rose to Rs 1.02 trillion at the end of June 30. Incumbent operators have maintained that Reliance Jio’s “predatory pricing” was responsible for their margins crashing.

ALSO READ: Chief technology officers of Reliance Jio and Bharti Airtel resign

The high-decibel tariff war is not likely to end anytime soon as Jio continues to disrupt the market. Mukesh Ambani-owned Jio has touched a customer base of 200 million within two years of starting its commercial operations, making the company the fastest to achieve the milestone.

“Industry pricing continues to remain untenable,” said Gopal Vittal, managing director and chief executive officer, India & South Asia, Airtel. On an optimistic note, he said the company’s mobile data traffic surged 355 per cent in India on a year-on-year basis, led by successful bundles, content partnerships and handset upgrade plans.

“Q1 FY19 has seen our highest quarterly capex spends of Rs 78.87 billion. Our investments have led to some opex headwinds in this quarter, but we remain focused on structural cost containment through our war on waste programme,” Vittal said.

Low tariffs continue to take a toll and the company’s average revenue per user (ARPU) in India, a key metric to gauge the profitability of any telecom operator, decreased to Rs 105 a month. The ARPU for the March quarter was Rs 116. During the last quarter, Airtel completed the acquisition of Telenor because of which its customer base in the country rose to 344 million. The consolidated Ebitda margin fell to 34 per cent in the last quarter compared with 35.6 per cent in the corresponding quarter last year. Consolidated Ebit also dropped by 43.8 per cent year-on-year to Rs 16.80 billion.

Reliance Jio postpaid users can get JioFi 4G router for Rs 499: Here is how

The JioFi cashback offer is valid only for new Jio postpaid subscribers on the purchase of JioFi 4G router. The cashback offer is applicable from today onwards i.e. July 3

Reliance Jio , a Mukesh Ambani-owned telecommunication service provider, on July 2 announced Rs 500 cashback offer on its JioFi 4G wireless portable dongle, which brings down the effective cost of ownership from Rs 999 to Rs 499. However, the JioFi cashback offer is valid only for new Jio postpaid subscribers on the purchase of JioFi 4G router. The cashback offer is applicable from today onwards i.e. July 3.

Here are the steps to avail JioFi cashback offer:

Step 1: Purchase JioFi 4G router and Jio postpaid connection by paying the device’s full amount and refundable deposit for the connection

Step 2: Use the device with Jio postpaid connection for 12 months

Step 3: After successful completion of 12 months billing cycles, the cashback of Rs 500 would be credited to user’s account that can then be adjusted in future bills

Currently, Jio only has Rs 199 postpaid plan in which the company offers 25GB of 4G data, along with free voice calls, SMS, national roaming and free access to Jio app suite, which includes Jio music, Jio movies, JioTV, Jio newspaper, etc.

ALSO READ: Reliance Jio double dhamaka offer: Know new plans, data offers, discounts

The Rs 199 postpaid plan also offers international roaming in select countries at Rs 2 per minute for voice, Rs 2 per megabyte (MB) for data and Rs 2 per SMS. It also comes with an add-on roaming pack of Rs 500 a day for unlimited voice, data and SMS.

Reliance to invest Rs 600 bn in Jio this year, may borrow Rs 1 trn more

Subscriber additions, while suppressing incumbent telecom operators, will continue to remain top priority, say analysts

Mukesh Ambani-led Reliance Industries Ltd (RIL) is likely to invest another Rs 600 billion this year in its telecom business Reliance Jio Infocomm with an emphasis on faster rollout of broadband services and wireless expansion, Livemint reported, quoting anonymous company sources.

The sources have also been quoted as saying that Reliance Jio might borrow up to Rs 1 trillion in addition to the above-mentioned investment. Jio and RIL spokespersons did not comment on queries about the investment.

“Management made it very clear that their focus in the near term is to retain and grow their subscriber base and they would respond to market pricing. Essentially the implication was that incumbents would need to raise tariffs, but this would effectively lead to loss of market share for incumbents as JIO would offer the best 'value' to subscribers and hence continue to see large subscriber additions,” noted JP Morgan in their recent report on RIL.

