RIL Becomes India’s Highest-valued Company Based on Market Capitalization

October 17, 2018

Reliance Industries Limited (RIL), the Mukesh Ambani-led oil-to-textile-to-telecom company, has become the country’s most valued company based on market capitalization on October 17, 2018. On October 16, 2018, on the Bombay Stock Exchange (BSE), the company’s market capitalization closed at INR 737,576.57 crore. This is attributed to the popularity of the company amongst the masses.

Details of RIL’s market performance

On October 16, 2018, RIL’s shares closed at INR 1,163, which was an increase of 2.09 percent from the earlier close on BSE. Since late June 2018, RIL’s shares have been widely rising. They have been benefitting strongly among the blue-chip components of the BSE SENSEX index.

On October 17, 2018, RIL’s shares showed a strong performance and were being traded at INR 1,172.20 per share, after reaching an intraday amount of INR 1,180.95. This was an increase of 0.83 percent in the early morning trade.

Details of top Indian companies

The second most valued company by market capitalization is Tata Consultancy Services, with a market capitalization of INR 736,105.31 crore. The third position is held by HDFC Bank, with a market capitalization of INR 541,370.18 crore. The fourth position is held by ITC, with a market capitalization of INR 345,918.24 crore. The fifth position is held by Hindustan Unilever Limited, with a market capitalization of INR 334,297.56 crore.

Growth of RIL

2017 was a strong year for RIL, as it added over INR 2 lakh crore to its market capitalization. On February 27, 2017, RIL reached the INR 4 lakh crore market capitalization mark. In November 2017, the market capitalization of RIL had crossed INR 6 lakh crore.

In August 2018, RIL became the country’s first INR 8 lakh crore company, after reaching a new 52-week high. The company also surpassed the USD 100 billion market capitalization mark. This mark was crossed on the intra-day of October 18, 2007. During that time, the US dollar was quoted at INR 39.59.

Details of the inception of RIL

RIL was founded in 1966. At that time, it had only one employee, who was Late Dhirubhai Ambani, and a capital of INR 1,000. Currently, his son, Mukesh Ambani, is the Chairman and Managing Director of RIL. At the Financial Times ArcelorMittal Boldness in Business Awards, which was held in March 2018, Mukesh Ambani stated that his father had a dream of building RIL into a world-scale and world-class Indian business conglomerate. Ambani added that due to his vision and determination, his father was able to realize this dream in his own lifetime.

Details of Reliance Jio

Reliance Jio is the telecom wing of the Mukesh Ambani-led Reliance Industries Limited, which began operations in 2016.

Reliance Jio has three pillars, with the objective of transforming the country’s digital landscape. The first pillar is a strong network coverage across the country. The second pillar is quality services for its Reliance Jio subscribers, with HD quality voice, video streaming, and high-speed internet speeds. The third pillar is affordable and accessible services.

Summary: RIL becomes India’s most valued company based on the market capitalization of INR 737,576.57 crore. This is attributed to the popularity of the company amongst the masses.

Reliance JioPhone Now Accounts for Almost Half of the Feature Phone Market

October 10, 2018

The Reliance Jio Phone, the 4G-enabled feature-phone introduced by Reliance Jio, currently accounts for nearly 50% of the Indian feature-phone market. Since the last two months, approximately 50% of the additions of new subscribers to Reliance Jio’s network is coming from the Reliance JioPhone. This was when the handset’s price was reduced to INR 501 from INR 1,500.

Data from Counterpoint Research

According to Counterpoint Research, the Reliance JioPhone accounted for 47% of India’s overall feature-phone shipments from April 2018 to June 2018. Currently, the Reliance JioPhone is the market leader in this segment.

The Counterpoint Research data also showed that the feature-phone market of the world grew 5% year-on-year to 111 million units from April 2018 to June 2018. Reliance Jio was a leader in this market and accounted for 18% of the share. This signifies that, for the aforementioned quarter, the shipments of the Reliance JioPhone were in the range of 20 million.

