Indian telecom operator Reliance's digital arm, Jio Platforms, has announced the launch of a new mobile handset and associated tariff plans as part of its ongoing efforts to convert users still stuck on legacy 2G networks in India. Called "Jio Bharat," the 4G-enabled handset offers modern features such as mobile payments with UPI and access to Jio's on-demand video and music streaming services. The device, priced at 999 Indian rupees ($12.2), is targeted at the 250 million consumers who find the transition to 4G networks cost-prohibitive. Reliance will manufacture the Jio Bharat and collaborate with other phone makers. Karbonn has already partnered with Jio Platforms for the platform.
In addition to the handset, Jio Platforms has introduced an affordable tariff plan. For just 123 Indian rupees ($1.5) per month, subscribers get 14GB of data usage and unlimited voice calls. There is also an annual plan priced at 1,234 Indian rupees ($15). The Jio Bharat handset will be available for consumers to try out starting July 7 through a beta trial, allowing Reliance to ensure scalability and smooth processes for upgrading feature phone users.
Reliance Jio's chairman, Akash Ambani, stated that the Jio Bharat phone is another step towards bringing value to different user segments with meaningful use cases. This isn't Ambani's first attempt at affordable handsets, as the company previously launched the JioPhone Next in collaboration with Google. However, the higher price tag of the JioPhone Next limited its adoption.
JP Morgan expects Jio Bharat to disrupt the 2G market and help Jio gain market share, following recent price increases by competitors Bharti and Vi. This move is expected to halt further tariff increases for 2G and enable Jio to expand its presence in that segment. Jio has already been aggressive in the premium market through competitive postpaid and fiber pricing.
Overall, the introduction of the Jio Bharat handset and affordable tariff plan showcases Jio Platforms' commitment to bridging the digital divide in India and providing value to consumers across different market segments.