The report further stated that JIO is expected to launch its broadband business with a pricing strategy similar to that of its telecom arm, given its focus is on creating a new market.

While JIO’s average revenue per user (ARPU) fell to Rs 137 from Rs 154 in the last quarter of 2017-18, it still remains better than that of Airtel and Idea cellular. JIO also managed to add almost 9 million subscribers during the quarter.

“Jio is expected to remain aggressive to gain market share, which could keep industry revenue under pressure and return ratios of incumbents suppressed,” noted an India Equity Research in a report on Monday.

JioFiber, the wired broadband arm, has started offering what they claim to be 'ultra-high-speed' fibre to home (FTTH) broadband connections with 1.1 terabytes (TB) of free data at speeds of 100 megabits per second (mbps) in select markets in the country already. However, commercial services are likely to be rolled out in the second-half of the year.

The company currently claims more than 300,000 km of optical fibre network in the country and the company is expected to target over 100 million households across the country with the service.

Reliance Jio Prime membership subscription to end on March 31: What next?

Jio Prime subscriptions, started April 1 last year, expire on 31 March. Now, with the expiry approaching, it is expected that Jio would make a new announcement sometime soon

Reliance Jio shook the Indian telecommunication space with the launch of its affordable, data-centric network. After doling out freebies for more than the first six months since the launch, the Mukesh Ambani-owned telecom major introduced Prime membership at Rs 99 with the promise of offering subsidised recharge options and additional benefits for a period of one year.

The Jio Prime memberships, which came into effect on April 1 last year, are valid until 31 March. Now, with the subscription expiry approaching, it is expected that Jio would make an announcement sometime soon.

While there is nothing official yet, it is expected that the company might completely do away with the Prime subscription or offer it as a free service.

Here is what the company offered in the first iteration of the Prime membership:

• Free unlimited data and voice services for one year at an effective price of Rs 10 per day
• Special recharge plans with additional data and validity
• Free VoLTE-based voice calls to any network, even on roaming with no black out days either.
• Free access to Jio app suite

The Prime membership was initially rolled out as a loyalty programme to retain subscribers as the company moved from free to paid services.In the first leg, the Prime membership was advertised as a limited period offer. However, as time moved, the company continued offering the membership to get more subscribers. Now, according to Jio’s official portal, there is no mention of services that the company offers to non-prime subscribers. Therefore, it is safe to assume that the subscription based membership program may eventually fade out.

Flipkart lists Reliance JioFi WiFi hotspot JMR815 at Rs 999: Details here

JioFi 4G WiFi hotspot is capable of attaining a download speed of up to 150Mbps, and upload speed of 50Mbps. It features a circular design and allows up to 32 simultaneous connections

Reliance Jio has added a new 4G LTE hotspot model to its portfolio of JioFi devices. The new model, dubbed the JioFi JMR815, is currently available on Flipkart at a price of Rs 999. However, the JioFi is not yet listed on Jio’s online portal.

The JioFi 4G WiFi hotspot, according to the Flipkart listing page, is capable of attaining a download speed of up to 150Mbps, and upload speed of 50Mbps. The device features a circular design, unlike the oval design of the predecessor.

It allows up to 32 simultaneous connections – 31 WiFi and 1 USB – to connect over Jio’s 4G network for accessing the internet. The device also allows HD voice calls and video calls on non-4G phones via Jio 4G Voice app.

JioFi 4G WiFi hotspot JMR815In terms of features, the device has power buttons, along with WiFi Protected Setup (WPS) button for instant connection. There are notification lights for battery, 4G connectivity and signal strength. It is powered by an ALT3800 processor and supports 4G connectivity at FDD-Band 3, Band 5, and TDD-Band 40 – supported by Reliance Jio.

JioFi 4G WiFi hotspot JMR815The new JioFi hotspot device also sports a a microSD

card slot to augment storage to up to 64GB. The device is powered by a 3,000 mAh battery.

RCom: Will the monetisation plan work?

RCom has also talked about monetising its real estate but that is easier said than done

Anil-Ambani led Reliance Communications' offer to lenders to take control of the company by converting Rs 7,100 crore of its debt into a 51 per cent equity stake is perhaps the telecom major's best bet. If the latest rescue attempt goes through, lenders led by SBI will hold at least 51 per cent in the telco and promoters stake will be halved to around 26 per cent.