Opinions of analysts and other sources

Industry analysts have stated that Reliance Jio’s pan-India 4G network is expanding in small villages and towns. This is due to an almost-free Voice-over-LTE-enabled phone and discounted tariff plans.

Prior to the JioPhone’s price reduction, the 4G-enabled feature-phone has sold approximately 25 million units in eight months. Industry analysts considered this as a strong number.

Sources have said that after the Reliance JioPhone’s price has decreased to INR 501 in July 2018, via the ‘Monsoon Hungama’ scheme, the telecom company’s per month subscriber addition has increased. Earlier, the per month subscriber additions were 6 to 7 million. However, this has now increased to 10 to 12 million on a monthly basis. Approximately 50% of these additions now come through the JioPhones.

Additionally, industry analysts have said that due to the affordable cost of the feature-phone, the telecom company’s net subscriber addition is expected to witness a big boost. They have this opinion due to the contribution of JioPhone to Reliance Jio’s adjusted gross revenue for the April 2018 – June 2018 quarter. This was when the access service revenue of Reliance Jio was INR 7,125.69 crore. The core reason behind this achievement was Reliance Jio’s progress in the C-category circles.

C-category circles include Himachal Pradesh, Bihar, the north-east, Odisha, Assam, and Jammu and Kashmir. Industry analysts have also stated that with the objective to boost the digital revolution in the country, Reliance Jio will offer the customers with affordable data plans and quality services.

Latest app additions to the Reliance JioPhone

Not only has the telecom company reduced the JioPhone’s price, but it has also Jio added popular apps to it such as YouTube, WhatsApp, and Facebook. These apps together have a market share of approximately 80%. After these apps were introduced, there has been an increase in the traction of the handsets among users.

Summary: The Reliance JioPhone now accounts for half of the Indian feature-phone market. This is due to a reduction in price, the introduction of new apps, and the provision of affordable data plans on Reliance JioPhones.

Everything to Know about Reliance Jio’s Long-term Prepaid Plans

October 3, 2018

Reliance Jio, the telecom wing of the Mukesh Ambani-led Reliance Industries Limited (RIL), currently offers monthly-prepaid plans with unlimited data. The telecom company offers four long-term prepaid plans. Reliance Jio has transformed the telecom industry since 2016 by introducing several affordable 4G plans. This is an effort to offer Indian mobile phone users different plans to meet their varied needs. This is in line with Ambani’s vision to digitally revolutionize India.

Details of Reliance Jio’s prepaid plans

Currently, the data offering under Reliance Jio’s different prepaid plans ranges from 1.5 GB per day to 5 GB per day. This is in addition to 100 free text messages per day and free unlimited voice calling within local networks.

Details of Reliance Jio’s long-term prepaid plans

The telecom company’s long-term pre-paid plans offer 100 free text messages per day and free voice calling, for local as well as national (STD) calls. The data offerings and validity periods of these vary from plan to plan.

Reliance Jio’s four long-term prepaid plans

The first Reliance Jio long-term prepaid plan costs INR 999. It has a validity of 90 days and offers 60 GB of 4G mobile data usage. For the duration of the validity period, the usage remains unlimited. It also remains unlimited after the high-speed data has been exhausted. Under this plan, there is no daily data usage limit. The monthly cost of the plan approximately comes to INR 333. This plan is the most affordable long-term prepaid plan offered by Reliance Jio.

The second long-term plan costs INR 1,999. This plan offers a high-speed data allowance of 125 GB and it has a validity period of 180 days. Similar to the first long-term plan, this plan does not have a daily data usage limit. The monthly cost of the plan approximately comes to INR 333. This means there is an average of 694 MB of data allowance available for the user per day.

The third long-term plan costs INR 4,999. This plan offers 350 GB of high-speed data usage and it has a validity period of 360 days. Similar to the first two plans mentioned above, this plan does not have a daily data usage limit. Therefore, there is flexibility for the data usage. The estimated monthly cost of the plan is INR 416. This means there is an average of 972 MB of data allowance available for the user per day.