RCom has said it will get about Rs 17,000 crore by monetising its assets. The plan includes selling its tower business, fibre network, and media convergence nodes and it will estimates another Rs 10,000 crore through real estate sales in eight cities. Post debt monetisation, the company said it would have only Rs 6,000 crore of debt left. Moreover, another Rs 4,000 crore taken from unsecured creditors like Ericsson needs to be negotiated with.

So how prudent is this monetisation plan?*

Under its earlier plan, RCom had said it would cut its debt by half by December through a merger with Aircel and sale of majority stake in its tower business to Canada-based investment firm Brookfield Infrastructure for Rs 11,000 crore, valuing the business at Rs 20,000 crore. However, now that the Aircel deal is off and RCom shutting down its 2G business, which constitutes for a bulk of its subscribers, the deal valuation is likely to be revised downwards. In essence, the telecom tower deal is subject to a new valuation given that Aircel’s tenancies will not be included in the deal anymore. Moreover, RCom now runs the risk of losing at least half of its 2G subscribers.

Also Read : New Year disruption plan: Now, Reliance Jio moves to broadband, TV space

Analysts say that even if RCom sells the entire 100 per cent stake in its 43,600 tower assets to Brookfield it will not fetch them more than Rs 8,000 crore.

RCom is hoping that it will be able to rake in Rs 14,000 crore from its spectrum sale though the value of the spectrum is Rs 26,000 crore, which includes spectrum it got from the merger of MTS. However, analysts are of the view that there is already a huge oversupply of spectrum, and that the paper price might not be reflected in reality. RCom may also not find many takers for its spectrum given how things went down with Telenor and TTSL which gave their spectrum virtually free to Bharti Airtel. (more)

iPhone X debut: Will slow supply dampen Apple's hopes in India?

iPhone X, which marks the 10th anniversary of the device, costs Rs 89,000 for a 64 GB model

After facing a lacklustre response to iPhone 8 and iPhone 8 Plus globally, including in India, Apple has now placed its bet on successful delivery of "super premium" iPhone Xthat aims for a scheduled arrival on November 3.

In the past few days, several media reports have claimed that Apple is facing a huge supply gap primarily for two reasons: difficulties in assembling the new facial identification software and 3D camera, and "off the charts" pre-orders for iPhone X after the Apple fraternity didn't make the expected beeline for iPhone 8 and 8 Plus.

The scenario suggests that people will have to wait long before they can grab an iPhone X. Analysts have already warned that the stock on hand is scarce, owing to constrained supply of key iPhone X components. The advanced depth-sensing camera system in iPhone X requires parts that only a few manufacturers can produce.

The iPhone X, which marks the 10th anniversary of the device, costs Rs 89,000 for a 64 GB model and Rs 1.02 lakh for the 256 GB variant.

According to Tarun Pathak, Associate Director, Mobile Devices and Ecosystems, Counterpoint Research, supply issues will have three main implications for Apple.

"Either the demand for iPhone X will shift to subsequent quarters or some part of the demand will be absorbed by iPhone 8 series if supply is delayed for long. In both the cases, it won't have much impact on Apple as its user base will remain within the iOS ecosystem," Pathak told IANS.

However, there is another scenario - where an Android premium user who wishes to shift to iPhone X decides instead to upgrade within the Android ecosystem due to unavailability of iPhone X. (more)

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.”

Airtel takes on JioPhone with Rs 1,399 4G smartphone: All you need to know

The partnership between Airtel and Karbonn is part of Airtel's 'Mera Pehla 4G Smartphone' initiative

Bharti Airtel has collaborated with home-grown Karbonn Mobiles to offer a 4G smartphone at an effective price of Rs 1,399. Dubbed ‘Mera Pehla 4G smartphone’ by the telecom major, the initiative is aimed at providing affordable 4G smartphone to people seeking to move from feature phones to smartphones and experience high-speed internet on the go.