The fourth Reliance Jio long-term prepaid plan costs INR 9,999. This is the highest-costing long-term plan offered by the telecom company. It offers 750 GB of high-speed data usage and it has a validity period of 360 days. The estimated monthly cost of the plan is INR 833. This means there is an average of 2.08 GB of data allowance available for the user per day.

Summary: Reliance Jio offers four long-term prepaid plans to its 4G network users. This is an effort to cater to the varied needs of different mobile phone users across India.

Everything to Know About the 5th Reliance JioPhone 2 Flash Sale

September 19, 2018

Reliance Jio, the telecom wing of the Mukesh Ambani-led Reliance Industries Limited (RIL), has announced details of the fifth JioPhone 2 flash sale on their official website. The fifth Reliance JioPhone 2 flash sale will take place at noon on September 20, 2018. The telecom company has announced details of the price as well as prepaid plans for the handset.

Details of the Reliance JioPhone

Mukesh Ambani, the Chairman and Managing Director of RIL, had launched Reliance JioPhone in October 2017, which was a 4G-enabled feature-phone. The upgraded version of the phone is called the Reliance JioPhone 2, which was launched in August 2018. Recently, Reliance Jio has also introduced the popular messaging app, WhatsApp, to its JioPhone line-up.

The previous four Reliance JioPhone 2 flash sales in 2018 were held on August 16 and 30 and September 6 and 12.

How to book the Reliance JioPhone 2

On the date of the upcoming fifth flash sale of the Reliance JioPhone 2, customers need to log on to Reliance Jio’s website, Jio.com, at noon. After customers select ‘JioPhone 2,’ they need to enter their pin code and proceed to checkout. At the checkout, customers must provide their personal details such as their name, mobile number, and email address.

After providing this information, customers must select the payment option that they want. After the payment of INR 2,999 is made, customers will receive an order confirmation notification via email or SMS.

Details of the prepaid recharge offers

Currently, the telecom company offers three prepaid plans for the Reliance JioPhone. These three plans are priced at INR 49, INR 99, and INR 153 respectively.

Under the INR 49 recharge plan, customers receive unlimited calling and 1 GB free data. In this pack, the telecom company also offers 50 free text messages. This plan has a validity period of 28 days.

Under the INR 99 recharge plan, customers receive unlimited calling and 14 GB free data. The daily data limit enjoyed by customers under this plan is 0.5 GB. In this pack, Reliance Jio also offers 300 free text messages. This plan has a validity period of 28 days.

Under the INR 153 recharge plan, customers receive unlimited calling and 42 GB free data. The daily data limit enjoyed by customers under this plan is 1.5 GB. In this pack, the telecom company also offers 100 free text messages per day. This plan has a validity of period of 28 days.

Specifications of the JioPhone 2

The JioPhone 2 runs on the KaiOS operating system. It features a QWERTY style keypad and comes with a 2 MP rear camera and a 0.3 MP front camera. It also features a 512 MB RAM, a 4 GB ROM, and a 2000mAh removable battery.

Summary: Reliance Jio has announced that the fifth flash sale of the Reliance JioPhone 2 will take place at noon on September 20, 2018. Customers can go to Jio.com to book the handset and choose from three varied recharge plans to suit their needs.

Reliance Jio Uses Satellites to Extend 4G Services to Rural and Remote Areas

September 12, 2018

Reliance Jio, the telecom wing of the Mukesh Ambani-led Reliance Industries Limited (RIL), is all set to use satellites to connect remote and rural parts of the country with its 4G LTE-based data and voice services. The telecom company is going to deploy a satellite backhaul-based network. It will utilize technology from Hughes Communications India Limited (HCIL) and capacity from the Indian Space Research Organization (ISRO).

About the satellite network project

Using the satellite network, Reliance Jio aims to connect over 400 LTE sites. These sites are beyond the reach of terrestrial backhaul services. The satellite network is currently under different phases of deployment. To set up the satellite backhaul so that rural and remote areas receive 4G connectivity, Reliance Jio has awarded HCIL a contract worth more than USD 10 million.

Importance of satellite-based network

In rural and remote areas, microwave technology cannot be used due to terrain challenges, height, and large investment issues. Fiber technology also involves Right of Way (RoW) problems and high deployment costs. Due to these issues, a satellite-based network is best suited to extend connectivity of Jio 4G services in rural and remote areas.

Statements of key people

The Reliance Jio Group President, Jyotindra Thacker, stated that the telecom company will utilize HCIL’s Jupiter system to support its 4G sites. He further stated that a satellite system is necessary to enable seamless and ubiquitous connectivity to each and every part of India.

The President of HCIL, Partho Banerjee, stated that satellite technology is the ideal technology that can be used to extend 4G LTE services to rural and remote communities.

The Senior Vice President and Head of Enterprise Business of HCIL, Shivaji Chatterjee told Entertainment Times that where 4G and satellite backhauling are concerned, Reliance Jio is making innovations. He also stated that Reliance Jio is the first telecom company in creating a captive network if its own. To do this, Reliance Jio has taken a bulk capacity of two ISRO satellites and HCIL’s satellite technology for its 4G services.

Chatterjee further stated that the satellite platform being utilized by Reliance Jio provides a particular type of acceleration and compression that is native for LTE traffic. In terms of bandwidth, this can offer a 50 percent advantage.

Views of industry analysts

Industry analysts have stated that satellite technology is the next best thing after microwave and fiber technology. It can offer more than enough capacity for bandwidth and each site can provide internet speeds that range between 10 Mbps and 30 Mbps.

Details of Reliance Jio’s earth stations and mini-hubs in India

In collaboration with HCIL, Reliance Jio is setting up two earth stations in Nagpur and Mumbai. For the latest satellite backhaul-based services, Reliance Jio will set up two mini hubs in Port Blair and Leh. These mini hubs will offer connectivity in Jammu and Kashmir, Andaman Nicobar, Uttaranchal, Lakshadweep, and the north-eastern states.

Summary: Reliance Jio is using satellites to provide 4G services in remote and rural areas. To do this, the telecom company is collaborating with ISRO and HCIL for capacity and back-haul based network technology.

Reliance Jio Receives Strong Response for the JioGigaFiber Service

September 5, 2018

Reliance Jio, the telecom wing of the Mukesh Ambani-led Reliance Industries Limited (RIL) has stated that it received a strong response for the Reliance JioGigaFiber service from approximately 900 cities across India. This response was received over the course of two weeks, when the high-speed broadband service was open for registrations from August 15, 2018.

Statement of a Reliance Jio Executive

A Reliance Jio executive stated that the company is positive about the Reliance JioGigaFiber prospects. Subscribers are currently sending in registration requests. In addition to this, subscribers are requesting their neighbors to register for this service. This can help the telecom company prioritize the rollout schedules.

Reliance Jio’s collaboration with local cable operators

Reliance Jio officials have stated, on the condition of anonymity, that Reliance Jio will be taking along all stakeholders while building on the positive and strong response the Reliance JioGigaFiber service has received. While the telecom company has not announced a specific date for the commercial roll-out of the broadband service, it intends to collaborate with local cable operators to resolve last-mile connectivity challenges.

Industry experts are of the opinion that last-mile connectivity deployments would be integral for Reliance Jio Reliance Jio when launching its greenfield fiber-to-the-home (FTTH) service. This is because all the buildings who will be receiving this service require to be physically connected with the fiber lines.

Details of the Reliance JioGigaFiber service

Reliance JioGigaFiber was announced at RIL’s 41st Annual General Meeting (AGM), which was held on July 5, 2018. The testing phase of this broadband service lasted two years and produced strong results. It is expected that the high-speed broadband internet service will provide speeds of up to 1 Gbps.

The Reliance JioGigaFiber consists of two separate services. The first service is the JioGigaFiber router and the second service is the JioGigaFiber set-top box. The former will establish and run internet-based services across multiple devices, while the latter is a set-top box, which will be used for advanced television services like digital shopping, 4k content, and immersive gaming experiences. This fixed-line FTTH broadband service will offer subscribers the option of making video-calls as well. These video-calls can be made between televisions that operate on the JioGigaFiber connection.