Under the partnership, the Karbonn A40 Indian smartphone, which has a retail price of Rs 3,499, will be offered at an effective price of Rs 1,399. The smartphone comes bundled with a monthly pack of Rs 169 from Airtel, which offers generous data and calling benefits.

To avail of the smartphone bundled with Airtel benefits, the customer needs to make a down payment of Rs 2899 for the 4G smartphone and make 36 continuous monthly recharges of Rs 169. The customer will get a cash refund of Rs 500 after 18 months and another Rs 1000 after 36 months, taking the total cash benefit to Rs 1500.

Karbon A40 India smartphone with Airtel bundle offer

In case the customer does not wish to opt for the Rs 169 bundled plan, she/he has the flexibility of doing recharges of any denomination and validity as per individual requirements. However, to claim the cash refund benefit, recharges worth Rs 3000 must be done within the first 18 months (to claim the first refund installment of Rs 500) and another Rs 3000 over the next 18 months (to claim the second refund installment of Rs 1000).

The ownership of the smartphone is completely with the customer and there is no need to return the device to Airtel/Karbonn at any point to claim the cash benefit.

Starting October 11, Karbon A40 India and other smartphones under the ‘Mera Pehla 4G Smartphone’ initiative will be available at leading mobile stores across the country. After sales support for the devices will be provided by the handset manufacturers through their service network. (more)

Rs 2500 JioPhone @ just Rs 1500! How RIL is planning to recover losses

Jio has amassed more than 128 million subscribers since its launch last year

Reliance Industries' telecom upstart Jio is footing at least 40 percent of the cost of its basic 4G phone, two sources familiar with the matter said, as it bets on recovering the investment by luring in millions of new customers.

The Jio Phone, rolling out this week for a refundable deposit of 1,500 rupees ($23.05), will cost at least 2,500 rupees ($39) to assemble, the sources told Reuters.

That means Jio will likely carry more than $150 million in costs for every 10 million JioPhones it sells.

And the company aims to build a subscriber base of between 250 million and 300 million users in the next two years, said one of the sources.

Reliance Industries did not respond to a request for comment.

Some Reliance investors may flinch at the cost of subsidies, but the scale of the outlay is a clear signal of the level of Jio's ambition, as it targets an audience of some 500 million who still cannot afford smartphones in India.

Also Read : Nokia 8 with dual rear camera launched in India at Rs 36,999

Jio's advanced voice over LTE (VoLTE) network only works with 4G enabled devices, inaccessible to many even at subsidised rates. The significantly cheaper JioPhone, however, will open the Internet to a less affluent segment of Indians for the very first time.

"The 3,000-rupee smartphone was not cutting it," the second source said. "Reliance is making a bold attempt with this phone and data will be the key driver for them."

Analysts estimate a majority of Indian feature phone users have an average revenue per user (ARPU) of rupees 50 or lower. JioPhone's 153 rupees monthly plan for so-called pre-paid users aims to drive up this ARPU, the first source said.

Jio, backed by India's richest man Mukesh Ambani, has amassed more than 128 million subscribers since its launch last year, by offering free voice and cut-price data for months.(more)

Jio 4G handset is virtually free for users; what's the game plan?

This handset could rattle older rivals, but experts are sceptical about mass conversions for Jio

Indian Companies News : In a move that may rattle its older rivals, already destabilised by some of the disruptive plans and freebies offered by it in the past months, Mukesh Ambani-backed Reliance Jio on Friday unveiled its ultra-low-cost 4G feature phone.

However, the success of the new Reliance Jio mobile phone would be pegged on 2G phone customers doubling their present monthly bill on mobile services.

For that to happen, the country’s average revenue per user (Arpu) – currently at Rs 80 for feature phone users and pegged at around Rs 104 overall – will have to go up substantially.

To enable that, Jio is offering users an attractive preposition – unlimited calls (earlier the feature phone users had only limited call time), as well as unlimited data with a cap of 0.5 GB per day (earlier they had no or minimal data usage) on a Rs 153 pack. Also, Jio is offering applications that include videos as well as live TV and YouTube, which will only help customers move to higher data usage and, thereby, larger packs.