How to register for Reliance JioGigaFiber

Interested subscribers may register for a new JioGigabFiber connection from the MyJio app or Jio.com. Through both portals, subscribers will be required to enter their personal and contact details and register for the service.

JioGigaFiber registrations are free of cost and there is no upfront payment. On a specified date, an installation team will arrive at the subscriber’s address. They will bring a JioGigaRouter to install the new GigaFiber connection. Moreover, for the first three months, new subscribers are expected to receive the connection free of cost.

Summary: Reliance Jio has received a strong response for the JioGigaFiber broadband service from approximately 900 cities in India. Collaborations with local cable operators will help the service expand its reach as well as unite the industry as a whole.

Reliance Jio Becomes India’s Second-largest Telecom Company by Revenue

August 29, 2018

Reliance Jio, the telecom wing of the Mukesh Ambani-led Reliance Industries Limited (RIL), has become India’s second largest telecom company based on Revenue Market Share (RMS). The growth has been attributed to the strong performance of Reliance Jio, the affordable pricing strategies of its services, and the competitive spirit it introduced in the telecom space.

A history of Reliance Jio’s revenue

A report in the Economic Times stated that, for the April-June quarter of 2018, Reliance Jio’s adjusted gross revenue was INR 7,200 crore. At the end of the aforementioned quarter, the RMS of the telecom company increased by 253 basis points to 22.4 percent.

Reliance Jio stated that, for the three-month period ending on June 30, 2018, its standalone net profit increased to INR 612 crore. This was an increase of 19.9 percent as compared to the previous quarter. In the quarter of January-March 2018, the company registered a net profit of INR 510 crore.

In the April to June quarter, Reliance Jio’s revenue from operations was INR 8,109 crore. This was an increase of nearly 14 percent compared to the fourth quarter of the financial year 2017-18. In the October-December quarter of the 2017-18 financial year, the telecom company reported a maiden profit of INR 504 crore.

Statement of Mukesh Ambani

Since the launch of Reliance Jio in 2016, as of June 30, 2018, the telecom company has received a subscriber base of more than 215.3 million. It acquired 215 million customers within 22 months of inception of the business.

Speaking about Reliance Jio, the Chairman and Managing Director of RIL, Mukesh Ambani, stated that Reliance Jio would continue on its journey to make India a technologically savvy nation. It is dedicated to the digital revolution of India. He further stated that Reliance Jio has seen a positive rise in the customer base over the last one year.

Reports about Reliance Jio’s progress

In early August 2018, it was reported that the telecom company added the highest number of new customers, in June 2018, to its mobile network. According to a report by the Telecom Regulatory Authority of India (TRAI), Reliance Jio added more than 97 lakh new connections during June 2018.

Performance of Reliance Jio

The strong performance of Reliance Jio has been attributed to its competitive and affordable pricing plans for its 4G mobile data network. Its wireless customers enjoy a high-speed internet connection and an interactive digital ecosystem. Reliance Jio offers a host of prepaid and postpaid data plans to meet the varied needs of the different mobile phone users across India. Its offerings also include free voice calling.

The recently introduced ‘JioPhone Monsoon Hungama Offer’ and ‘Jio Double Dhamaka Offer’ also contributed towards Reliance Jio’s performance. Reliance Jio’s growth is also attributed to its strong performance in the rural mobile markets.

Summary: Reliance Jio has become India’s second-largest telecom company based on the revenue earned. This achievement has been attributed to the company’s strong performance in affordable mobile network offerings and the rural mobile markets.

Reliance Jio Introduces Unlimited Validity Period in 12 Top-up Recharge Packs

August 8, 2018

Reliance Jio, the telecom division of the Mukesh Ambani-led Reliance Industries Limited (RIL), currently offers subscribers 12 top-up recharge plans that are priced from INR 10 to INR 5,000, with an unlimited validity period, according to Jio.com, the company’s official website. The company’s prepaid users have the option of recharging their connections with any one of the 12 new ‘full talktime’ packs, nine of which do not charge a processing fee. This has been introduced so that the Reliance Jio prepaid subscribers may reap maximum benefits of recharge packs.

The value of talktime

Talktime, upon the activation of a recharge voucher, refers to the value a subscriber receives in terms of an amount of money or usable minutes in the prepaid account. This talktime value can be utilized for voice calls and other telecom services. An unlimited validity period means that the talktime or talk-value stays in the account indefinitely when added to a Reliance Jio prepaid connection upon recharge activation. Now, there are two types of recharge plans that Reliance Jio offers, which include those with regular talktime and those without.

Regular talktime top-up packs

Under this category, Reliance Jio customers can avail of three recharge vouchers with regular talktime and unlimited validity.

The Reliance Jio INR 10 top-up plan provides a talktime of INR 7.7 while charging the subscriber a processing fee of INR 1. The tax deduction amounts to INR 1.3.

The INR 20 top-up plan provides a talktime value of INR 15.39 after charging a processing fee of INR 2 and tax of INR 2.61

Finally, the INR 50 top-up recharge pack provides a talktime of INR 40.48. The processing fee is INR 3 and the tax deducted is an amount of INR 6.52.

Full talktime top-up packs with a processing fee

In this category, Reliance Jio offers three full talktime recharge packs that charge a processing fee as well. Their price and deduction details are the same as the aforementioned three regular talktime top-up packs.

Full talktime top-up packs without a processing fee

In this category, the recharge plans are also known as ‘full talktime top-up vouchers.’ There are nine of them, priced from INR 100 to INR 5,000. The most beneficial aspect of these top-up plans is that no processing fee is charged for activating them.

The retail prices of the nine full talktime top-up vouchers are INR 100, INR 150, INR 200, INR 300, INR 500, INR 750, INR 1,000, INR 2,000, and INR 5,000. The monetary talktime value of these vouchers is equivalent to their respective retail prices. While no processing fee is charged, taxes are still deducted.

The growth of Reliance Jio

Since the inception of its business in 2016, Reliance Jio has acquired a subscriber base of over 200 million users as of August 2018. This is attributed to the variety of data packs provided to meet the varied needs of subscribers across India.

Summary: Reliance Jio has introduced 12 new top-up prepaid recharge packs with unlimited validity priced between INR 10 and INR 5,000. This means that the talk-value added remains in the subscriber’s account indefinitely.

Reliance Industries Limited’s Stock Hits a Record High

August 1, 2018

Reliance Industries Limited (RIL) has become India’s most valued company, based on market capitalization. Its shares have reached record-high levels. Today, it is valued at INR 1,178.05 on the BSE. The company has a market capitalization of INR 7.47 lakh crore, following the strong results of Q1 of 2018.

History of RIL’s success

On October 8, 2007, RIL first crossed the USD 100 billion market capitalization mark in an intra-trade day. At the time, the US dollar was quoted at INR 39.59. In November 2017, RIL’s market capitalization had crossed INR 6 lakh crore. In 2017 alone, RIL added more than INR 2 lakh crore to its market capitalization value. Previously, in February 2017, RIL has just crossed the INR 4 lakh crore market capitalization mark.

RIL’s growth in 2018

In July 2018, RIL’s market capitalization was INR 7 lakh crore. The company had managed to nearly double its market capitalization from the previous year to just shy of INR 7.5 lakh crore.

RIL’s journey over the years

The Chairman and Managing Director of RIL, Mukesh Ambani, spoke at the Financial Times ArcelorMittal Boldness in Business Awards in March. While speaking about the rise of RIL, he stated that the company originally began its operations with a capital of only INR 1,000, which translated to USD 13 at the time, and only one employee. In 1966, his father, Dhirubhai Ambani, founded Reliance with a dream to build a world-scale and world-class Indian business. His father’s dreams were realized in his own lifetime. Now, as the company moves forward, Mukesh Ambani is building on those dreams.