In fact, the company has also ensured that customers will not have to pay for the new handset at all if they commit to Jio for the long haul. Reliance Jio is offering the device at a deposit of Rs 1,500, which will be paid pack after three years. While this helps the company garner a huge amount of money upfront, the effective cost for the customer is only the notional interest that he would forgo on an amount of Rs 1,500, which is negligible of course.

Unlike in the case of the earlier Monsoon Hungama plan (phone bundled with services at Rs 501) offered in 2003 by the erstwhile Reliance Infocomm (now Reliance Communications), there will be no risk of the customer running away with the phone this time. The user will remain sticky for at least three years, as not only is the device locked to Jio, but he also needs to continue using Jio for availing of money back. Read more

Jio disruption: Feature phone to cost Rs 0 with Rs 1,500 refundable deposit

Jio feature phone offered free voice, SMS, unlimited data at Rs 153/month

Reliance Industries Limited (RIL) on Friday held its 40th AGM or annual general meeting for shareholders today, at Birla Matushri Sabhagar in Mumbai. During the event, Reliance announced the launch of its 4G feature phone. Along with that the telco has announced its cable TV device. The JioPhone will be available for free but buyers will have to deposit a fee of Rs 1500 which will be refundable after three years. This means the phone will be available at an effective price of zero.

The phone, targeted at 50 crore feature phone users in the country, will be available for pre-booking from August 24 on payment of a refundable security deposit of Rs 1,500.

Indian Companies News : This deposit will be refunded after 36 months on return of the phone, he said, adding that the price of the phone will be "effective zero".

He used the occasion to introduce his twin children, Akash and Isha, who presented the phone features that include calls and text messaging on voice command, Internet surfing and cable to connect the device to TV to view content, including videos.

Also Read :

• Jio disruption: Feature phone to cost Rs 0 with Rs 1,500 refundable deposit
• RIL AGM: Mukesh Ambani announces 1 bonus share for every 1 share held
• Reliance unveils zero cost 4G phone, aims to further disrupt telecom sector

"JioPhone will make the 2G feature phone obsolete," Ambani claimed, adding that the company is looking to bring 5 million phones to the market a week.

The JioPhone will be available for user testing in beta mode from August 15 and for pre-booking from August 24.

"Reliance democratised the equity culture in the past. Now, Jio will democratise the digital culture in India," he asserted. "Digital Life will no longer be the privilege of the affluent few."

Out of the 78 crore phones in India, Ambani said, 50 crore are feature phones that cannot be used for Internet or data usage. The new phone would give "affordable" device to these 50 crore users and "end the digital exclusion in India". Read more full article.

IUC report: Reliance Jio alleges Rs 100,000 cr bonanza to incumbents

Says bonanza due to IUC suggestions not being carried out by Trai

Stepping up its attack on incumbents, Reliance Jio has alleged that three major operators benefitted by over Rs 100,000 crore in the past five years owing to non-implementation of the telecom regulator’s 2011 recommendations on interconnect usage charges (IUC), or terminating charges.

In an affidavit to the Supreme Court in 2011, the Telecom Regulatory Authority of India (Trai) had recommended that the IUC charges be cut to half from 20 paisa and gradually shifted to the ‘bill and keep’ model — which means zero charge — by 2014. But in 2015, the IUC was only brought down to 14 paisa with the mandate that it would be revised after two years.

Company Business News : The additional money that the big three incumbents have made, according to Jio’s allegations, is based on the net present value (which includes interest income) and reflects the excess recovery made by them over the actual cost that they have to incur for terminating a call. The presentation was given by Jio to the Trai on Tuesday.

Jio also said that India was moving against the global trend of reducing IUC. It said that IUC as a percentage of blended retail mobile price is currently 1 per cent in China, 9 per cent in UK, 11 per cent in France, and 13 per cent in Japan. But in India, IUC, which constituted only 10 per cent of the average tariff in 2003, has now climbed up to 45 per cent.

Jio argued that the value of surplus recovery for the three incumbents was to the tune of Rs 20,624 crore in the financial year ended 2017.

Making a strong case for shifting to the bill and keep model, Jio stated that the cost of delivering voice on an IP network was practically nil and it seemed that new operators were merely subsidising the incumbents because of their ineffeciencies and older networks. Read more full article