At a more recent event, Ambani stated that for the last 40 years, since Reliance’s Initial Public Offering (IPO) in 1977, shareholders’ investments have doubled every two and a half years. Ambani was humbled and honored by this achievement. It is all due to RIL’s popularity with the Indian masses.

Reliance Jio’s success

In 2016, Reliance Jio transformed India’s digital atmosphere with its 4G and cellular services. Every Jio customer now enjoys free unlimited phone calls and 1GB of 4GB data every month. Jio also offers high-speed wireless Internet connectivity and a host of both post-paid and pre-paid recharge plans. These are priced keeping in mind the varied needs of different mobile phone users. As of July 2018, Jio has acquired over 200 million subscribers.

The upcoming Jio GigaFibre and Jio GigaTv set-top box are also anticipated by Jio subscribers.

RIL’s future ventures

The company has recently announced its entry into the e-commerce and content creation and distribution arena. Both these ventures are in an effort to bring quality services and easily accessible electronics to Indian customers. The announcement of these new ventures has aided RIL’s market capitalization.

Summary

RIL’s market capitalization has hit a record high of INR 7.47 lakh crore. This has been attributed to RIL’s constantly evolving vision and efforts to make India a more technologically savvy nation.

The JioPhone Transforms the Indian Phone Industry

July 25, 2018

The 4-G enabled JioPhone launched in 2017 has reportedly played a key role in helping the feature phone industry outpace the growth of the smart-phone industry for two consecutive financial quarters. According to the latest data provided by Counterpoint Research, the demand for the JioPhone is due to strategic planning by Reliance Jio. Aggressive upgrades and catering to changing customer needs has helped the brand to keep up its good performance.

Market Share of Feature and Smart Phones

The Counterpoint Research data stated that feature-phone market’s share in India doubled in Q12018, compared to the country’s overall smart-phone market, which remained relatively flat, year-on-year.. This is attributed to the well-planned shipments of the Reliance JioPhone for the January-March quarter of this year, Jio held 36% of the nation’s feature phone market. This increased to 47% in the following quarter of April-June.

The report also stated that the feature-phone market in general saw a year-on-year growth of 21 %, during the quarter of April-June of 2018. In comparison, the smart-phone market saw a growth of only 18 %. The report attributes this outpacing of markets to the popularity of the Reliance JioPhone with Indian consumers. Reliance Jio has thus become the country’s biggest feature phone vendor.

Why the JioPhone is a success

Since its launch last year, the JioPhone has acquired a user base off 25 million.

It features 4G and Voice-over-LTE capabilities available with different tariff plans that were all affordable. This was seen as paradigm shift in the availability and accessibility of 4G services in the nation. In January 2018, a new data plan priced at just INR 49 per month was introduced, giving subscribers the benefits of free voice calls and 1GB of 4G data.

In an effort to constantly evolve, Reliance Jio has reinvented its JioPhone in 2018. It has done so by offering upgrade offers that cost less than INR 501 and bringing WhatsApp, a popular messaging application to the JioPhone 2.

How the Monsoon Hungama offer helped the JioPhone

The Monsoon Hungama offer was introduced in July  2018, wherein the 4G-enabled feature phone would be available at a reduced price of INR 501 in exchange for the customer’s old-but-working feature phone. This amount is a refundable deposit that can be claimed at the end of a three-year period. Subscribers also have the option of choosing from three different tariff plans, each individually priced at INR 49, INR 99, and INR 153 respectively. Furthermore, the subscribers must continue to make recharges for the next 36 months.

The opinions of feature-phone and smart-phone analysts

Industry analysts seem to believe that by clubbing a reduced price with an exchange offer, Reliance Jio has contributed to the growth of the Indian feature-phone market.

Summary

The manner in which Reliance Jio introduced the JioPhone to the nation has helped the feature-phone market grow. This is due to the company’s strategic marketing that aims to help Indian customers advance to accessible 4g services at affordable rates.